Tesco, National Fuel Lead Bond Sale in Busiest Month Since May
Stock Chart for Tesco PLC (TSCO)
Tesco Plc (TSCO), the U.K.’s largest supermarket chain, sold $1 billion of bonds today in its first dollar sale in four years as yields hovering within 60 basis points of a record low drive the most U.S. corporate debt offerings since May.
Tesco issued $500 million of 2 percent, three-year notes and $500 million of 2.7 percent, five-year notes, according to data compiled by Bloomberg. National Fuel Gas Co. (NFG) and Pacific Gas and Electric Co. also issued debt today as offerings rose to at least $1.75 billion.
Companies have raised at least $98.6 billion of bonds this month as borrowing costs have held within 60 basis points of the record low of 3.45 percent reached in August, according to Bank of America Merrill Lynch index data. Yields of 4 percent on Nov. 25 have tumbled from 4.15 percent on Oct. 11, the data show. Cheshunt, England-based Tesco last tapped the U.S. market in October 2007, issuing $2 billion of bonds in its biggest dollar debt offering, according to data compiled by Bloomberg.
Pacific Gas & Electric sold $250 million of 4.5 percent, 30-year bonds and Williamsville, New York-based National Fuel Gas issued $500 million of 4.9 percent, 10-year notes, Bloomberg data show.
Canadian Pacific Railway Ltd. said it’s offering senior unsecured debt to fund a voluntary prepayment to the Calgary- based company’s pension plan, according to a statement distributed by PR Newswire today.
Borrowers issued $159 billion of corporate bonds in May, Bloomberg data show.
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