Gaming and Leisure, Kimco, Assurant tap primary; high-grade inflows rise; energy bonds mixed

By Cristal Cody

Tupelo, Miss., Aug. 15 – Three issuers tapped the investment-grade bond market on Thursday.

Gaming and Leisure Properties, Inc. priced $1.1 billion of senior notes in two tranches.

Kimco Realty Corp. sold $350 million of 30-year notes.

Assurant Inc. placed $350 million of long 10-year senior notes.

The deals bring week-to-date high-grade bond volume to about $23 billion.

Lipper US Fund Flows reported that corporate investment-grade fund inflows jumped to $4.03 billion for the past week ended Wednesday from $2.8 billion in the previous week.

The Markit CDX North American Investment Grade 32 index closed the day about 1 basis point tighter at a spread of 62 bps.

Supply this week has been led by Exxon Mobil Corp.’s $7 billion seven-tranche offering of notes that priced on Tuesday.

Exxon Mobil’s notes traded flat to about 4 bps wider than issuance in the secondary market, a source said.

The company’s $1.25 billion of 2.44% notes due Aug. 16, 2029 eased 3 bps in secondary trading. The notes priced at par to yield a spread of 75 bps plus Treasuries.

Elsewhere in the energy sector, Occidental Petroleum Corp.’s senior notes (Baa3/A/) priced as part of a $13 billion 10-part offering in the previous week were mixed.

Gaming and Leisure prices

Gaming and Leisure Properties priced $1.1 billion of senior notes (Ba1/BBB-/BBB-) in two tranches on Thursday through subsidiaries GLP Capital, LP and GLP Financing II, Inc., according to a market source and an FWP filing with the Securities and Exchange Commission.

The company sold $400 million of 3.35% five-year notes at 99.899 to yield 3.372% and a spread of 195 bps over Treasuries.

Initial talk was in the Treasuries plus 225 basis points area with guidance tightened to the 200 bps area.

A $700 million tranche of 4% notes due Jan. 15, 2030 priced on top of guidance at a Treasuries plus 250 bps spread. The notes came at 99.751 to yield 4.03%.

The issue was initially talked to price in the Treasuries plus 270 bps area.

Wells Fargo Securities LLC, BofA Securities, Inc., Fifth Third Securities Inc., J.P. Morgan Securities LLC, Barclays, Citizens Capital Markets Inc., Credit Agricole Securities (USA) Inc., M&T Securities Inc. and SunTrust Robinson Humphrey Inc. were the bookrunners.

Gaming & Leisure will guarantee the notes.

Gaming & Leisure is a Wyomissing, Pa.-based gaming-oriented real estate investment trust.

Assurant sells notes

Assurant priced $350 million of 3.7% senior notes due Feb. 22, 2030 (Baa3/BBB/) on Thursday at 99.965 to yield 3.704%, according to an FWP filed with the SEC.

The notes priced with a spread of 218 bps over Treasuries.

J.P. Morgan Securities, Wells Fargo Securities and Goldman Sachs & Co. LLC were the bookrunners.

Assurant is a New York-based provider of risk management products and services.

Kimco brings $350 million

Kimco Realty sold $350 million of 3.7% 30-year notes (Baa1/BBB+/BBB+) on Thursday at 98.832 to yield 3.765%, according to an FWP filed with the SEC.

The notes priced at a spread of Treasuries plus 182 bps.

Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities, Wells Fargo Securities, BofA Securities, Inc., RBC Capital Markets, LLC and Jefferies LLC were the bookrunners.

Kimco is a New Hyde Park, N.Y., real estate investment trust that owns and operates neighborhood and community shopping centers.

Occidental Petroleum mixed

Occidental Petroleum’s 2.9% notes due Aug. 15, 2024 firmed 6 bps to 142 bps bid on Thursday after widening 12 bps in the previous session, according to a market source.

The company sold $3 billion of the notes on Aug. 6 at a 140 bps over Treasuries spread.

Occidental Petroleum’s 3.5% notes due Aug. 15, 2029 headed out 2 bps weaker on the day at 190 bps bid.

The notes priced in the Aug. 6 offering in a $1.5 billion tranche at a Treasuries plus 185 bps spread.

The oil and gas, chemical and midstream company is based in Los Angeles.

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