Sunoco sells $2.25 billion; Goodman, Nasdaq tap primary; Kroger steady; Amazon.com firms

By Cristal Cody

Tupelo, Miss., Sept. 19 – Several issuers tapped the high-grade primary market on Tuesday.

Sunoco Logistics Partners Operations LP priced $2.25 billion of guaranteed senior notes in two tranches.

Sunoco sold $750 million of 4% 10-year notes at 99.216 to yield 4.096% and a spread of Treasuries plus 185 bps and $1.5 billion of 5.4% 30-year notes at 99.806 to yield 5.413% and a Treasuries plus 260 bps spread.

Australian property company Goodman Group (Baa1/BBB+/) affiliate Goodman US Finance Three, LLC sold $850 million of notes in two parts.

AEP Texas Inc. raised $700 million in a two-tranche note sale.

Nasdaq, Inc. priced $500 million of floating-rate notes.

The Markit CDX North American Investment Grade 28 index tightened about 1 basis point to close on Tuesday at a spread of 55 bps.

In the secondary market, Kroger Co.’s senior notes (Baa1/BBB/BBB) were mostly unchanged. Fitch Ratings said on Tuesday that it revised the grocer’s outlook to negative from stable.

The retail grocery industry has been impacted since Amazon.com, Inc. closed in August its $13.7 billion cash acquisition of Whole Foods Markets Inc.

Amazon.com’s 3.15% notes due Aug. 22, 2027 priced in August firmed about 3 bps on Tuesday and are trading about 10 bps better than issuance.

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