Morning Commentary: Gilead Sciences mostly stronger in secondary market; Home Depot unchanged

By Cristal Cody

Tupelo, Miss., Sept. 11 – Gilead Sciences Inc.’s $10 billion six-part issue of senior notes (A3/A-) that priced on Wednesday traded flat to about 8 basis points tighter in the secondary market early Friday.

Home Depot Inc.’s new 3.35% senior notes due 2025 were unchanged.

About $54 billion of new investment-grade bonds priced over the week.

“Looking ahead, though FOMC weeks are not characteristically heavy on issuance, we may see a few more deals sneak in early in the week,” RBC Capital Markets, LLC analysts said in a note on Friday.

The Markit CDX North American Investment Grade index closed 1 bp tighter on Thursday at a spread of 80 bps.

Gilead Sciences mixed

Gilead Sciences’ 2.55% notes due 2020 firmed to 101 bps offered in secondary trading, according to a market source.

The company sold $2 billion of the notes on Wednesday at a spread of Treasuries plus 105 bps.

Gilead Sciences’ tranche of 3.65% notes due 2026 were unchanged from issuance. The company sold $2.75 billion of the notes at Treasuries plus 150 bps.

The company’s 4.75% bonds due 2046, which priced on Wednesday in a $2.25 billion tranche at Treasuries plus 180 bps, firmed to 176 bps offered in the secondary market.

Gilead Sciences is a biopharmaceutical company based in Foster City, Calif.

Home Depot stable

Home Depot’s 3.35% notes due 2025 were unchanged at 109 bps offered, a market source said.

The Atlanta-based home improvement retailer sold $1 billion of the notes (A2/A/A) on Tuesday at 117 bps over Treasuries.

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