Morning Commentary: Bayer megadeal firms in secondary; broader bond market spreads tighter

By Aleesia Forni

Virginia Beach, Oct. 2 – Spreads in the high-grade secondary market tightened at mid-morning on Thursday, while tranches of Bayer US Finance LLC’s new $7 billion six-part offering of senior notes traded better.

The Markit CDX North American Investment Grade series 22 index was 1 basis point tighter at a spread of 64 bps.

Bayer’s $850 million tranche of 1.5% three-year notes, which sold at Treasuries plus 55 bps on Wednesday, was quoted 9 bps better at 46 bps bid, 43 bps offered.

The company’s recently priced $2 billion of 2.375% five-year notes traded 6 bps better at 74 bps bid, a trader said.

The notes sold with a spread of Treasuries plus 80 bps.

Bayer’s $1.5 billion of 3% notes due 2021, which priced at Treasuries plus 90 bps, traded 10 bps better at 80 bps bid, 78 bps offered.

The company’s $1.75 billion of 3.375% 10-year notes were quoted at 100 bps offered following Wednesday’s pricing at Treasuries plus 110 bps.

The German chemical and pharmaceutical company is based in Leverkusen.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.