Kellogg, Stanley Black & Decker, Paccar price; credit spreads tighten; McDonald’s mixed

By Cristal Cody

Eureka Springs, Ark., Nov. 7 – Kellogg Co., Stanley Black & Decker, Inc. and Paccar Financial Corp. tapped the high-grade primary market on Monday, while credit spreads tightened 4 basis points over the last session before the U.S. presidential election.

Kellogg priced $600 million of 2.65% seven-year senior notes at a spread of 107 basis points over Treasuries, according to an FWP filing with the Securities and Exchange Commission.

The notes priced at 99.91 to yield 2.664%.

HSBC Securities (USA) Inc., BofA Merrill Lynch and U.S. Bancorp Investments Inc. were the bookrunners.

Stanley Black & Decker priced a $345 million remarketing of two-year subordinated notes.

Paccar brought a $100 million offering of three-year medium-term floating-rate notes.

In addition to Tuesday’s election focus, the week also includes the Veterans Day holiday and bond market closure on Friday.

Deal volume is expected to top out at about $10 billion, according to market forecasts.

The Markit CDX North American Investment Grade index closed Monday 4 bps tighter at a spread of 77 bps.

McDonald’s Corp.’s bonds were mixed following its downgrade by Fitch Ratings to BBB from BBB+ on Monday. The company’s 3.7% notes due 2026 firmed 3 bps to 120 bps bid in the secondary market, but its longer bonds eased.

Citigroup, Inc.’s 3.2% notes due 2026 were quoted about 3 bps better earlier in the day.

Wells Fargo & Co.’s 3% notes due 2026 firmed about 1 bp.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.