Actavis, Johnson, RBC price, primary spree continues; new issues mixed in aftermarket

By Cristal Cody and Aleesia Forni

Virginia Beach, June 10 – The high-grade primary market’s momentum continued, with $9.84 billion of new deals pricing Tuesday.

Actavis plc priced $3.7 billion of senior notes, and Johnson Controls Inc. sold $1.7 billion of senior notes.

Financial issuers had a solid showing, with new deals pricing from Royal Bank of Canada, Svensk Exportkredit AB (Swedish Export Credit Corp.), Wintrust Financial Corp., European Bank for Reconstruction and Development (EBRD) and First Republic Bank.

Sempra Energy sold $500 million of 10-year bonds, while Spain’s Telefonica Emisiones, SAU priced a $500 million three-year offering, and Mid-America Apartments LP sold $400 million of 3.75% 10-year notes.

Nearly $19 billion of supply in only two sessions has priced so far this week, closing in on expectations of a $20 billion to $25 billion week.

Bonds traded mostly unchanged to slightly wider on the day, according to market sources.

Johnson Controls’ new issue was mixed in aftermarket trading, while Actavis’ notes traded wrapped around issuance to 5 basis points better, a trader said.

Mid-America Apartments’ 3.75% notes due 2024 headed out 1 bp wider on the bid side.

Sempra Energy’s 3.55% notes due 2024 were wrapped around issuance in the secondary market.

First Republic Bank’s 2.375% notes due 2019 were active in aftermarket trading, while Royal Bank of Canada’s new paper was not seen in late afternoon secondary activity.

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