Morning Commentary: Flowers Foods in deal pipeline; Shire notes flat; credit spreads steady

By Cristal Cody

Eureka Springs, Ark., Sept. 23 – Investment-grade supply on Friday is expected to include a senior notes offering from Georgia bakery Flowers Foods, Inc.

The company is marketing the bonds via bookrunners Deutsche Bank Securities Inc., Wells Fargo Securities LLC, RBC Capital Markets, LLC and SunTrust Robinson Humphrey, Inc.

In the secondary market, Shire Acquisitions Investments Ireland DAC’s 3.2% senior notes due 2026 that priced at the start of the week traded wrapped around their issuance price.

The Markit CDX North American Investment Grade index opened mostly unchanged at a spread of 76 basis points.

The three-month Libor yield was down 1 bp to 86 bps on Friday.

Investment-grade secondary bond volume was $18.48 billion on Thursday, compared to $16.3 billion on Wednesday, $19 billion on Tuesday and $14.5 billion on Monday, according to Trace.

Shire notes trade flat

Shire’s 3.2% notes due 2026 traded mostly wrapped around issuance in the secondary market at the 150 bps area, a source said.

The company sold $3 billion of the notes (Baa3/BBB-) on Monday at a spread of 150 bps over Treasuries.

The notes are fully and unconditionally guaranteed by parent company Shire plc.

Shire is a global biotechnology company based in Dublin.

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