Quebec sells upsized notes; Kraft Heinz tightens; AT&T, Burlington Northern improve

By Aleesia Forni and Cristal Cody

Virginia Beach, Aug. 28 – The Province of Quebec sold an upsized $700 million issue of three-year floaters to close a quiet week for the investment-grade primary market on Friday.

The offering was upsized from $250 million and priced in line with talk.

BofA Merrill Lynch, BMO Capital, J.P. Morgan Securities LLC and RBC Capital Markets LLC are the bookrunners.

The session’s lone new issue brings the week’s total supply to $4.55 billion.

Also on Friday, Automatic Data Processing Inc. announced plans to bring a $2 billion debt offering to market.

Meantime, corporate investment-grade bond funds saw their fifth-straight week of outflows.

This week’s $1.99 billion of outflows follows last week’s outflows of $1.1 billion and brings the year-to-date total to $23.2 billion of inflows.

Bonds were mixed over the session.

Kraft Heinz Co.’s 3.95% notes due 2025 firmed 10 basis points in secondary trading on Friday.

AT&T Inc.’s 3.4% notes due 2025 continued to tighten over the session.

Burlington Northern Santa Fe LLC’s debentures (A3/BBB+) that priced earlier in the month traded about 1 bp to 5 bps tighter.

Ford Motor Credit Co. LLC’s 4.134% senior notes due 2025 were unchanged over the day.

Xerox Corp.’s 3.5% senior notes due 2020 headed out flat.

The Markit CDX North American Investment Grade index eased about 1 bp to a spread of 80 bps.

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