Mesa Airlines prints equipment notes; Dow Chemical widens; Newell Rubbermaid improves

By Aleesia Forni and Cristal Cody

New York, Dec. 15 – Mesa Airlines Inc. announced a sale of equipment notes on Tuesday, while the market’s tone improved somewhat with credit spreads tightening on the day.

Elsewhere, primary activity was subdued as the Federal Reserve kicked off the first day of its two-day policy meeting.

Players are anticipating the Federal Open Market Committee to announce an increase in the benchmark rate when it releases its statement at 2 p.m. ET on Wednesday in what would be the first hike in nine years.

The slower pace is expected to continue throughout the remainder of the calendar year, with the exception of the possibility of off-the-radar new issues.

Investment-grade bonds were mixed in secondary trading over the session.

Dow Chemical Co.’s 8.5% notes due 2019 widened 10 bps on the day and have remained weak since the company announced it will merge with DuPont Co.

Charter Communications Inc.’s 4.908% split-rated notes due 2025 were unchanged after widening more than 20 bps on Monday.

Time Warner Inc.’s 3.6% notes due 2025 firmed 2 bps during the session.

Newell Rubbermaid Inc.’s 3.9% senior notes due 2025 gained some ground after falling 7 points on Monday following the company’s announcement that it will acquire Jarden Corp. in a deal valued at $15 billion.

The Markit CDX North American Investment Grade 25 index closed the day 3 bps tighter at a spread of 90 bps.

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