Honeywell, Huntington, IADB tap primary market; focus turns to Fed; Las Vegas Sands firms

By Cristal Cody

Tupelo, Miss., July 30 – Honeywell International Inc. and Huntington Bancshares Inc. priced $3.5 billion of notes in the high-grade bond market on Tuesday.

Honeywell International sold $2.7 billion of senior notes in four tranches.

Huntington Bancshares priced $800 million of five-year senior notes.

Also on Tuesday, the Inter-American Development Bank priced a $250 million reopening of its global floating-rate notes due March 15, 2022 on top of guidance.

High-grade volume week to date totals more than $18 billion, including more than $15 billion of notes priced on Monday.

About $20 billion to $25 billion of supply on average is expected by syndicate sources this week.

Issuance was predicted to be front-loaded ahead of a potential rate cut following the Federal Reserve’s monetary policy meeting on Wednesday, sources report.

Market sources are anticipating a cut of 25 basis points to as much as 50 bps.

The primary market is expected to be quiet on Wednesday, a source said.

The Markit CDX North American Investment Grade 32 index closed mostly unchanged at a spread of 53 bps after softening 2 bps in the previous session.

Deal volume has been led week to date by Boeing Co.’s $5.5 billion six-tranche offering of senior notes and Las Vegas Sands Corp.’s $3.5 billion three-part offering of senior notes on Monday.

In the secondary market, Las Vegas Sands’ notes (Baa3/BBB-/BBB-) tightened about 5 bps to 10 bps, a market source said.

The Las Vegas-based resort developer’s 3.5% notes due Aug. 8, 2026 traded about 10 bps better in the secondary market. Las Vegas Sands sold $1 billion of the seven-year notes at a Treasuries plus 162.5 bps spread.

Honeywell prices $2.7 billion

Honeywell International priced $2.7 billion of senior notes (A2/A/A) in four tranches on Tuesday, according to an FWP filing with the Securities and Exchange Commission.

The company priced $600 million of floating-rate notes due Aug. 2, 2022 at par to yield Libor plus 37 bps.

Honeywell sold $600 million of 2.15% three-year notes at 99.899 to yield 2.185%, or a spread of Treasuries plus 37 bps.

A $750 million tranche of 2.3% five-year notes came at 99.793 to yield 2.344%. The notes priced with a Treasuries plus 50 bps spread.

The company sold $750 million of 2.7% 10-year notes at 99.643 to yield 2.741% and a 68 bps spread over Treasuries.

Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC were the bookrunners.

Honeywell is a technology and manufacturing company based in Morristown, N.J.

Huntington Bancshares prints

Huntington Bancshares sold $800 million of 2.625% five-year senior notes on Tuesday at a spread of 83 bps over Treasuries, according to an FWP filing with the SEC.

The notes (Baa1/BBB+/A-) priced at 99.781 to yield 2.672%.

Goldman Sachs & Co. LLC, BofA Securities, Inc., Citigroup Global Markets Inc. and Huntington Investment Co. were the bookrunners.

Huntington Bancshares is a Columbus, Ohio-based regional bank holding company.

IADB reopens notes

The Inter-American Development Bank (Aaa/AAA/) priced a $250 million reopening of its global floating-rate notes due March 15, 2022 on Tuesday at 99.997 to yield Libor plus 4 bps, according to a market source.

The notes, which have a coupon of Libor plus 3 bps, were initially talked to price with a yield in the Libor plus 4 bps area.

BNP Paribas Securities Corp., CIBC World Markets Corp. and Deutsche Bank Securities were the lead managers.

The bank first sold $500 million of the notes on June 6 at par to yield Libor plus 3 bps. A $250 million tap was priced on July 11 to yield Libor plus 5 bps. The total outstanding is now $1 billion.

The provider of development financing for Latin America and the Caribbean is based in Washington, D.C.

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