(Bloomberg) -- Exxon Mobil Corp. and Verizon Communications Inc. are leading the foray back into the debt capital markets Tuesday, seizing a window only open to the highest-quality borrowers.
The companies are the first to tap the U.S. investment-grade market since Friday as borrowers reassess market conditions following a deepening of the global sell-off Monday. PepsiCo Inc. and Oncor Electric Delivery Co. soon followed, as credit derivatives indexes and stock futures indicated a more positive tone. There were four issuers offering debt deals as of 8:50 a.m. in New York.
Read more:
- NEW DEAL: Exxon USD Debt Offering in 5 Parts
- NEW DEAL: Verizon $Bmark; 7Y +230a, 10Y +240a, 30Y +270a
- NEW DEAL: PepsiCo $Benchmark Debt Offering in 6 Parts
- NEW DEAL: Oncor Electric Delivery $800m 1st Lien; 10Y, 30Y
Primary markets have been mostly shut in the last few weeks as the coronavirus outbreak has amplified risk premiums and tips the economy closer to recession. Investment-grade spreads have nearly doubled in less than two weeks, and the high-yield market hasn't had a deal price since March 4.
The opportunities to bring new offerings have been few and often far between, but only open to the safest of borrowers. Verizon and Exxon are both frequent, relatively high-rated issuers, even with the oil company coming off of its first downgrade by S&P Global Ratings since 2016. Three borrowers came forward on Friday, led by the defensive utility sector.
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