Morning Commentary: Rolls-Royce notes tight in secondary market; S.C. Johnson bonds firm

By Cristal Cody

Tupelo, Miss., Oct. 19 – Rolls-Royce plc’s 3.625% senior notes due 2025 are trading stronger than issuance and were quoted 3 basis points tighter in early secondary trading on Monday.

S.C. Johnson & Son Inc.’s 4.75% senior notes due 2046 improved 1 bp from Friday.

The Markit CDX North American Investment Grade 25 index closed on Friday 2 bps tighter at a spread of 81 bps.

Rolls-Royce tightens

Rolls-Royce’s 3.625% notes due 2025 traded 3 bps tighter early Monday at 139 bps offered, according to a market source.

The company sold $1.5 billion of the notes (A3/A) on Oct. 6 at a spread of Treasuries plus 160 bps.

The London-based company designs, develops, manufactures and services aero, marine and industrial power systems for civil and military aircraft.

Johnson & Son firms

S.C. Johnson’s 4.75% bonds due 2046 firmed 1 bp from Friday to 167 bps offered, a market source said.

The company sold $850 million of the bonds (A/A-) on Tuesday at 187.5 bps over Treasuries.

The consumer products company is based in Racine, Wis.

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