ING, Tyson, Best Buy, Torchmark price ahead of Fed; quiet session amid rate hike likely

By Cristal Cody

Tupelo, Miss., Sept. 25 – ING Groep NV led deal action in the high-grade primary market on Tuesday with a $3.25 billion three-part offering of senior notes.

Also during the session, Tyson Foods, Inc. sold $900 million of senior notes on the tight side of guidance.

Torchmark Corp. brought $550 million of 10-year senior notes.

In addition, Best Buy Co., Inc. priced $500 million of 10-year notes.

Investment-grade deal volume week to date totals nearly $10 billion. High-grade issuers are expected to stay to the sidelines on Wednesday as focus turns to the Federal Reserve’s monetary policy announcement and anticipated rate hike, sources said.

On average, about $20 billion to $25 billion of issuance is forecast for the week.

Elsewhere on Tuesday, Vodafone Group plc was scheduled to continue a two-day round of fixed-income investor calls for a Regulation S multiple currency offering of hybrid notes (expected Baa3/BBB-/BBB-), a market source said.

The Markit CDX North American Investment Grade 31 index closed mostly unchanged at a spread of 63 basis points.

In the secondary market, new issues priced Monday mostly were tighter, a source said.

Royal Bank of Scotland Group plc’s $1.75 billion of 5.076% fixed-to-floating-rate senior notes due Jan. 27, 2030 were quoted about 2 bps better than issuance.

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