American Air, SoCal Edison, others price; Occidental Petroleum on tap

By Cristal Cody

Tupelo, Miss., Aug. 1 – High-grade supply revved up on Thursday with about $5 billion of bonds priced following the Federal Reserve’s first rate cut since 2008 in the previous session.

American Airlines, Inc. sold $1.1 billion of pass-through certificates in three tranches.

Southern California Edison Co. priced $1.2 billion of new and reopened first and refunding mortgage bonds.

Crown Castle International Corp. brought $900 million of senior notes in two parts to the primary market.

In addition, Ryder System, Inc. sold $550 million of five-year medium-term notes.

Meanwhile, Occidental Petroleum Corp. is marketing up to nine tranches of senior notes to fund its acquisition of Anadarko Petroleum Corp. with fixed income investor calls on Thursday and Friday.

Investment-grade issuers stayed out of the primary market on Wednesday with the focus on the Fed’s monetary policy decision to cut rates by 25 basis points.

Week to date, investment-grade bond supply totals more than $23 billion. Market sources expected about $20 billion to $25 billion of issuance for the week.

Supply is expected to slow over the back half of August but remain strong with about $75 billion up to $100 billion of supply forecasted for the month, market sources report.

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