Walt Disney, St. Jude price ahead of Fed decision; Lowe’s bonds strong in secondary

By Aleesia Forni and Cristal Cody

Virginia Beach, Sept. 14 – Walt Disney Co. and St. Jude Medical, Inc. entered the investment-grade bond primary market on Monday, getting in ahead of this week’s Federal Open Market Committee meeting and a possible interest rate hike.

Walt Disney sold a $2 billion three-tranche offering, with each piece selling around 10 basis points to 15 bps tight of initial price thoughts.

St. Jude Medical’s $1.5 billion offering was also sold tighter than price talk and grabbed around $6.5 billion of orders.

In other new issues, Aviation Capital Group Corp. sold $900 million of senior notes in two parts, United Parcel Service, Inc. sold $57 million of floaters and Pricoa Global Funding I offered a $350 issue of three-year notes.

New bonds from home improvement retailers Lowe’s Cos., Inc. and Home Depot Inc. that priced in the previous week remained stronger in the secondary market.

Lowe’s long bonds were up nearly 3 points from issuance on Monday. The company’s bonds traded 15 bps tighter than where the issue priced.

Home Depot’s 3.35% senior notes due 2025 were mostly unchanged over the session but continue to trade better than issuance.

The Markit CDX North American Investment Grade index was flat over the day at a spread of 80 bps.

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