Tags: corporate | bond | lowes | bhp | billiton

Corporate Bond Issuance Highest Since May

Wednesday, 16 Nov 2011 05:08 PM

 

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink

BHP Billiton Ltd. and Lowe’s Cos. led companies raising $10.7 billion in the corporate bond market Wednesday as issuance this month climbs to the highest level since May.

BHP Billiton, the world’s largest mining company, sold $3 billion of bonds in its first U.S. dollar-denominated offering in more than two years, according to data compiled by Bloomberg. Mooresville, North Carolina-based Lowe’s issued $1 billion of notes a day after Standard & Poor’s cut its credit grade one step to A-, the data show.

Borrowers from Amgen Inc. to Xstrata Plc have issued $88.4 billion of corporate bonds in the U.S. in November, the most since $158.9 billion was sold six months ago, Bloomberg data show. Yields on investment-grade corporate bonds averaged 3.84 percent Tuesday, within 40 basis points of the all-time low 3.45 percent reached in August, according to Bank of America Merrill Lynch index data.

BHP Billiton issued $1 billion of three-year, 1.125 percent notes that yield 85 basis points more than similar-maturity Treasuries, $750 million of five-year, 1.875 percent debt that pays a spread of 110 basis points and $1.25 billion of 10-year, 3.25 percent debentures that pay 135 basis points more than the benchmark, Bloomberg data show. A basis point is 0.01 percentage point. The Melbourne-based company increased the offering from $2 billion.

Lowe’s offering was split evenly between 10-year, 3.8 percent notes that pay a 180 basis-point spread and 30-year, 5.125 percent bonds that pay a spread of 210 basis points, Bloomberg data show. Proceeds may be used for stock buybacks, capital expenditures, acquisitions or working capital, the company said in a Securities and Exchange Commission filing.

S&P lowered its credit grade on Lowe’s from A Tuesday, citing its “more aggressive financial policy,” the ratings company said in a statement. Moody’s Investors Service reduced its rating on Lowe’s two steps to A3 from A1 on Nov. 14.

Statoil ASA and American Express Credit Corp. also sold debt Wednesday, Bloomberg data show.

© Copyright 2014 Bloomberg News. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 

You May Also Like
Around the Web

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved