Jackson National Life, Federal Realty, Municipality Finance price; Kroger bonds trade wider

By Cristal Cody

Tupelo, Miss., June 20 – Primary action slowed on Tuesday with two corporate deals priced in the high-grade bond market.

“Not a great day to be in the market,” a syndicate source said.

Deal action was led by Jackson National Life Insurance Co. financing arm Jackson National Life Global Funding’s $1.1 billion three-part offering of notes.

Federal Realty Investment Trust priced $400 million in two parts, including an add-on.

Also, Municipality Finance plc priced a $250 million reopening of its floating-rate notes due Feb. 7, 2020.

In the secondary market, Whole Foods Market Inc.’s 5.2% notes due Dec. 3, 2025 (Baa3/BBB-/) have softened more than 10 basis points since Friday to 105 bps bid on Tuesday, a source said.

The notes tightened about 85 bps on Friday to 92 bps bid following the news Amazon.com, Inc. will purchase the natural and organic foods grocer for $13.7 billion in cash.

Bonds from other retailers also have seen impact in secondary trading since the deal was announced, market sources report.

Kroger Co.’s senior notes (Baa1/BBB/BBB) were unchanged on Tuesday but trading about 20 bps to 30 bps wider than issuance, according to a market source.

The Markit CDX North American Investment Grade index closed the day more than 1 bp wider at a spread of 62 bps.

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