Caterpillar sells $200 million; primary action thins; Time Warner flat; AT&T, Duke soften

By Cristal Cody

Eureka Springs, Ark., Dec. 16 – Caterpillar Financial Services Corp. tapped the high-grade primary market on Friday as the lone reported issuer.

The company priced $200 million of series H two-year floating-rate medium-term notes at par to yield Libor plus 45 bps on Friday, according to an FWP filing with the Securities and Exchange Commission.

BofA Merrill Lynch was the bookrunner.

UnitedHealth Group Inc. provided additional details of its $1.5 billion two-tranche notes sale brought to market on Thursday.

The issue consisted of $750 million of 3.45% 10-year notes priced at 99.896 to yield 3.462% and a spread of 85 bps over Treasuries and $750 million of 4.2% 30-year notes priced at 99.253 to yield 4.244% and a spread of Treasuries plus 105 bps.

The notes priced on the tight side of guidance, according to a market source.

The high-grade market is expected to wind down headed into the Christmas holiday with little to no deal volume expected in the week ahead, according to market sources.

The Markit CDX North American Investment Grade index closed on Friday mostly unchanged at a spread of 69 basis points.

Bonds from Time Warner Inc. and AT&T Inc., which announced plans to acquire Time Warner in October in a deal that U.S. president-elect Donald Trump has opposed, traded flat to modestly weaker on Friday.

Duke Energy Corp.’s 2.65% senior notes due 2026 eased about 1 bp.

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