Supply heavy; UnitedHealth, Deutsche, Concho, CME, GM Financial, Digital Realty among issuers

By Cristal Cody

Tupelo, Miss., June 14 – The high-grade bond market saw heavy new issue volume in Thursday’s session.

Issuers during the day included UnitedHealth Group Inc., Deutsche Telekom International Finance BV, Concho Resources Inc., CME Group Inc., General Motors Financial Co. Inc., Public Service Co. of Colorado, Digital Realty Trust LP, Lloyds Banking Group plc, Dominion Energy Gas Holdings, LLC and Ryder System, Inc.

More than $12 billion of investment-grade bonds priced in the first two sessions of the week, then issuance stayed quiet on Wednesday ahead of the Federal Reserve’s announcement of a 25-basis point rate hike.

Syndicate sources forecasted about $15 billion to $20 billion of total supply for the week.

UnitedHealth Group (A3/A+/A) sold $4 billion of notes in five tranches on Thursday, according to a market source.

The company priced $350 million of three-year floating-rate notes at Libor plus 26 bps.

UnitedHealth sold $400 million of 3.15% three-year with a spread of 48 bps over Treasuries.

A $750 million tranche of 3.5% five-year notes priced at a spread of 70 bps over Treasuries.

A $1.15 billion offering of 3.85% 10-year notes came at a Treasuries plus 93 bps spread.

In the final tranche, the company sold $1.35 billion of 4.25% 30-year bonds at a spread of 123 bps over Treasuries.

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