Chevron, Altria, Eastman price ahead of Veterans Day holiday; Eastman mixed; Altria firms

By Aleesia Forni and Cristal Cody

Virginia Beach, Nov. 10 – The investment-grade primary market was lively to begin the holiday-shortened week on Monday, with $10.75 billion of new issuance pricing.

Chevron Corp. sold a new $4 billion six-part issue of senior notes, while Freeport-McMoRan Inc. priced $3 billion of senior notes in four parts.

Also on Monday, Eastman Chemical Co. sold $2 billion of senior notes in two tranches.

Philip Morris USA Inc. subsidiary Altria Group Inc. sold $1 billion of 2.625% notes due 2020.

In other primary action, Bank Nederlandse Gemeenten NV sold a $500 million add-on to its recently priced 0.5% notes due 2016.

And Federal Realty Investment Trust priced $250 million of 4.5% 30-year notes.

The investment-grade market’s momentum is expected to continue this week following the bond market’s closure for the Veterans Day holiday on Tuesday, with market sources predicting a $30 billion week.

Investment-grade credit spreads tightened over the day, while new issues traded flat to modestly better, market sources said.

The Markit CDX North American Investment Grade series 23 index tightened 1 basis point to a spread of 65 bps.

Eastman Chemical’s new notes traded 3 bps to 4 bps better in the secondary market. The company’s add-on to its 4.65% due 2044 headed out wrapped around issuance, a trader said.

Altria Group’s 2.625% notes due 2020 firmed 3 bps in late afternoon trading.

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