Deal volume thins; Northrop Grumman eyes new bonds; PepsiCo firms; Michael Kors tightens

By Cristal Cody

Tupelo, Miss., Oct. 6 – The high-grade primary bond market stayed quiet on Friday ahead of the long holiday weekend.

Northrop Grumman Corp. (Baa2/BBB/BBB+) held investor calls on Friday for a possible bond offering, a source said.

About $15 billion to $20 billion of deal volume is expected by market participants for the upcoming short week.

Banco Santander, SA plans to hold a roadshow from Wednesday to Oct. 13 for a Rule 144A and Regulation S dollar-denominated offering of senior notes (A3/BBB+/A-), according to a market source.

In the secondary market on Friday, PepsiCo Inc.’s notes (A1/A+/) sold on Thursday traded about 2 basis points tighter.

Michael Kors (USA), Inc.’s 4% guaranteed senior notes due Nov. 1, 2024 priced the previous day to fund the company’s acquisition of shoe maker Jimmy Choo plc tightened about 10 bps from issuance.

Bank and financial paper was mixed on Friday, a source said.

Citigroup Inc.’s 4.125% subordinated notes due July 25, 2028 (Baa3/BBB/A-) traded about 1 bp softer during the session. Citigroup priced a $250 million reopening of the notes on May 3 at a spread of 186 bps over Treasuries.

After firming most of the week, the Markit CDX North American Investment Grade 29 index eased about 1 bp to close the day at a spread of 54 bps.

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