High-grade primary hosts Ford, IBM, Penske; Ford Motor Credit soft; Citi, Kraft Heinz firm

By Aleesia Forni and Cristal Cody

Virginia Beach, Nov. 4 – Another hodgepodge of issuers stormed Wednesday’s primary market, with Ford Motor Credit Co. LLC, International Business Machines Corp. and Swedish Export Credit Corp. among the names pricing deals in the high-grade space during the session.

The day’s activity brings the week’s total new issuance of bonds to $13 billion.

Ford Motor Credit saw an “impressive” order book that was more than 2.5 times oversubscribed for its new $2 billion two-part offering, a market source said.

IBM priced its $900 million offering at the tight side of guidance.

And Penske Truck Leasing Co. LP upsized its newly printed seven-year tranche of notes to $650 million from an initial size of $500 million due to strong investor reception.

While the week’s current supply has some ground to cover to reach earlier estimates of $30 billion, sources continue to note that Thursday has the potential to be a busy day for the investment-grade primary market.

Ford Motor Credit’s existing 4.134% senior notes due 2025 widened 10 bps in secondary trading on Wednesday.

Citigroup Inc.’s 2.65% notes due 2020 traded 3 bps tighter.

In other secondary trading, Kraft Heinz Co.’s 3.95% notes due 2025 edged 1 bp tighter after the company announced on Wednesday that it will close seven factories and cut about 2,600 jobs to trim costs.

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