High-grade deal action thins; Europe Development Bank, Swedish Export price; new bonds mixed

By Cristal Cody

Eureka Springs, Ark., Sept. 27 – Several European and U.S. high-grade issuers stayed to the sidelines on Tuesday, while the Council of Europe Development Bank and the Swedish Export Credit Corp. tapped the U.S. primary market, sources report.

The Council of Europe Development Bank sold a $500 million dollar-denominated offering of long two-year senior global notes.

Swedish Export Credit priced $500 million of two-year notes.

The Markit CDX North American Investment Grade index firmed about 2 basis points over the day to end at a spread of 77 bps.

Southwest Gas Corp.’s $300 million offering of 3.8% senior notes due 2046 priced on Monday traded about 4 bps better earlier in the secondary market.

Kroger Co.’s senior notes (Baa1/BBB/BBB) priced in a $1.75 billion three-part sale on Monday traded flat to about 1 bp tighter.

Europe Development Bank prices

The Council of Europe Development Bank sold a $500 million dollar-denominated offering of 1% senior global notes due Feb. 4, 2019 on Tuesday at 99.828 to yield 1.075%, according to a FWP filing with the Securities and Exchange Commission.

The notes (Aa1/AA+/AA+) priced at a spread of 33.65 bps over Treasuries, or mid-swaps plus 7 bps.

Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC were the bookrunners.

The notes are expected to be listed on the Luxembourg Stock Exchange.

The Council of Europe Development Bank is a social development bank based in Paris.

Swedish Export sells notes

Swedish Export Credit (Aa1/AA+/) sold $500 million of two-year notes at par to yield Libor plus 10 bps on Tuesday, according to a FWP filing with the SEC.

The notes are due Oct. 4, 2018.

Credit Agricole CIB, Deutsche Bank AG, London Branch and Scotiabank Europe plc were the lead managers.

The company will apply to list the notes on the Irish Stock Exchange.

Swedish Export Credit is a Stockholm-based financial services company for the Swedish export industry.

Southwest Gas firms

Southwest Gas’ 3.8% senior notes due 2046 traded better earlier on Tuesday at 146 bps offered in the secondary market, a source said.

The company sold $300 million of the 30-year notes (A3/BBB+/A) on Monday at a spread of 150 bps over Treasuries.

Southwest Gas is a Las Vegas-based natural gas and construction company.

Kroger mixed

Kroger’s 2.65% notes due 2026 traded wrapped around issuance in the secondary market at 110 bps offered earlier in the day, according to a market source.

Kroger sold $750 million of the 10-year notes on Monday at a spread of 110 bps over Treasuries.

The company’s 3.875% notes due 2046 firmed to 154 bps offered in secondary trading.

Kroger priced $500 million of the bonds on Monday at Treasuries plus 155 bps.

Kroger is a Cincinnati-based grocery retailer.

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