Monsanto’s (MON) seven-part $4.5 billion debt offering was the largest primary market issuance in the week ended June 27. The $4.5 billion issue was also the company’s largest bond issue ever. The company plans to use the proceeds to fund part of its share repurchase program (Source: Bloomberg). Let’s take a look at other important deals.
Other major domestic corporate issuers last week included Williams Partners’ (WPZ) two-part $1.25 billion notes issue. The company plans to use the proceeds for refinancing commercial paper obligations, funding capital expenditure, and general partnership purposes. Other issuers included Marin Marietta Materials with $700 million and Entergy Gulf States Louisiana with $300 million.
Major financial sector issuers included Toronto-Dominion Bank with $1.75 billion, Metropolitan Life Global Funding with $800 million, and Legg Mason with $650 million. The latter two issuers and Monsanto are part of the S&P 500 Index (IVV).
Secondary market trends
Investment-grade mutual funds recorded net inflows for the second consecutive week. Investors pumped in ~$1.5 billion in the week ended June 25. But this was down about 24% compared to the previous week’s net inflows estimated at about $1.96 billion. Year-to-date flows in investment-grade mutual funds as of June 25 were estimated at $42.1 billion (Source: Lipper).
A look at yields
In the next part of this series, we’ll analyze the yields, spreads, and returns on investment-grade corporate bonds over the week. Read on to find out more.