AbbVie, Chevron, Burlington Northern, Grainger price; bonds mixed; spreads mostly flat

By Cristal Cody

Eureka Springs, Ark., May 9 – Investment-grade primary action roared to life on Monday with issuance heavy in the non-financial sector.

AbbVie Inc. priced $7.8 billion of senior notes in five tranches.

The company sold $1.8 billion of 2.3% five-year notes with a spread of 120 basis points over Treasuries, $1 billion of 2.85% seven-year notes at 135 bps plus Treasuries, $2 billion of 3.2% 10-year notes with a spread of 150 bps over Treasuries, $1 billion of 4.3% 20-year bonds at Treasuries plus 175 bps and $2 billion of 4.45% 30-year bonds at 190 bps plus Treasuries.

Chevron Corp. sold $6.8 billion of senior notes in six parts over the day.

Burlington Northern Santa Fe, LLC brought $750 million of 30-year senior debentures.

Waste Management, Inc. priced $500 million of seven-year senior notes.

W.W. Grainger, Inc. printed $400 million of 30-year senior notes during the session.

About $45 billion or more of high-grade volume is expected over the week.

In the secondary market, BNP Paribas SA’s 5.2% notes due 2026 were seen 2 basis points tighter earlier in the day.

Time Warner Inc.’s 2.95% notes due 2026 traded 1 bp better.

General Motors Financial Co. Inc.’s 3.7% senior notes due 2023 were flat to 1 bp weaker.

The Markit CDX North American Investment Grade series 23 index ended the day mostly unchanged at a spread of 85 bps.

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