High-grade issuers price $26 billion including Chevron, GM, Leidos, Discovery, Zoetis

By Cristal Cody

Tupelo, Miss., May 7 – Investment-grade supply blew past market forecasts with more than $26 billion of bonds priced on Thursday, pushing week-to-date volume to over $81 billion.

The pace is putting May on track for a third consecutive month of record deal volume, according to market sources.

During Thursday’s session, Chevron Corp. priced $8 billion of senior notes in seven tranches.

General Motors Co. sold $4 billion of senior notes in three tranches.

Discovery Communications, LLC priced a $2 billion two-part offering of notes.

Citigroup Inc. brought $1.5 billion of four-year green fixed-to-floating-rate senior notes.

Zoetis Inc. sold $1.25 billion of notes in two tranches.

Leidos Holdings Inc. placed $1.75 billion of notes in three tranches tighter than guidance in a Rule 144A and Regulation S offering.

Global Payments Inc. priced $1 billion of 10-year senior notes on Thursday, 25 basis point tighter than talk.

Vulcan Materials Co. came by with $750 million of 10-year notes.

Federal Realty Investment Trust priced $700 million of notes in two tranches, including an add-on.

Mohawk Industries, Inc. sold $500 million of 10-year senior notes at the wide side of price talk.

Owens Corning priced $300 million of 10-year senior notes.

Also during the session, the International Bank for Reconstruction and Development, or World Bank, priced $4 billion of 10-year global notes.

HSBC Bank Canada priced a $1 billion Rule 144A and Regulation S offering of three-year covered bonds.

About $60 billion to $75 billion of volume was expected for the week.

Investment-grade corporate funds inflows revved up to $6.63 billion for the past week ended Wednesday from $2.25 billion in the previous week and $2.15 billion of inflows in the prior week, according to Refinitiv Lipper US Fund Flows.

Credit spreads recovered more than 2 bps on Thursday after softening over 4 bps on Wednesday.

The Markit CDX North American Investment Grade 33 index closed the day at a spread of 91.02 bps.

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