United Technologies Corp.’s $9.8 billion offering, the largest in more than three years, sent U.S. corporate bond sales higher last week even as speculative-grade issuance plummeted to the lowest levels of 2012.
Overall issuance soared 38 percent from the previous week to $19.4 billion while junk bond sales declined 60 percent to $1.9 billion, according to data compiled by Bloomberg. Hartford, Connecticut-based United Technologies, which last tapped the market more than two years ago, sold debt in six portions ranging from 18-month floating-rate notes to 30-year bonds.
McDonald’s Corp., the world’s largest restaurant chain, raised $900 million in a two-part offering on May 23 with the 1.875 percent coupon on its $400 million of seven-year debt matching a record low set by International Business Machines Corp. on May 8, the data show. It also issued three-year notes at 0.75 percent to yield 45 basis points more than similar-maturity Treasuries.