High-grade primary action resumes; Fannie Mae to price; Microsoft eases; Shire mostly flat

By Cristal Cody

Eureka Springs, Ark., Sept. 22 – High-grade issuers resumed preparing to price new bond deals on Thursday following the Federal Reserve’s decision to keep rates unchanged in the previous session.

Issuers including Air Liquide SA and First Midwest Bancorp, Inc. were expected to price new deals.

First Capital Realty Inc. was the lone high-grade Canadian issuer in the primary market on Thursday. The company priced a C$150 million add-on to its 3.604% 10-year series T senior debentures at 102.431 to yield 3.3%, or a spread of 217 basis points over the Government of Canada benchmark.

Looking ahead, new supply is expected from Fannie Mae, which plans to price 10-year Benchmark Notes.

Credit spreads ended the day better. The Markit CDX North American Investment Grade index firmed about 3 bps to close at a spread of 76 bps.

Microsoft Corp.’s senior notes (Aaa/AAA) that priced in August headed out about 5 bps wider in the secondary market on Thursday.

Shire Acquisitions Investments Ireland DAC’s senior notes (Baa3/BBB-) brought to market on Monday traded mostly flat to modestly better than issuance.

Fannie Mae preps sale

Fannie Mae plans to price new 10-year Benchmark Notes, according to a press release.

The notes are due Sept. 24, 2026.

Citigroup Global Markets Inc., Nomura Securities International Inc. and TD Securities (USA) LLC are the lead managers. The co-managers include Blaylock Beal Van LLC, Great Pacific Securities, Multi-Bank Securities, Inc. and Samuel A. Ramirez & Co.

The deal is expected to settle on Tuesday.

Fannie Mae will apply to list the securities on the EuroMTF market of the Luxembourg Stock Exchange.

Fannie previously priced $3.5 billion of three-year Benchmark Notes on Aug. 31.

The mortgage credit provider is based in Washington, D.C.

Microsoft eases

Microsoft’s 2.4% notes due 2026 eased 5 bps to 86 bps bid late Thursday afternoon in the secondary market, a source said.

The company sold $4 billion of the notes on Aug. 1 at a spread of 90 bps over Treasuries.

The company’s 3.7% bonds due 2046 widened about 6 bps to 131 bps bid over the session.

Microsoft priced $4.5 billion of the long bonds at Treasuries plus 145 bps.

The computer software company is based in Redmond, Wash.

Shire unchanged

Shire’s 2.4% notes due 2021 traded flat earlier on Thursday at 118 bps bid in the secondary market, a source said.

The five-year notes priced in a $3.3 billion tranche on Monday at Treasuries plus 120 bps.

Shire’s 3.2% notes due 2026 were wrapped around issuance in secondary trading.

The company sold $3 billion of the 10-year notes in Monday’s offering at 150 bps over Treasuries.

The notes are fully and unconditionally guaranteed by parent company Shire plc.

Shire is a global biotechnology company based in Dublin.

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