Kommuninvest upsizes; light supply forecast; Takeda mixed; GATX firms; Comcast eases

By Cristal Cody

Tupelo, Miss., Nov. 21 – Kommuninvest I Sverige AB priced an upsized $1.25 billion of long three-year notes on Wednesday on the tight side of initial talk.

Otherwise, market activity was light with no corporate issuance and offices thinly staffed ahead of the Thanksgiving Day holiday on Thursday and early market close on Friday.

Little if any supply is expected over the remainder of the week, according to market sources.

On Tuesday, no corporate issuers tapped the primary market. In SSA supply, HSBC Bank Canada brought an inaugural $750 million offering of mortgage covered bonds.

High-grade corporate issuers priced $6 billion of bonds on Monday in deals that were led by Takeda Pharmaceutical Co., Ltd.’s $5.5 billion four-part sale of senior notes.

About $5 billion to $10 billion of investment-grade volume was expected by market sources for the week.

Looking ahead, syndicate sources said supply in the upcoming week is dependent on market tone with a number of deals waiting in the pipeline. About $10 billion to $20 billion of volume in the week ahead is expected.

In the secondary market, Takeda Pharmaceutical’s senior notes priced to help finance its acquisition of Irish drug maker Shire plc were mixed on Wednesday. The notes on the short end tightened about 1 basis point to 2 bps, while the 10-year tranche softened 2 bps.

GATX Corp.’s floating-rate senior notes due Nov. 5, 2021 reopened on Monday improved in secondary trading.

In other trading on Wednesday, Comcast Corp.’s senior notes (A3/A-/A-) that priced as part of a $27 billion 12-tranche offering in October eased about 1 bp after widening about 6 bps in the previous session.

Kommuninvest prices

Kommuninvest I Sverige (Aaa/AAA) priced $1.25 billion of 3% long three-year notes on Wednesday at mid-swaps plus 6 bps, or a Treasuries plus 23.3 bps spread, according to a market source.

The notes due March 23, 2022 were initially talked to price in the mid-swaps plus 7 bps area.

The deal was upsized from $1 billion and had a final book size of more than $1.6 billion.

Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc. and Nomura Securities International, Inc. were the bookrunners for the Rule 144A and Regulation S offering.

Kommuninvest is an Orebro-based company that offers funding to municipalities of Sweden.

Takeda notes mixed

Takeda Pharmaceutical’s 4.4% notes due Nov. 26, 2023 traded at 154 bps bid, 150 bps offered in the secondary market on Wednesday, a source said.

The company (A2/A-) sold $1.5 billion of the five-year notes on Monday at a Treasuries plus 155 bps spread.

Takeda’s $1.75 billion of 5% notes due Nov. 26, 2028 eased to 202 bps bid, 198.5 bps offered. The notes priced at a spread of 200 bps over Treasuries.

The pharmaceutical company is based in Osaka, Japan.

GATX tightens

GATX’s floating-rate senior notes due Nov. 5, 2021 (Baa2/BBB) tightened to Libor plus 65 bps bid, Libor plus 60 bps offered in secondary trading, a market source said.

The company priced a $100 million add-on to the floaters on Monday at 99.51.

The notes have a coupon of Libor plus 72 bps.

GATX originally sold $200 million of the notes on Nov. 2, 2017 at par to yield Libor plus 72 bps. The total outstanding is $300 million.

GATX is a transportation leasing company based in Chicago.

Comcast eases

Comcast’s 4.7% notes due Oct. 15, 2048 eased about 1 bp on Wednesday to 158 bps bid, a market source said.

The notes traded about 6 bps wider at 157 bps bid on Tuesday.

In price, Comcast’s 4.7% notes due Oct. 15, 2048 improved to 98.12 on Wednesday from where the notes went out on Tuesday down nearly 1 point at 97.19.

The notes were slightly better over the morning at 98.24.

Comcast sold $4 billion of the 30-year bonds on Oct. 12 at 99.918 to yield 4.705%, or a spread of 150 bps over Treasuries.

The media and technology company is based in Philadelphia.

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