AutoNation, Magna, Colonial Pipeline do upsized deals; Barclays, Ford Motor Credit firm

By Aleesia Forni and Cristal Cody

Virginia Beach, Sept. 16 – AutoNation Inc., Magna International Inc. and Colonial Pipeline Co. were each in the primary market with upsized bond offerings during a solid session for investment-grade bonds as the Federal Reserve kicked off its two-day policy meeting.

In the day’s largest trade, AutoNation increased its offering to $750 million from initial size thoughts of $600 million.

Magna International’s $650 million 10-year notes offering sold on top of talk and attracted and order book that was more than 3.5 times oversubscribed.

Also on Wednesday, Omega Healthcare Investors Inc. priced $600 million of long 10-year notes, and Colonial Pipeline sold a $350 million issue due 2025.

So far, investment-grade issuance has fallen far short of expectations this week, with only around $8.1 billion pricing.

Sources had anticipated around $25 billion to $30 billion of supply.

Bonds were mixed over Wednesday’s session with traders focused on Thursday’s interest rate decision by the Federal Reserve.

Barclays plc’s 5.25% notes due 2045 came in 4 bps over the session.

Ford Motor Credit Co. LLC’s 4.134% senior notes due 2025 firmed 2 bps in secondary trading.

Morgan Stanley’s 4% senior notes due 2025 headed out flat to 1 bp softer.

The Markit CDX North American Investment Grade index ended 1 bp tighter at a spread of 78 bps.

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