High-grade supply quiet; Dollar Tree eases, Dollar General flat ahead of earnings reports

By Cristal Cody

Tupelo, Miss., May 29 – The investment-grade primary market stayed quiet on Wednesday in a risk-off market environment.

Deal volume week to date has been led by MasterCard Inc.’s $2 billion two-part sale of fixed-rate notes on Tuesday. The bond markets were closed on Monday for the Memorial Day holiday.

High-grade companies priced more than $3 billion of notes on Tuesday.

About $10 billion to $15 billion of supply is expected this week, according to syndicate sources.

A dollar-denominated Rule 144A and Regulation S offering of senior notes is in the pipeline from Unibail-Rodamco-Westfield SE, which held fixed income investor calls on Tuesday for the deal.

In new issue secondary trading, Southwest Gas Corp.’s 4.15% senior notes due June 1, 2049 (A3/BBB+/A) priced on Tuesday improved about 3 bps, a source said.

The Las Vegas-based natural gas distributor sold $300 million of the notes at a spread of 145 bps over Treasuries.

Meanwhile, Dollar Tree Inc.’s senior notes (Baa3/BBB-/) softened ahead of the release of the company’s first quarter earnings report before the market opens on Thursday.

Dollar General Corp.’s 4.125% senior notes due May 1, 2028 (Baa2/BBB/) were unchanged in secondary trading on the eve of the company’s first quarter earnings release.

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