Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  Kellogg Company    K

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

High-Grade Companies Sell $3.1 Billion, Sentiment Weakens

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/14/2012 | 11:23pm CET
   By Patrick McGee 
   Of  
 

High-grade corporate issuers sold $3.1 billion of new debt Monday despite continued deterioration in sentiment and a broad market selloff.

Kellogg Co. (>> Kellogg Company) led the way with a three-part, $1.45 billion issue aimed at raising funds in connection with its $2.7 billion acquisition of potato chip maker Pringles.

The cereal maker's deal comprised three-, five-, and 10-year maturities offering yields of 1.165%, 1.864%, and 1.774%, respectively, or 0.80, 1.15, and 1.45 percentage points over comparable Treasurys.

The five- and 10-year coupons of 1.75% and 3.125%, respectively, were record lows for the company, according to Standard & Poor's LCD.

Among smaller deals, waste collector Republic Services (>> Republic Services, Inc.) issued $850 million to redeem some 2017 bonds, Cameron International (>> Cameron International Corporation) sold $500 million to acquire a drilling equipment business from TTS Group ASA (TTS.OS), and Westar Energy expanded a prior debt issue by $300 million.

The four deals came on a day when broader sentiment was unraveling for a second session. Markit's CDX North America Investment-Grade Index, a barometer of corporate bond sentiment, worsened by more than 5%, again, to a fresh four-month low, one of the worst back-to-back sessions of 2012.

Individual bonds weakened substantially while safe-haven assets rallied, as reflected by the six-basis-point drop in the 10-year Treasury bond yield. The weakening was led by bank bonds, which are selling off in the fallout of J.P. Morgan (>> JPMorgan Chase & Co.) last Thursday projecting a $2 billion trading loss related to derivatives.

J.P. Morgan's 4.5% 2022 bond widened 8 basis points Monday to 204, among its highest since late February, according to MarketAxess.

Goldman Sachs Group (>> Goldman Sachs Group, Inc.) bonds did worse, as spreads on its 5.75% 2022 bond widened 15 basis points to 347, contributing to a 31-basis-point deterioration month-to-date.

But with corporate bond trading at record low yields last week, the market still proved enticing to borrowers. Syndicate desks are projecting around $20 billion could be issued this week as borrowers take advantage of low yields.

One syndicate manager who was surprised by the number of deals Monday was confident in the morning that demand would be strong.

"The deals have enough concession or enough quality to the name to get done," he said. "The truth is, a lot of investors have money to put to work."

-By Patrick McGee, Dow Jones Newswires; 212-416-2382; patrick.mcgee@dowjones.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on KELLOGG COMPANY
03/23 KELLOGG : Eight Out Of Ten Women Feel They Have Not Reached Their Full Potential
03/23 SHOPRITE : Nutrition counseling, wellness
03/23 KELLOGG : CloudCraze selects the eureQa Automation Platform for Automated Testin..
03/14 NOSTALGIA : the yearning that will continue to carry the Trump message forward
03/09 KELLOGG : Jimmy Butler, Simone Biles And Kellogg's® Show Off Their Trick Shots T..
03/09 KELLOGG : Supports 10,000 Women Farmers to Reach their Full Potential
03/06 KELLOGG : Consumer research facility to show off new space
03/04 KELLOGG : Shares Sold by Metropolitan Life Insurance Co. Ny
03/03 KELLOGG : Jimmy Butler, Simone Biles And Kellogg's® Show Off Their Trick Shots T..
03/03 KELLOGG : Cheez-It & Pringles Named Official Snacks of Major League Soccer; Kell..
More news
Sector news : Food Processing - NEC
12:38a JBS : EU asks Brazil to suspend meat shipments amid scandal - sources
03/23DJJBS : Cuts Beef Production as Brazilian Officials Try to Reopen Export Markets -..
03/23 Verizon, AT&T suspend ads from Google over offensive videos
03/23DJJBS : Brazil's Government Racing to Convince Skittish Markets Meat is Safe
03/22DJJBS : Brazil's Government Racing to Convince Skittish Markets Meat is Safe
More sector news : Food Processing - NEC
News from SeekingAlpha
03/22 Kellogg Looks Way Overvalued
03/22 Kellogg - An Overpriced Dividend Achiever
03/21 Food stocks in focus after latest research
03/07 KELLOGG COMPANY : Down 16% From Its High And Still Too Expensive
03/02 Can 20 Financial Ratios Be Used To Find Dividend Growth Companies That Outper..
Advertisement
Financials ($)
Sales 2017 12 692 M
EBIT 2017 2 105 M
Net income 2017 1 301 M
Debt 2017 7 546 M
Yield 2017 2,93%
P/E ratio 2017 19,86
P/E ratio 2018 17,40
EV / Sales 2017 2,60x
EV / Sales 2018 2,56x
Capitalization 25 452 M
More Financials
Chart KELLOGG COMPANY
Duration : Period :
Kellogg Company Technical Analysis Chart | K | US4878361082 | 4-Traders
Full-screen chart
Technical analysis trends KELLOGG COMPANY
Short TermMid-TermLong Term
TrendsBearishNeutralBearish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 19
Average target price 81,3 $
Spread / Average Target 12%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
John A. Bryant Chairman & Chief Executive Officer
Fareed A. Khan Chief Financial Officer
Brian S. Rice Chief Information Officer & Senior Vice President
Gary H. Pilnick Vice Chairman, Chief Legal Officer & Secretary
John T. Dillon Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
KELLOGG COMPANY-1.36%25 452
NESTLE SA5.54%241 421
KRAFT HEINZ CO5.69%112 329
MONDELEZ INTERNATIONAL..-0.74%67 171
DANONE6.26%45 311
GENERAL MILLS, INC.-4.58%33 957
More Results