Fannie Mae to price Benchmark Notes; credit spreads stable; Microsoft, Alphabet remain tight

By Cristal Cody

Eureka Springs, Ark., Aug. 30 – The U.S. investment-grade corporate primary market stayed mostly quiet on Tuesday as the market slows in front of the Labor Day holiday.

Fannie Mae announced plans to price three-year Benchmark Notes.

Coca-Cola Co. detailed its $2 billion two-part sale of notes (Aa3/AA-/A+) priced in the previous session.

Canadian Imperial Bank of Commerce also detailed its $1.5 billion offering of three-year senior notes (Aa3/A+/AA-) sold in two tranches.

The Markit CDX North American Investment Grade index closed flat at a spread of 71 basis points.

In secondary trading earlier on Tuesday, Microsoft Corp.’s 2.4% senior notes due 2026 priced at the start of the month traded about 14 bps better than issuance.

Google holding company Alphabet Inc.’s 1.998% notes due 2026 priced on Aug. 2 traded 10 bps better than issuance.

Fannie Mae to price

Fannie Mae is offering three-year Benchmark Notes, according to a news release.

Barclays, Deutsche Bank Securities Inc. and Goldman Sachs & Co. are the lead managers.

Fannie Mae is a mortgage credit provider based in Washington, D.C.

Coca-Cola details notes

Coca-Cola sold $2 billion of notes (Aa3/AA-/A+) in two tranches, according to an FWP filing with the Securities and Exchange Commission.

The company placed $1 billion of 1.55% five-year notes at 99.89 to yield 1.573%. The notes priced with a spread of 40 bps over Treasuries.

Coca-Cola priced $1 billion of 2.25% 10-year notes at 99.884 to yield 2.263% and a spread of 70 bps plus Treasuries.

BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be used for general corporate purposes.

Coca-Cola is an Atlanta-based beverage company.

CIBC prices $1.5 billion

Canadian Imperial Bank of Commerce priced $1.5 billion of three-year senior notes (Aa3/A+/AA-) in two tranches on Monday, according to an FWP filing with the SEC.

The bank sold $1 billion of 1.6% notes due Sept. 6, 2019 at 99.982 to yield 1.606% and a spread of 70 bps over Treasuries and $500 million of floating-rate notes due 2019 at par with a coupon of Libor plus 52 bps.

Barclays, CIBC World Markets Corp., Citigroup Global Markets Inc., JPMorgan Securities LLC and Wells Fargo were the bookrunners.

Proceeds will be added to the bank’s funds and used for general corporate purposes.

The diversified financial institution is based in Toronto.

Microsoft firms

Microsoft’s 2.4% notes due 2026 were quoted about 2 bps tighter at 76 bps offered in secondary trading early Tuesday, according to a market source.

The company sold $4 billion of the notes (Aaa/AAA/) on Aug. 1 at 90 bps plus Treasuries.

The computer software company is based in Redmond, Wash.

Alphabet improves

Alphabet’s 1.998% notes due 2026 traded about 3 bps tighter early Tuesday at 58 bps offered in the secondary market, a source said.

Alphabet priced $2 billion of the notes (Aa2/AA/) on Aug. 2 at a spread of 68 bps over Treasuries.

Mountain View, Calif.-based Alphabet is the holding company for Google and other subsidiaries.

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