Target prices following wider talk; Cameron, PNC price; Assured Guaranty, Target tighten

By Cristal Cody and Aleesia Forni

Virginia Beach, June 17 – Target Corp. joined a number of smaller-sized deals in Tuesday’s primary, which saw more than $4 billion of paper price, bringing the week’s total to more than $11 billion.

Target’s $2 billion two-part offering, the session’s largest deal, was sold in fixed-rate tranches due 2019 and 2024.

The deal was also expected to include five-year floaters, though that tranche was dropped following the deal’s announcement.

In addition, a market source noted that price talk widened around 10 basis points from earlier guidance.

The deal’s orderbook was around two times oversubscribed.

In other primary action, Assured Guaranty US Holdings Inc., Cameron International Corp., American Campus Communities Operating Partnership LP, UDR Inc., Entergy Louisiana LLC and PNC Bank all brought deals.

The World Bank (the International Bank for Reconstruction and Development) joined the forward calendar on Tuesday, announcing plans to price a two-part offering of notes.

New paper was mostly better in secondary trading, while high-grade bond spreads headed out unchanged to modestly tighter, according to market sources.

The Markit CDX North American Investment Grade series 22 index was unchanged at a spread of 60 bps.

Assured Guaranty’s 5% notes due 2024 tightened more than 15 bps in aftermarket trading, according to a trader.

Target’s two tranches of notes firmed 4 bps to 7 bps, a trader said.

© 2015 Prospect News.
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