Sweden, Owens & Minor price as primary pace calms; spreads soften; Apple eases; AT&T flat

By Aleesia Forni and Cristal Cody

Virginia Beach, Sept. 11 – The investment-grade primary market slowed on Thursday following three solid days of issuance at the week’s start.

The market saw the Kingdom of Sweden, Owens & Minor Inc. and Harley-Davidson Financial Services Inc. each price new bond offerings.

Sweden sold the day’s largest offering, pricing a new $2 billion two-year note at the tight end of price guidance.

Meanwhile, Owens & Minor issued $500 million of senior notes in two tranches due 2021 and 2024, a market source said.

Both parts of the split-rated deal sold at the tight end of price talk.

Details of Harley-Davidson’s offering were unavailable at press time.

Roughly $27.7 billion of new investment-grade paper has priced this week, topping what sources had expected to be around a $25 billion week and bringing September’s total supply to more than $84 billion.

Investment-grade bond spreads headed out modestly softer on the day, sources said.

The Markit CDX North American Investment Grade series 22 index eased 1 basis point to a spread of 59 bps.

In the secondary market, Apple Inc.’s bonds traded about 4 bps wider from a week ago and about 5 bps weaker from where the notes priced in April, according to a market source.

AT&T Inc.’s 3.9% notes due 2024 were mostly unchanged in secondary trading, a source said.

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