Verizon prices $2.06 billion; Coca-Cola eases; Microsoft trades mostly flat; Apple softens

By Cristal Cody

Eureka Springs, Ark., Sept. 2 – Verizon Communications Inc. tapped the primary market on Friday with a $2.06 billion offering of 30-year senior notes.

Investment-grade bond market activity remained mostly quiet over the day following the release of the Labor Department’s August jobs report and thanks to light staffing due to the Labor Day holiday weekend.

The Labor Department reported that non-farm payrolls rose 151,000 in August, compared to the 180,000 forecasted. The unemployment rate was unchanged from July at 4.9%, higher than market expectations of 4.8%.

The Markit CDX North American Investment Grade index improved on Friday to close more than 1 basis point tighter at a spread of 72 bps.

In the secondary market, Coca-Cola Co.’s notes due 2026 traded about 1 bp softer on the day.

Verizon Communications’ 2.625% senior notes due 2026 priced in late July traded about 3 bps better on Friday but remained softer than issuance.

Microsoft Corp.’s notes (Aaa/AAA/) priced a month ago were mostly unchanged.

Apple Inc.’s senior notes (Aa1/AA+/) priced in late July traded about 2 bps to 7 bps wider during the session.

Verizon prices

Verizon Communications (Baa1/BBB+/A-) priced $2.06 billion of 4.2% senior notes due Sept. 22, 2046 on Friday at par, according to an FWP filing with the Securities and Exchange Commission.

BNP Paribas Securities Corp., Taipei Branch, E.SUN Commercial Bank, Ltd. and MasterLink Securities Corp. were the underwriters.

The notes will be listed on the Taipei Exchange.

Proceeds are expected to be used to redeem all $870 million of the company’s 4.8% notes due 2044 by Sept. 23 at par plus accrued interest and for general corporate purposes.

Verizon is a New York City-based telecommunications company.

Coca-Cola eases

Coca-Cola’s 2.25% notes due 2026 traded about 1 bp softer on Friday at 69 bps bid, according to a market source.

Coca-Cola sold $1 billion of the notes (Aa3/AA-/A+) on Aug. 29 at a spread of 70 bps plus Treasuries.

The beverage company is based in Atlanta.

Verizon firms

Verizon’s 2.625% notes due 2026 firmed 3 bps in secondary trading to 127 bps bid, a market source said.

Verizon sold $2.25 billion of the notes (Baa1//A-) on July 27 at Treasuries plus 115 bps.

The telecommunications company is based in New York City.

Microsoft mostly flat

Microsoft’s 2.4% notes due 2026 traded flat to 1 bp tighter in the secondary market at 78 bps bid, according to a market source.

Microsoft priced $4 billion of the notes (Aaa/AAA/) on Aug. 1 at a spread of 90 bps over Treasuries.

The computer software company is based in Redmond, Wash.

Apple widens

Apple’s 2.45% notes due 2026 were quoted 7 bps weaker at 85 bps bid on Friday, according to a market source.

Apple sold $2.25 billion of the notes on July 28 at a spread of 98 bps over Treasuries.

The computer and mobile communications device company is based in Cupertino, Calif.

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