Hasbro prices; strong high-grade supply forecast; Hasbro, Anglo American notes firm

By Cristal Cody

Tupelo, Miss., Sept. 8 – Hasbro, Inc. tapped the high-grade primary market on Friday with a $500 million offering of 10-year notes, capping off a short week that saw nearly $50 billion of total deal volume.

Primary action is expected to stay strong in the coming week with about $30 billion to $35 billion of supply forecast, barring any geopolitical events, according to market sources.

Syngenta AG (Ba2/BBB-/BBB) plans to hold a roadshow starting on Monday for a multi-tranche benchmark-sized dollar-denominated Rule 144A and Regulation S offering of senior notes.

Also, Australian property company Goodman Group (Baa1/BBB+/) intends to hold roadshows beginning on Monday for a multi-tranche dollar- and euro-denominated notes offering.

Credit spreads softened on Friday. The Markit CDX North American Investment Grade index closed about 1 point weaker at a spread of 60 bps.

In the secondary market, Hasbro’s notes traded about 1 bp tighter on the bid side.

Anglo American plc’s $1.3 billion of notes (Baa3/BBB-/BBB-) priced in two tranches on Wednesday in the company’s first offering as an investment-grade rated issuer traded about 3 bps to 7 bps better.

Hasbro prices $500 million

Hasbro sold $500 million of 3.5% 10-year senior notes (Baa1/BBB/BBB+) on Friday at a spread of 145 bps over Treasuries, according to an FWP filing with the Securities and Exchange Commission.

The notes priced at 99.874 to yield 3.515%.

The notes were talked to price in the Treasuries plus 150 bps area.

J.P. Morgan Securities LLC, BofA Merrill Lynch, Citigroup Global Markets Inc. and SunTrust Robinson Humphrey Inc. were the bookrunners.

Proceeds will be used to repay all $350 million of the company’s 6.3% notes due 2017 upon maturity on Sept. 15 and for general corporate purposes, including debt repayment and refinancing.

In the secondary market, Hasbro’s notes traded modestly tighter at 144 bps bid, 142 bps offered, a source said.

The toy and game company is based in Pawtucket, R.I.

Anglo American firms

Anglo American’s 3.625% notes due Sept. 11, 2024 tightened to 161 bps bid, 158 bps offered in secondary trading, a source said on Friday.

The company sold $650 million of 3.625% notes due Sept. 11, 2024 on Wednesday at a spread of Treasuries plus 170 bps.

Anglo American’s $650 million of 4% notes due Sept. 11, 2027, priced at a spread of Treasuries plus 190 bps, firmed to 187 bps bid, 184 bps offered.

The company was upgraded to investment grade in August by S&P Global Ratings and Fitch Ratings and at the start of September by Moody’s Investors Service.

Anglo American is a London-based mining company.

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