Southwest, RBC, AerCap, Steel Dynamics, FirstEnergy, Harley-Davidson price; Amazon.com firms

By Cristal Cody

Tupelo, Miss., June 3 – Investment-grade corporate and sovereign, supranational and agency issuers priced more than $11 billion of bonds over Wednesday’s session.

Southwest Airlines Co. sold $1.8 billion of senior notes (Baa1/BBB/BBB+) in two tranches, including a tap of its 4.75% notes due May 4, 2023 and a new seven-year tranche.

Royal Bank of Canada brought $1.5 billion of five-year senior medium-term notes (A2/A/AA) to the primary market.

AerCap Ireland Capital DAC and AerCap Global Aviation Trust priced $1.25 billion of five-year guaranteed senior notes (Baa3/BBB/BBB-) over the day.

Steel Dynamics, Inc. sold $900 million of fixed-rate senior notes (Baa3/BBB-/BBB) in two tranches.

Service Properties Trust priced an upsized $800 million issue of split-rated five-year senior notes (Baa3/BB+) tighter than initial talk.

FirstEnergy Corp. sold $750 million of senior notes (Baa3/BBB-/BBB) in two parts.

Harley-Davidson Financial Services, Inc. priced $700 million of five-year senior medium-term notes (Baa2/BBB/A-) in a Rule 144A and Regulation S offering.

Seagate Technology plc subsidiary Seagate HDD Cayman also tapped the primary market with a Rule 144A and Regulation S deal. The company sold $500 million of senior notes due Jan. 15, 2031 (Baa3/BBB-/BBB-).

Looking at SSA deal action, the Council of Europe Development Bank (Aa1/AAA/AA+) priced $500 million of three-year global Covid-19 response social inclusion notes.

Also, CDP Financial Inc. (Aaa/AAA/AAA) sold $2.5 billion of five-year senior notes on Wednesday.

More than $39 billion of high-grade bonds have priced week to date, led by a $10 billion six-tranche offering of notes from Amazon.com, Inc. (A2/AA-/A+) on Monday.

About $30 billion to as much as $50 billion of investment-grade issuance is expected by market participants for the week.

Credit spreads came in nearly 5 basis points on Wednesday. The Markit CDX North American Investment Grade 33 index closed the day at a spread of 71.66 bps.

In the secondary market, Amazon.com’s senior notes traded about 5 bps to 8 bps tighter than issuance across the tranches, a source said.

The company’s 1.5% notes due June 3, 2030 firmed about 5 bps.

The 10-year issue was priced in a $2 billion tranche at 99.889 to yield 1.512%, or a Treasuries plus 85 bps spread.

Initial talk was in the Treasuries plus 105 bps area.

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