Morning Commentary: Host Hotels, Globe Life market taps of existing notes; supply thin

By Cristal Cody

Tupelo, Miss., Aug. 31 – A couple of high-grade issuers announced plans early Monday to tap existing bonds that were first priced earlier in August.

Host Hotels & Resorts, LP is marketing a $150 million tap of its 3.5% green senior notes due Sept. 15, 2030 (Baa3/BBB-/BBB-). The company first priced $600 million of the 10-year notes on Aug. 11 at 98.702 to yield 3.655%, or a spread of Treasuries plus 300 basis points. The deal was upsized from $500 million.

Globe Life Inc. is offering a $50 million add-on to its 2.15% senior notes due Aug. 15, 2030 (Baa1/A/BBB+) that were originally priced on Aug. 18. The company had sold $350 million of the 2.15% notes on Aug. 18 at 99.822 to yield 2.17%, or Treasuries plus 150 bps. The original offering was upsized from $300 million.

Also on Monday, Renasant Corp. plans to price fixed-to-floating rate subordinated notes due in 2035 (Kroll: BBB).

Light supply is expected this week ahead of the Labor Day holiday with up to about $5 billion to as much as $15 billion of deal volume anticipated, market sources report.

Looking toward September, syndicate sources forecast about $110 billion to as much as $165 billion of supply for the month.

Last week, high-grade deal volume included about $17 billion of corporate bonds and $10 billion of sovereign, supranational and agency issuance.

The iShares iBoxx Investment Grade Corporate Bond ETF was up 0.34% to 135.46 over the morning.

The Pimco Investment Grade Corporate Bond index opened the day up 0.35% at 115.44.

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