High-Grade Corporate Borrowers Rush Back To The Bond Market
03 Novembre 2011 - 5:12PM
Dow Jones News
Corporate borrowers returned to the debt markets in droves
Thursday offering nearly $6 billion of new bonds, fearing sessions
earlier in the week were too volatile and next week may be too
crowded.
Medical devices maker Becton, Dickinson and Co. (BDX) led the
charge, offering $1.5 billion of 5- and 10-year senior notes.
Toothpaste and cosmetics maker Colgate-Palmolive Co. (CL) was close
behind, with $1 billion of 3-, 5- and 10-year securities.
One syndicate manager said the day's tally could reach as high
as $9 billion, but as of mid-morning many deals had not been
sized.
Demand is strong because money managers have lots of cash on
hand and are under pressure to put it to work in investments that
earn decent returns but are still safe, he said. Issuers,
meanwhile, are eager to borrow while rates are still low and
investors view bonds as a safer alternative to unpredictable stocks
and other volatile assets.
Issuance exploded last week after European policy makers
announced a rescue deal for Greece, but optimism about the
viability of that plan soon faded. Corporate borrowers sold $13.7
billion of bonds last week, according to data provider Dealogic, in
an end-of-month burst that brought the monthly total to $45.2
billion.
Issuance levels "experienced a resurrection at the end of
October as spreads narrowed sharply and yields fell on hopes of a
resolution of the European sovereign crisis," David Munves,
divisional managing director at Moody's Capital Markets Research
Inc., wrote in a note Thursday.
Other recent big-volume days for corporate debt sales include
$7.4 billion on Oct. 12 and $12.3 billion on Sept. 14, Dealogic
data show.
In addition to the offerings from Becton, Dickinson and
Colgate-Palmolive, new issues Thursday include a three-part,
minimum $500 million sale for Cigna Corp. (CI) to help fund its
$3.8 billion acquisition of HealthSpring Inc. (HS); and a two-part
$600 million deal for toymaker Mattel Inc. (MAT) to help fund its
$680 million acquisition of HiT Entertainment from a consortium led
by Apax Partners funds.
Also on deck is a four-part benchmark deal for a unit of mining
giant Xstrata Plc (XTA.LN); a $500 million, 10-year deal for
privately held food and agricultural products maker Cargill Inc.; a
$400 million sale of 7-year debt for the commercial real-estate
firm Boston Properties Inc.(BXP); and a $250 million deal for
Tucson Electric Power Co., a unit of UniSource Energy Corp.
(UNS).
-By Katy Burne, Dow Jones Newswires; 212-416-3084;
katy.burne@dowjones.com
Grafico Azioni Healthspring (NYSE:HS)
Storico
Da Ago 2024 a Set 2024
Grafico Azioni Healthspring (NYSE:HS)
Storico
Da Set 2023 a Set 2024