High-grade supply thins; Cnooc, Kommunalbanken price notes; Bacardi softens; CVS eases

By Cristal Cody

Tupelo, Miss., April 25 – Two issuers tapped the U.S. high-grade primary market on Wednesday in a mostly quiet session following heavy issuance the previous day.

“The S&P 500 closed down last night – that may have had people taking a pause before jumping in,” a syndicate source said of the light supply.

Cnooc Finance (2015) U.S.A. LLC priced a $1.45 billion two-tranche offering of senior notes.

Kommunalbanken AS sold $1 billion of three-year notes.

The Canadian investment-grade primary market had one deal price from Chartwell Retirement Residences. The company sold C$150 million of 4.211% senior debentures due April 28, 2025 at par to yield a spread of 190 basis points over the interpolated Government of Canada bond curve.

U.S. deal volume is expected to ramp up in May after the bulk of companies exit earnings blackout periods, a source said.

The Markit CDX North American Investment Grade 30 index ended the day slightly tighter at a spread of 62 bps.

In the secondary market, Bacardi Ltd.’s $2.6 billion of guaranteed notes (Ba1/BBB-/BBB-) that priced in four tranches on Tuesday softened 1 bp to 8 bps.

CVS Health Corp.’s 4.3% senior notes due March 25, 2028 eased about 2 bps during the session.

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