FedEx, Constellation sell notes; Mid-American upsizes; Kommunalbanken in deal pipeline

By Cristal Cody

Tupelo, Miss., Jan. 29 – High-grade issuers including Constellation Brands, Inc., FedEx Corp. and MidAmerican Energy Co. stopped by the primary market on Monday.

Constellation Brands priced a three-part offering of notes in a $1.9 billion deal.

FedEx tapped the primary market with $1.5 billion of notes in two tranches.

MidAmerican Energy priced long 30-year green first mortgage bonds in an offering that was upsized to $700 million from $500 million.

Coming up on Tuesday, Kommunalbanken AS is expected to price a Rule 144A and Regulation S offering of three-year notes.

With many companies still in earnings blackout periods, supply is expected to stay light following less than $10 billion of corporate issuance in the previous week, according to market sources.

About $20 billion of supply is forecast by syndicate sources for the week.

This week is the “midpoint of this very busy earnings reporting season, which might imply a small pickup in the supply calendar,” BofA Merrill Lynch analysts said in a note released on Monday. “However, the January FOMC meeting will conclude next Wednesday, which could also slow the pace of new issue supply a bit.”

The Markit CDX North American Investment Grade 29 index softened nearly 1 basis point to close the day at a spread of 46 bps.

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