Flowers Foods, Fannie Mae price; Air Liquide tightens; Shire flat to softer; Goldman firms

By Cristal Cody

Eureka Springs, Ark., Sept. 23 – Two high-grade issuers tapped the bond markets on Friday.

Flowers Foods, Inc. priced an upsized $400 million of 10-year senior notes.

Fannie Mae sold a $3.5 billion offering of 10-year Benchmark Notes.

About $25 billion of high-grade deal volume is forecast for the week ahead, sources report.

In the secondary market, Air Liquide SA’s $4.5 billion of senior notes priced in five parts in the previous session traded on Friday about 4 basis points to about 13 bps tighter on the long end.

Shire Acquisitions Investments Ireland DAC’s senior notes headed out flat to about 2 bps softer.

Goldman Sachs Group Inc.’s 1.125% notes due 2021 priced on Thursday traded about 2 bps tighter.

The Markit CDX North American Investment Grade index closed the day about 1 bp weaker at a spread of 77 bps.

Flowers Foods upsizes

Flowers Foods priced an upsized $400 million of 3.5% 10-year senior notes (Baa2/BBB/BBB) at 99.473 to yield 3.563% on Friday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes priced with a spread of 195 bps over Treasuries, at the tightest side of guidance.

The deal was upsized from $300 million.

Deutsche Bank Securities Inc., Wells Fargo Securities LLC, RBC Capital Markets, LLC and SunTrust Robinson Humphrey, Inc. were the bookrunners.

Proceeds will be used to repay debt outstanding under the company’s existing term loan facilities. Any remaining proceeds will be used for general corporate purposes.

Flowers Foods is a Thomasville, Ga.-based bakery company.

Fannie Mae sells $3.5 billion

Fannie Mae priced $3.5 billion of 1.875% 10-year Benchmark Notes at 99.367 to yield 1.945% on Friday, according to a press release.

The notes priced with a spread of 33 bps over Treasuries.

Citigroup Global Markets Inc., Nomura Securities International Inc. and TD Securities (USA) LLC were the lead managers.

Fannie Mae will apply to list the securities on the EuroMTF market of the Luxembourg Stock Exchange.

The mortgage credit provider is based in Washington, D.C.

Air Liquide tightens

Air Liquide’s 2.5% notes due 2026 traded on Friday at 86 bps bid, 83 bps offered, a market source said.

The company priced $1.25 billion of the 10-year notes on Thursday at Treasuries plus 93 bps.

The tranche of 3.5% bonds due 2046 tightened to 105 bps bid, 103 bps offered on Friday.

Air Liquide sold $750 million of the 30-year notes in Thursday’s sale at Treasuries plus 118 bps.

Air Liquide is a Paris-based company that supplies industrial gases and services to industries including medical, chemical and electronic manufacturers.

Shire eases

Shire’s 3.2% notes due 2026 traded softer on Friday at 152 bps bid, 150 bps offered, a market source said.

The company sold $3 billion of the notes (Baa3/BBB-/) on Sept. 19 at a spread of 150 bps over Treasuries.

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

Shire is a biotechnology company based in Dublin.

Goldman firms

Goldman Sachs’ 1.125% notes due 2021 improved to 118 bps bid, 116 bps offered in secondary trading, a market source said.

The company sold $2.25 billion of the five-year notes on Thursday at a spread of 120 bps over Treasuries.

Goldman is a New York-based banking, securities and investment management company.

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