PepsiCo, Texas Instruments, Reliance, FS Investment price; AT&T bonds firm in secondary

By Aleesia Forni

Virginia Beach, April 27 – New deals from PepsiCo Inc., Texas Instruments Inc., Reliance Standard Global Funding II and FS Investment Corp. got the new week off to a solid start on Monday, with $3,675,000,000 of new issuance pricing during the session.

PepsiCo was in the market with $2.5 billion of senior notes in four tranches.

The deal garnered around $7 billion of orders, with the three-year notes attracting the largest bid-to-cover rate.

All tranches sold tight of initial price thoughts.

Texas Instruments priced its new $500 million offering of five-year notes at the tight end of price guidance.

Both FS Investment and Reliance were in the market with upsized new issues on Monday, each pricing at the tight end of price talk.

Around $25 billion of new issuance is expected to hit the investment-grade primary market this week.

In other market action on Monday, investment-grade bond spreads firmed to open the week.

The Markit CDX North American Investment Grade series 23 index was 1 basis point tighter at a spread of 60 bps.

Tranches of PepsiCo’s new offering traded 2 bps to 4 bps tighter in the aftermarket.

Meanwhile, Texas Instruments’ new five-year notes traded around 1 bp better late Monday.

AT&T Inc.’s recently priced $17.5 billion megadeal widened slightly compared to levels seen on Friday.

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