Oracle, AutoNation, Kellogg, Japan Bank, Canada, Rentenbank price; credit spreads ease

By Cristal Cody

Tupelo, Miss., Nov. 7 – Oracle Corp. led pricing action in the high-grade bond market on Tuesday with a $10 billion five-tranche offering of senior notes.

Oracle priced $1.25 billion of 2.625% notes due 2023, $2 billion of 2.95% notes due 2024, $2.75 billion of 3.25% notes due 2027, $1.75 billion of 3.8% notes due 2037 and $2.25 billion of 4% notes due 2047.

Corporate and SSA supply was strong over the session.

AutoNation Inc. sold $750 million of senior notes in two tranches. AutoNation priced $450 million of 3.5% seven-year notes at 99.876 to yield 3.52% and $300 million of 3.8% 10-year notes at 99.925 to yield 3.809%.

Kellogg Co. brought $600 million of 10-year senior notes to the primary market.

Textron Inc. sold $350 million of three-year floating-rate notes.

Also, Japan Bank for International Cooperation priced $4.5 billion of guaranteed senior bonds in three tranches.

Canada priced $3 billion of five-year global bonds in its first dollar global bond offering since 2015.

In addition, Landwirtschaftliche Rentenbank came with $1.25 billion of 10-year guaranteed senior global notes.

About $30 billion of bond volume is forecast by market sources for this week.

The Markit CDX North American Investment Grade 29 index eased more than 1 basis point on Tuesday to close at a spread of 54 bps.

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