High-grade supply forecast; new Apple notes firm; Kemper tightens; Whole Foods comes in

By Cristal Cody

Tupelo, Miss., June 16 – Investment-grade issuers stayed out of the primary market on Friday following a light volume week that missed expectations.

High-grade issuers priced about $14 billion of bonds over the first four sessions, compared to forecasts of about $20 billion to $25 billion of issuance.

Supply is expected to pick up in the week ahead with several issuers in the deal pipeline, a market source said. About $25 billion of issuance is expected over the week.

FirstEnergy Corp. (Baa3/BBB-/) is in the deal pipeline with a notes offering following a two-day round of investor calls on Thursday.

Also, Suntory Holdings Ltd. (Baa2/BBB/) is preparing to hold investors calls on Monday and meetings on Tuesday for a Rule 144A and Regulation S dollar-denominated offering of five-year senior notes.

New bonds priced over the week were mixed in the secondary market.

Fifth Third Bancorp’s $700 million offering of five-year senior notes were ending the week wrapped around issuance.

Apple Inc.’s $1 billion of 3% 10-year senior notes traded about 2 basis points better.

Kemper Corp.’s reopened 4.35% senior notes due Feb. 15, 2025 firmed more than 10 bps.

In other secondary trading, Whole Foods Market Inc.’s 5.2% notes due Dec. 3, 2025 (Baa3/BBB-/) tightened about 85 bps on Friday following the news Amazon.com, Inc. will purchase the natural and organic foods grocer for $13.7 billion in cash.

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