High-grade issuance quiet; Eversource Energy tightens; Bayer, Dow Chemical notes soften

By Cristal Cody

Tupelo, Miss., Dec. 11 – The high-grade primary market stayed quiet on Tuesday with market sources expecting the bulk of issuance to have wrapped up for the year.

Other than a few small deals here and there, issuers are reportedly waiting until 2019 to print.

On Monday, Eversource Energy and Mercy Health priced a combined $1.2 billion of investment-grade notes.

The Markit CDX North American Investment Grade 31 index firmed about 2 basis points to close the day at a spread of 80 bps.

In the secondary market, Eversource Energy’s new 4.25% notes due April 1, 2029 (Baa1/A/BBB+) tightened 5 bps, a source said.

The company sold $500 million of the notes on Monday at a spread of Treasuries plus 147 bps. Price guidance was in the Treasuries plus 150 bps area, plus or minus 3 bps.

Bayer AG’s notes that priced earlier in the year through issuer Bayer US Finance II LLC traded about 5 bps weaker to as much as 12 bps tighter on Tuesday. The company’s notes have widened more than 40 bps since pricing in June.

Dow Chemical Co.’s 4.8% senior notes due Nov. 30, 2028 softened 1 bp during the session and more than 10 bps from where the issue priced last month.

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