PepsiCo, Kohl’s, Santander Holdings do deals; PepsiCo soft; McDonald’s firms

By Aleesia Forni and Cristal Cody

Virginia Beach, July 14 – PepsiCo Inc. led a flood of issuance for the high-grade market on Tuesday, pricing $3.25 billion of notes.

Sumitomo Mitsui Banking Corp. sold a $3 billion four-part issue, and JPMorgan Chase & Co. priced a $2.5 billion 10-year senior holding company note.

Meantime, Kohl’s Corp. and Santander Holdings USA Inc. were each in the primary with $1.1 billion offerings.

The session also hosted new deals from Export Development Canada, European Investment Bank, the Canadian Imperial Bank of Commerce and Nationwide Building Society.

In total, the investment-grade primary market hosted $17.4 billion of new issuance on Tuesday, bringing the week’s supply so far to $32.4 billion in only two sessions.

TransCanada Pipelines Ltd. tapped the market on Tuesday with a C$750 million offering of 3.3% 10-year medium-term note debentures.

In the secondary market, PepsiCo’s existing 2.75% senior notes due 2025 were weaker than where they came in April.

In other trading, McDonald’s Corp.’s senior notes (A3/A-BBB+) traded about 1 basis point better over the day but wider than issuance.

The Markit CDX North American Investment Grade series 23 index firmed 1 bp to a spread of 67 bps on Tuesday.

The CDX index has ranged from a low spread of 60.4 bps to a high spread of 76.4 bps over the past 12 months, according to a Barclays Bank plc report.

© 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.