Morning Commentary: Novartis, Boeing in deal pipeline; Apple bonds mixed; Goldman Sachs softens

By Cristal Cody

Tupelo, Miss., Feb. 14 – Novartis Capital Corp. and Boeing Co. each announced plans on Tuesday to price three-part offerings of notes.

Apple Inc. announced it sold $1 billion of 4.3% 30-year notes at par on Tuesday.

The company’s older notes (Aa1/AA+), which priced at the start of February, were mixed in the secondary market.

Goldman Sachs Group Inc.’s notes (A3/A), which were reopened on Monday, traded weaker as the session opened on Tuesday.

On Monday, $16.6 billion of investment-grade issues were traded, according to Trace.

Apple mixed

Apple’s 3.5% notes due Feb. 9, 2027 weakened on Tuesday morning to 100.15 from where the notes last traded on Monday at 100.79, according to a market source.

The company sold $2.25 billion of the notes on Feb. 2 at par, or a spread of Treasuries plus 88 basis points.

Apple’s 4.25% notes due Feb. 9, 2047 traded up to 101.47 early Tuesday from 101.13 on Monday.

The $1 billion tranche of bonds was priced in the Feb. 2 offering at 99.798 to yield 4.262%, or Treasuries plus 115 bps.

The computer and mobile communications device company is based in Cupertino, Calif.

Goldman weakens

Goldman Sachs’ 3% notes due April 26, 2022 opened weaker at 99.42 in the secondary market on Tuesday, a market source said.

Godman Sachs priced $1 billion of the five-year notes in a reopening on Monday at 99.711 to yield 3.061%, or 115 bps over Treasuries.

The tranche originally priced in a $2.25 billion offering on Jan. 23 at 99.68 to yield 3.067%, or 120 bps over Treasuries.

Goldman Sachs’ 3.85% notes due Jan. 26, 2027 softened to 99.88 early Tuesday from where the notes headed out in the previous session at 100.18.

The company sold $1.25 billion of the 10-year notes in a reopening on Monday at 100.146 to yield 3.832% and a spread of Treasuries plus 140 bps.

Goldman Sachs originally sold $1.75 billion of the 10-year notes on Jan. 23 at 99.72 to yield 3.884%, or Treasuries plus 148 bps.

The banking, securities and investment management company is based in New York.

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