Kroger, Mack-Cali, Idaho Power tap market as yields decline; Kroger bonds mixed in trading

By Andrea Heisinger and Cristal Cody

New York, April 10 - The primary side of the high-grade bond market showed signs of life on Tuesday with deals from Kroger Co., Mack-Cali Realty, LP and Idaho Power Co.

The market tone remained weak, but wasn't as bad as on Monday when no new bonds were priced because of a hangover from a report on jobs added in March and continued headlines on debt problems in Europe.

Grocery retailer Kroger priced $850 million of paper in 10- and 30-year maturities.

Mack-Cali sold $300 million of 10-year notes in its first bond deal since August of 2009.

Electric company Idaho Power priced $150 million of first mortgage bonds evenly divided between two tranches. Both of the notes were sold at the tight end of price talk.

There was also an offering announced by Willow No. 2 (Ireland) plc that will be done in tranches due 2017 and 2022. The debt will be guaranteed by Zurich Insurance Group Ltd. A source working on the deal said that it did not price by late Tuesday, and added that it was "to be decided" when that would take place.

Only Kroger's new deal was seen in afternoon trading in the secondary market, sources said.

Kroger's bonds were mixed and mostly traded wider soon after pricing.

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