Pricing action slows; Ford Motor Credit, UDR, KfW tap primary market; credit spreads stable

By Cristal Cody

Tupelo, Miss., June 7 – Investment-grade deal action slowed on Wednesday following heavy issuance in the first two sessions of the week.

In corporate supply, Ford Motor Credit Co. LLC priced a $1 billion two-tranche offering of notes.

UDR, Inc. came with $300 million of 10-year medium-term notes.

Also on Wednesday, Toll Brothers Finance Corp. priced a $150 million add-on to its split-rated 4 7/8% senior notes due March 15, 2027 (Ba1/BB+/BBB-) at 103.655 to yield 4.4%, according to market sources.

The yield printed at the tight end of the 4.4% to 4.45% yield talk.

The add-on came in a high-grade execution that was priced in the investment-grade syndicate desk, sources said.

SunTrust Robinson Humphrey Inc. was the lead. Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Mizuho Securities USA LLC, SunTrust and Wells Fargo Securities LLC were the joint bookrunners.

The Horsham, Pa.-based real estate company plans to use the proceeds for general corporate purposes.

In other issuance on Wednesday, KfW brought $1 billion of 18-month senior global notes to the primary market.

In the secondary market, Ford Motor Credit’s existing bonds traded about 1 basis point to 3 bps softer on Wednesday, a source said.

The Markit CDX North American Investment Grade index closed mostly unchanged at a spread of 61 bps.

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