Apple, Shell bring large deals to primary; existing Apple, Shell notes tighten

By Aleesia Forni and Cristal Cody

Virginia Beach, May 6 – Two massive new issues from Apple Inc. and Shell International Finance BV priced amidst a volatile market backdrop and declining Treasuries on Wednesday.

Apple garnered roughly $21 billion of orders for its $8 billion, seven-part offering of senior notes, with tranches of the new sale pricing between 5 basis points to 10 bps tight of initial price thoughts.

The book for Shell’s $10 billion offering was more than two times oversubscribed, according to a market source. The deal was priced in six tranches.

The two large trades joined Kingdom of Sweden, Host Hotels & Resorts LP, AvalonBay Communities, Inc., Harman International Industries, Inc. and Public Service Electric & Gas Co. in the primary market, bringing the day’s total supply to $20.03 billion.

So far this week has hosted $43,225,000,000 of new issuance, helped largely by AbbVie Inc.’s $16.7 billion trade that sold on Tuesday.

Existing notes from Apple and Shell traded tighter following the companies’ new issuance in Wednesday’s session, while credit spreads overall were weaker, sources said.

The Markit CDX North American Investment Grade series 23 index eased 2 bps to a spread of 66 bps.

Investment-grade bank and brokerage CDS prices were unchanged on Wednesday, according to a market source.

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