Cargill, Campbell, Kansas City Southern, Sonoco price; Nationwide on backburner

By Cristal Cody

Tupelo, Miss., April 20 – A handful of high-grade issuers kicked the week off with new bonds priced on Monday.

Cargill Inc. came by with $1.5 billion of senior notes in two tranches.

Campbell Soup Co. sold $1 billion of notes in two tranches in its first high-grade offering since 2018.

Kansas City Southern priced $550 million of 30-year guaranteed senior notes.

Sonoco Products Co., which was last reported in the primary market in 2011, priced an upsized $600 million of 10-year notes during the session.

Meanwhile, Nationwide Mutual Insurance Co. postponed a Rule 144A and Regulation S offering of dollar-denominated 40-year fixed-to-floating-rate notes due to market conditions on Monday.

Market tone was weaker as oil prices sank and equities declined.

The Markit CDX North American Investment Grade 33 index softened about 6 basis points from Friday to a spread of 93.07 bps on Monday.

The iShares iBoxx Investment Grade Corporate Bond ETF declined 0.57% to 129.82.

The PIMCO Investment Grade Corporate Bond Index ETF closed down 0.67% at 110.10.

As much as $60 billion of high-grade bond volume is expected this week with some market sources forecasting about $40 billion to $50 billion of supply.

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