World Bank, S.C. Johnson, BAE Systems price as market tone improves; Abbey National firms

By Aleesia Forni

Virginia Beach, Sept. 30 – The tone of the high-grade bond market was stronger on Tuesday following a weak Monday session that saw no new deals price.

Tuesday’s primary saw new deals price from International Bank for Reconstruction and Development (World Bank), S.C. Johnson & Son Inc. and BAE Systems Holdings Inc.

World Bank came to market with a $4 billion offering of five-year notes, while both BAE Systems and S.C. Johnson were in the market with two-part offerings.

BAE sold its $1.1 billion of 10- and 30-year bonds at the tight end of price talk and attracted an order book that was nearly four times oversubscribed.

Both tranches of S.C. Johnson’s new issue also priced at the tight end of talk.

The session also saw Dexia Credit Local bring a new bond offering to market, though details of the sale were unavailable at press time.

In other market action on Tuesday, MetLife, Inc. sold $1 billion of senior component debentures in two tranches in a remarketing.

In the secondary, spreads rebounded from losses seen during Monday’s session.

The Markit CDX North American Investment Grade series 22 index was 3 basis points tighter at a spread of 64 bps.

Abbey National Treasury Services plc’s $500 million of 1.65% three-year notes, which sold at Treasuries plus 62.5 bps on Wednesday, were quoted 2 bps tighter during the session.

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