Light supply eyed for holiday week; Intel, Dominion Energy soft; AbbVie firms; Westpac stable

By Cristal Cody

Tupelo, Miss., Nov. 22 – The investment-grade primary market stayed quiet on Friday with volume expected to thin in the upcoming Thanksgiving Day holiday week.

This week, investment-grade and split-rated bond supply totaled more than $26 billion.

Syndicate sources forecast zero to about $5 billion of deal volume in the week ahead.

The bond markets will be closed Thursday and will close early at 2 p.m. ET on Nov. 29 for the holiday.

The Markit CDX North American Investment Grade 33 index ended Friday more than 1 basis point tighter at a spread of 51.5 bps.

In the secondary market, bonds were mixed going out ahead of the weekend.

Intel Corp.’s 2.45% senior notes due Nov. 15, 2029 that priced Monday were flat on the day but seen about 2 bps softer than issuance.

Dominion Energy Gas Holdings, LLC’s 3% senior notes due Nov. 15, 2029 brought at the start of the week firmed about 1 bp over the session but traded more than 5 bps wider than issuance.

Western Union Corp.’s new 2.85% senior notes due Jan. 10, 2025 were unchanged on the day but quoted about 4 bps better than where the issue priced Monday.

Meanwhile, AbbVie Inc.’s $5.5 billion of 3.2% notes due Nov. 21, 2029 priced as part of a $30 billion 10-tranche deal in the previous week tightened more than 5 bps during the session.

In other secondary trading, Westpac Banking Corp.’s 2.35% senior notes due Feb. 19, 2025 headed out flat on Friday but about 15 bps wider than where the paper priced in the previous week.

Westpac Banking’s notes have mostly softened this week following reports the company is facing charges of failing to deter money laundering involving child exploitation in Asian countries, according to market sources.

In a statement on Friday, Westpac Banking said its board “unreservedly apologizes” and remains committed to resolving the issues.

Intel unchanged

Intel’s 2.45% senior notes due Nov. 15, 2029 (A1/A+/A+) were unchanged on Friday at 67 bps bid in secondary trading, a market source said.

The company sold $1.25 billion of the 10-year notes on Monday at a spread of 65 bps over Treasuries, 10 bps better than initial talk.

Intel is a semiconductor chip maker based in Santa Clara, Calif.

Dominion Energy Gas firms

Dominion Energy Gas Holdings’ 3% senior notes due Nov. 15, 2029 (Baa1/BBB+/BBB+) traded about 1 bp tighter on Friday at 129 bps bid, according to a market source.

The company sold $600 million of the 10-year notes on Monday at a Treasuries plus 123 bps spread. The issue priced on the firm side of guidance in the Treasuries plus 125 bps area.

The bonds were priced as part of a $1.5 billion three-tranche deal.

Dominion Energy Gas Holdings is a Richmond, Va.-based natural gas company and subsidiary of Dominion Energy Inc.

Western Union

Western Union’s 2.85% senior notes due Jan. 10, 2025 were stable on Friday at 121 bps bid, according to a market source.

Western Union (Baa2/BBB/BBB+) priced $500 million of the notes on Monday at a spread of 125 bps over Treasuries.

Initial talk was in the Treasuries plus 150 bps area.

Western Union is an Englewood, Colo.-based money transfer network.

AbbVie firms

AbbVie’s 3.2% notes due Nov. 21, 2029 (Baa2/A-/) tightened more than 5 bps on Friday to 128 bps bid in the secondary market, a source said.

The company sold $5.5 billion of the notes on Nov. 12 at a Treasuries plus 130 bps spread as part of a $30 billion 10-tranche deal to fund its acquisition of Allergan plc.

AbbVie is a biopharmaceutical company based in North Chicago, Ill.

Westpac steady on day

Westpac Banking’s 2.35% senior notes due Feb. 19, 2025 (Aa3/AA-) were flat on Friday at 78 bps bid, a market source said.

The bank sold $1.25 billion of the notes on Nov. 12 at a 63 bps spread over Treasuries.

The bank is based in Sydney, Australia.

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