Fed diverts attention from new issues; Tech Data, Duke Realty come to market with new issues

By Sheri Kasprzak and Aleesia Forni

New York, Sept. 14 - New-issue action on Friday was markedly reduced following the Federal Open Market Committee's meeting on Thursday. Secondary trading volume was seen higher on Thursday, market sources said.

"Secondary trading volumes in both investment-grade and high-yield were meaningfully higher than the average daily volume, though most activity took place pre-Fed," said Jody Lurie, corporate credit analyst with Janney Montgomery Scott LLC.

Tech Data Corp. and Duke Realty LP tapped the market on Friday. One trader found it slightly "odd that [there were] so many issues on a Friday" but commented that the upcoming Rosh Hashanah holiday may have had something to do with the rush.

Meanwhile, the recent deal from Washington Real Estate Investment Trust was 5 basis points tighter on Friday.

Tech Data brings $350 million

Heading up Friday's light primary action, Tech Data brought $350 million of senior notes, said a filing with the Securities and Exchange Commission.

The joint bookrunners for the offering were Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Citigroup Global Markets Inc.

The notes (Baa3/BBB-/) are due Sept. 21, 2017, have a 3.75% coupon and priced at 99.621 to yield 3.834% at a spread of Treasuries plus 312.5 bps.

The notes feature a make-whole call at Treasuries plus 50 bps.

Proceeds from the offering will be used to fund the purchase price of the company's Specialist Distribution Group acquisition and pay other costs associated with the acquisition as well as for general corporate purposes.

Based in Clearwater, Fla., Tech Data is a technology products distribution company.

Duke Realty sells debt

In other new action, Duke Realty came to market with $300 million of 10-year senior notes, said a filing with the SEC.

The notes (Baa2/BBB-/) are due Oct. 15, 2022, have a 3.875% coupon and priced at 99.845 to yield 3.92% at a spread of Treasuries plus 205 bps.

The notes feature a make-whole call at Treasuries plus 35 bps.

The joint bookrunners were Barclays, Morgan Stanley & Co. LLC, UBS Investment Bank and Wells Fargo Securities LLC.

The company intends to use the proceeds from the sale to repay outstanding debt with near-term maturities, including all or a portion of its outstanding borrowings under its existing revolving credit facility, as well as for general corporate purposes.

Duke Realty is a REIT based in Indianapolis.

Washington REIT firms

Washington REIT's 3.95% 10-year notes were seen at 220 bps bid, 210 bps offered on Friday, a trader said.

The Rockville, Md.-based equity REIT priced the upsized $300 million issue on Wednesday to yield Treasuries plus 225 bps.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.