Morning Commentary: Solvay Finance, Whole Foods bonds tighten; credit spreads stable

By Cristal Cody

Tupelo, Miss., Dec. 2 – High-grade bonds priced at the start of the week by Solvay Finance America LLC and Whole Foods Market Inc. continued to trade stronger in the secondary market early Wednesday.

Solvay Finance America’s 4.45% senior notes traded about 8 basis points tighter than issuance.

Whole Foods Market’s 5.2% senior notes due 2025 improved 6 bps from where the bonds came on Monday.

The Markit CDX North American Investment Grade 25 index was mostly unchanged after ending the previous session 3 bps tighter at a spread of 81 bps.

The three-month Libor yield rose 1 bp on Wednesday to 42 bps.

Solvay Finance firms

Solvay Finance’s 4.45% notes due 2025 were quoted tight at 217 bps offered in secondary trading, according to a market source.

Solvay sold $800 million of the notes (Baa2/BBB-/BBB+) on Monday at a spread of 225 bps over Treasuries.

Solvay is a Brussels-based chemical manufacturer.

Whole Foods tightens

Whole Foods Market’s 5.2% senior notes due 2025 tightened to 284 bps offered, a market source said.

The bonds (Baa3/BBB-) priced on Monday in a $1 billion offering at Treasuries plus 300 bps.

The natural and organic foods supermarket is based in Austin, Texas.

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