CSX, Rentenbank head to subdued primary; Time Warner bonds mixed in secondary

By Cristal Cody and Aleesia Forni

Virginia Beach, July 16 – Two issuers headed to Wednesday’s primary market during another muted session for investment-grade bonds.

CSX Corp. priced a $1 billion offering of senior notes in 10- and 40-year tranches, both pricing at the tight end of talk.

Meanwhile, Germany's Landwirtschaftliche Rentenbank sold a $500 million add-on to its existing notes due 2021.

In other market action, Freddie Mac announced it would not issue Reference Notes during the month of July.

The day’s new deals bring the week’s supply to around $7 billion.

One source noted that the market seems to be taking “a bit of a breather” this week, and that he believes the week’s supply is “unlikely” to hit earlier expectations of $15 billion to $20 billion.

“Could see some action tomorrow,” he noted.

Investment-grade bond spreads remained tight over the session after easing on Tuesday, market sources said.

The Markit CDX North American Investment Grade series 22 index firmed 1 basis point to a spread of 57 bps.

The two tranches of notes that CSX priced traded wrapped around issuance to about 1 bp tighter, a trader said.

Time Warner Inc.’s senior notes (Baa2/BBB/BBB+) brought in May were mixed in the secondary market on reports the company rejected a takeover offer of about $80 billion in cash and stock from Rupert Murdoch’s 21st Century Fox Inc., sources said.

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