Morning Commentary: Boston Properties, Southern Co. offer notes; Anthem, Celgene better

By Cristal Cody

Tupelo, Miss., Nov. 17 – Pricing action in the high-grade bond market is set to continue on Friday with at least two issuers marketing deals.

Boston Properties LP intends to sell senior notes.

Southern Co. is offering $25-par series 2017B junior subordinated notes due Dec. 1, 2077.

More than $25 billion of corporate bonds have priced over the week.

Anthem, Inc.’s 4.375% senior notes due Dec. 1, 2047 (Baa2/A/BBB) that priced on Tuesday climbed in early secondary trading on Friday, a source said.

The bonds traded over the morning as high as 102.40, up from where the notes went out on Thursday at 101.65.

Anthem, an Indianapolis-based health benefits company, priced the notes on Tuesday in a $1.4 billion tranche at 99.999 to yield 4.375% and a spread of 155 basis points over Treasuries.

Also active in the secondary market early Friday, Celgene Corp.’s new 3.45% senior notes due Nov. 15, 2027 (Baa2/BBB+) traded up to 99.37, a market source said. The notes went out on Thursday at 99.08.

The notes saw a trading high of 100.58 on Nov. 8 and a low of 98.64 on Nov. 13.

Celgene sold $1 billion of the notes on Oct. 31 at 99.848 to yield 3.468%, or a Treasuries plus 110 bps spread.

The global biopharmaceutical company is based in Summit, N.J.

Secondary market volume on Thursday included $17.41 billion of high-grade bonds traded, compared to $17.25 billion on Wednesday, $15.88 billion on Tuesday and $16.6 billion on Monday, according to Trace.

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