High-grade primary busy; Mizuho, Nomura, Simon, Caterpillar, Jabil, PVH, Realty Income price

By Cristal Cody

Tupelo, Miss., July 6 – Investment-grade action revved up on Monday following the Independence Day holiday with more than $12 billion of bonds priced over the session.

Mizuho Financial Group, Inc. sold $2.5 billion of senior notes (A1/A-/) in three tranches in the first diversity and inclusion bond offering by a Japanese bank.

The deal included floating-rate notes and two tranches of fixed-to-floating-rate notes.

Nomura Holdings Inc. priced $2.5 billion of fixed-rate senior notes (Baa1/BBB+/) in two tranches over the day.

The deal included $1.5 billion of five-year notes and $1 billion of 10-year notes.

Simon Property Group LP came by with $2 billion of new issue and reopened notes (A2/A/) in three parts.

The company priced a $500 million add-on to its 3.5% notes due Sept. 1, 2025 and sold new $750 million tranches each of 10- and 30-year notes.

Also, American Honda Finance Corp. priced $2 billion of three- and five-year medium-term notes (A3/A-/) in two tranches on Monday.

Caterpillar Financial Services Corp. brought $1.5 billion of senior medium-term notes (A3/A/A) in two parts during the session, including floating-rate notes due Jan. 6, 2022 and three-year fixed-rate notes.

Jabil Inc. sold $600 million of senior notes due Jan. 15, 2031 (Baa3/BBB-/BBB-) during the session.

PVH Corp. placed $500 million of five-year senior notes (Baa3/BBB-/) in a Rule 144A and Regulation S offering upsized from $400 million.

National Bank of Canada (A3/A/A+) tapped the primary market with $500 million of three-year notes.

Realty Income Corp. returned to the market on Monday with a $350 million reopening of its 3.25% senior notes due Jan. 15, 2031 (A3/A-/BBB+) that were first priced in May.

About $20 billion to $25 billion of volume is expected this week after about $15 billion of bonds priced ahead of the holiday, according to syndicate sources.

Market tone was positive as the week kicked off.

The Markit CDX North American Investment Grade 33 index closed the day at a spread of 71.86 basis points, about 2 bps tighter from Thursday.

The iShares iBoxx Investment Grade Corporate Bond ETF improved 0.26% to 135.4.

The PIMCO Investment Grade Corporate Bond Index rose 0.3% to 114.8.

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