Enterprise Products prices new issue, attracts strong investor demand; Bayer bonds firm

By Aleesia Forni

Virginia Beach, Oct. 2 – Enterprise Products Operating LLC came to the primary market with a $2.75 billion offering of notes, while the rest of the high-grade bond market was subdued on Thursday.

Enterprise’s four-part deal was swamped with orders, attracting a book that was nearly four times oversubscribed.

All four tranches of the deal sold on top of talk, which firmed around 10 basis points to 15 bps from initial guidance for the five-, 10- and add-on tranches.

The 40-year tranche was added prior to the deal’s launch.

The new issue comes on the heels of Bayer US Finance LLC’s $7 billion six-part offering of senior notes, which priced on Wednesday.

“Bayer’s deal from yesterday is just doing really well, so that helped [Enterprise],” a market source said.

In the secondary market, the new bonds from Bayer were trading around 6 bps to 10 bps better.

Enterprise’s new bonds were also performing well late Thursday, trading around 2 bps to 3 bps tighter in the aftermarket.

This solid performance comes at the end of what was a volatile week for the high-grade bond market and a weaker tone overall.

Spreads in the secondary market have made up some of their earlier losses, with the Markit CDX North American Investment Grade series 22 index around 3 bps tighter on the week.

The index was unchanged on Thursday at a spread of 64 bps.

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