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Rogers Communications

Busy Session for Corporate Bond Sales

Five highly rated companies sold a combined $12.5 billion of bonds in the third-busiest session of the year on Thursday.The spate of deals was led by international mining company Freeport-McMoRan Copper & Gold Inc. (FCX), which priced a $6.5 billion deal to fund the acquisition of Plains Exploration & Production Co. (PXP), a purchase announced late last year.Coca-Cola Co. (KO) placed a $2.5 billion deal, priced in three parts including five- and 10-year bonds yielding 1.194% and 2.546%, respectively. Demand was so strong that its two-year floating-rate tranche will pay investors 0.02 percentage point less than the three-month London interbank offered rate, or Libor, which is currently 0.29%. It is just the second company, after Walt Disney Co. (DIS) on Feb. 12, to sell bonds below the Libor rate this year.Floating-rate bonds feature interest payments that reset every quarter. If interest rates rise this year--as many are expecting--so do floating-rate bond payments. By contrast, the in...

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