Three issuers of primary bonds announced new high grade deals on Tuesday, as credit markets showed resilience despite news of terrorist attacks in Brussels. Individually, Sysco Corporation (A2/BBB+), an American multinational corporation involved in marketing and distributing food products announced a four-part senior deal with three, 10 and 30-year tranches, as well as a long five-year piece. Moreover, guidance was T+90bp for the three-year, T+115bp for the five-year, T+145bp for the 10-year and T+185bp for the 30-year, all plus or minus 5bp. This was well inside initial price thoughts of 110bp, 140bp, 170bp and 210bp.
“These notes will partly finance the firm's acquisition of Brakes Group, which includes repayment of USD2.3bln of Brakes' debt”, according to a banker close to the deal.
Moreover, Citi (Baa1/BBB+/A, an American multinational investment banking and financial services corporation tightened guidance for a five-year senior fixed and/or floating rate deal to 135bp (+/- 2bp) over Treasuries and the equivalent over Libor, 5bp inside IPTs. On the other hand, Comcast, an American multinational mass media company launched a USD350mln tap of its recent senior 2.75% March 2023 bonds and a USD700mln tap of its 3.15% March 2026 bonds, priced at T+75bp and T+90bp respectively.
“These levels were both 10bp inside IPTs, implying a slim single-digit new issue premium”, added the banker.
Lastly, Boyd Gaming Corporation (B3/B-), casino entertainment companies in the United States announcing a USD500mln 10-year non-call five deal.
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