Progressive prices $550 million; Municipality Finance sells floaters; week’s supply thin

By Cristal Cody

Tupelo, Miss., Oct. 18 – Progressive Corp. sold $550 million of long 10-year senior notes on Thursday in the high-grade primary market.

Municipality Finance plc also priced $500 million of two-year floating-rate notes.

Week to date, more than $14 billion of investment-grade bonds have priced, led by Conagra Brands, Inc.’s $7.3 billion seven-part offering of senior notes on Monday.

About $25 billion to $35 billion of supply was expected by market sources for the week.

In other activity during the session, Constellation Brands, Inc. (Baa3/BBB-/) held fixed-income investor calls via BofA Merrill Lynch, Goldman Sachs & Co. LLC and J.P. Morgan Securities, LLC.

In addition, Oglethorpe Power Corp. (Baa1//BBB+) began a two-day round of fixed-income investor calls on Thursday via Goldman Sachs and MUFG.

The Markit CDX North American Investment Grade 31 index widened about 3 basis points over the day to a spread of 67 bps.

Bonds were mixed in the secondary market during the session, a source said. Bank and financial paper traded mostly flat to weaker on the day.

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