Abbott Labs sells $15.1 billion notes; KeyBank, Chevron Phillips Chemical tap market

By Cristal Cody

Eureka Springs, Ark., Nov. 17 – Abbott Laboratories tapped the high-grade bond market on Thursday with a $15.1 billion six-tranche offering of senior notes.

In addition, KeyBank NA priced $750 million of five-year fixed- and floating-rate bank notes.

Also, Chevron Phillips Chemical Co. LLC came with a $700 million issue of 10-year senior notes.

Since the U.S. presidential election, “energy spreads have tightened the most out of any sector, tightening 6 [basis points],” RBC Capital Markets, LLC analysts said in a note on Thursday. “Crude oil prices have been subject to wild swings over the last two months, moving from $43 to $51, and then back down to $43. These price swings had no impact on energy spreads, as they continued to tighten.”

Duke Energy Corp.’s 2.65% senior notes due 2026 headed out about 2 bps better in secondary trading.

Petroleum refiner HollyFrontier Corp.’s 5.875% senior notes due April 1, 2026 that reopened in the previous session were quoted about 10 bps tighter in the secondary market earlier on Thursday.

The Markit CDX North American Investment Grade index was mostly unchanged on the day at a spread of 75 bps.

Abbott Laboratories priced $15.1 billion of fixed-rate senior notes (Baa3/A+) in six parts on Thursday, according to a market source.

All of the tranches priced on the tight side of guidance.

BofA Merrill Lynch, Barclays and Morgan Stanley & Co. LLC were the bookrunners.

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