High-grade supply heavy; Comcast, MPLX, Toyota, Eversource, HSBC, ADP keep primary busy

By Cristal Cody

Tupelo, Miss., Aug. 11 – Strong high-grade supply continued on Tuesday with issuers bringing more than $18 billion of bonds to the primary market over the session.

Comcast Corp. sold $4.5 billion of senior notes (A3/A-/A-) in three tranches.

The deal included $1.75 billion of notes due Feb. 15, 2031, $1.5 billion of notes due Aug. 15, 2052 and $1.25 billion of notes due Aug. 15, 2062.

MPLX LP priced $3 billion of fixed-rate senior notes (Baa2/BBB/BBB) in two parts, including a $1.5 billion tranche of notes due March 1, 2026 and a $1.5 billion offering of 10-year notes.

Toyota Motor Credit Corp. sold $2.75 billion of medium-term notes (A1/A+/A+) in three tranches during the day.

The deal included $750 million of floating-rate notes due Feb. 14, 2022, a $1.4 billion tranche of three-year notes and a $600 million offering of seven-year notes.

Eversource Energy priced $1.2 billion of senior notes (Baa1/BBB+/BBB+) in three tranches, including $300 million of five-year notes, $600 million of 10-year notes and a $300 million add-on to its 3.45% senior notes due Jan. 15, 2050.

Automatic Data Processing, Inc. brought $1 billion of 10-year senior notes (Aa3/AA) to the primary market.

Republic Services, Inc. sold $650 million of notes due Feb. 15, 2031 (Baa2/BBB+/BBB) on Tuesday.

Host Hotels & Resorts, LP came by with $600 million of 10-year green senior notes (Baa3/BBB-/BBB-) in a deal upsized from $500 million.

CNA Financial Corp. tapped the primary market with $500 million of 10-year senior notes (Baa2/BBB+/).

Lincoln National Corp. affiliate Belrose Funding Trust sold $500 million of 10-year precapitalized trust securities (Baa1/A-/BBB+).

Also, Gaming and Leisure Properties, Inc. subsidiaries GLP Capital, LP and GLP Financing II, Inc. priced a $200 million reopening of the issuers’ 4% guaranteed senior notes due Jan. 15, 2031 (Ba1/BBB-/BBB-) on Tuesday.

Public Storage priced $200 million of $25-par preferred stock (A3/BBB+/) during the session.

In addition, HSBC Holdings plc was offering $3.5 billion of fixed-to-floating-rate senior notes (A2/A-/A+) in two tranches.

Deal volume already totals more than $31 billion week to date.

About $25 billion to $30 billion of high-grade supply was expected by market participants for the week.

Investment-grade issuers priced more than $13 billion of bonds on Monday, led by Chevron U.S.A. Inc.’s $4 billion seven-tranche sale of senior notes (Aa2/AA/) and Visa Inc.’s $3.25 billion three-part offering of senior notes (Aa3/AA-/).

The Markit CDX North American Investment Grade 33 index eased about 1 basis point on the day to a spread of 67.02 bps.

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