Reckitt Benckiser, Westpac Banking, Owens Corning, Suntory price; Kroger notes soften

By Cristal Cody

Tupelo, Miss., June 21 – High-grade pricing action picked up on Wednesday, led by Reckitt Benckiser Treasury Services plc’s $7.75 billion four-tranche offering of senior notes.

Westpac Banking Corp. also tapped the primary market with $1.5 billion of five-year fixed- and floating-rate notes.

Owens Corning came to market with $600 million of 30-year senior notes.

Also, Suntory Holdings Ltd. priced $600 million of five-year senior notes.

The Markit CDX North American Investment Grade index eased nearly 1 basis point to close at a spread of 63 bps.

In secondary trading, Kroger Co.’s senior notes (Baa1/BBB/BBB) softened about 1 bp to 3 bps on Wednesday, according to a market source.

The 2.65% notes due Oct. 15, 2026 eased 1 bp to 137 bps bid. Kroger sold $750 million of the notes on Sept. 26, 2016 at a spread of 110 bps over Treasuries.

Kroger’s 4.45% notes due Feb. 1, 2047 traded 3 bps wider at 183 bps bid. The Cincinnati-based grocery retailer sold $1 billion of the bonds on Jan. 17 at a spread of 150 bps over Treasuries.

Whole Foods Market Inc.’s 5.2% notes due Dec. 3, 2025 (Baa3/BBB-/) were unchanged at 105 bps bid on Wednesday.

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

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