Monsanto sees big demand, joins TD Bank in primary; Monsanto active in gray; TD Bank firms

By Cristal Cody and Aleesia Forni

Virginia Beach, June 26 – Monsanto Co. and Toronto-Dominion Bank headed to Thursday’s new issue market, adding another $6.25 billion to the week’s total supply.

Orders poured in to the $4.5 billion trade from Monsanto, which saw an orderbook that was more than than four times oversubscribed.

The seven tranches of the new issue sold around 15 basis points to 20 bps tighter compared to initial guidance.

In other primary action, the new issue from Toronto-Dominion Bank also saw solid demand for its $1.75 billion two-part five-year offering, with an orderbook reaching nearly $3 billion.

The deal priced at the tight end of talk, which had firmed around 5 bps from initial guidance.

Thursday’s supply brings the week’s total to roughly $14.1 billion, just short of earlier expectations of a $15 billion to $20 billion week.

Monsanto’s notes priced late afternoon with some of the tranches seen in the gray market, a trader said.

Toronto-Dominion Bank’s 2.125% notes due 2019 tightened about 3 bps in secondary trading, according to a trader.

Investment-grade bonds mostly moved wider over the afternoon, a source said.

The Markit CDX North American Investment Grade series 22 index eased 1 bp to a spread of 57 bps.

© 2015 Prospect News.
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