LyondellBasell, Standard Chartered, W.P. Carey, John Deere, Athene, Sweden in primary

By Cristal Cody

Tupelo, Miss., Oct. 6 – The high-grade primary market stayed active on Tuesday with numerous corporate and sovereign, supranational and agency issuers.

LyondellBasell Industries NV subsidiary LYB International Finance III BV offered of six tranches of guaranteed notes (Baa2/BBB-/BBB) on Tuesday following a virtual roadshow on Monday, a source said.

The deal includes three-year floaters talked to price at the Libor plus 105 basis points area, five-year notes talked at the Treasuries plus 125 bps area, 10-year notes talked at the 190 bps spread area, 20-year notes guided at the 220 bps over Treasuries area, 30-year notes talked at the 240 bps spread area and 40-year notes talked to print in the Treasuries plus 260 bps area.

W.P. Carey Inc. tapped the primary market with $500 million of senior notes due Feb. 1, 2031 (Baa2/BBB/) in a deal upsized from $350 million.

John Deere Capital Corp. priced $500 million of three-year senior medium-term notes (A2/A/A) 20 bps better than talk.

Athene Holding Ltd. sold $400 million of senior notes due Jan. 15, 2031 (/BBB+/BBB) in a registered offering 35 bps tighter than talk.

Also on Tuesday, Standard Chartered plc offered dollar-denominated notes due Oct. 14, 2023 (Baa2/BBB-/A-) talked to price in the Treasuries plus 150 bps spread area.

MassMutual Global Funding II marketed funding agreement-backed notes due Oct. 9, 2030 (Aa3/AA+/AA+) that were guided at the Treasuries plus 105 bps spread area.

In other supply on Tuesday, the Kingdom of Sweden (Aaa/AAA/AAA) sold $2.5 billion of two-year notes in an offering that attracted $4.7 billion in bids.

More than $8 billion of corporate and SSA bonds priced on Monday, led by Berkshire Hathaway Finance Corp.’s $2.5 billion two-part offering of guaranteed senior notes (Aa2/AA/A+).

About $15 billion to $20 billion of high-grade supply is anticipated by syndicate sources to print this week.

In other action on Tuesday, the Federal Reserve Board announced it would begin the 2020 Census of finance companies and other lenders with about 26,000 companies queried. The Fed said it has surveyed the assets and liabilities of finance companies at roughly five-year intervals since 1955.

Credit spreads ease

In the secondary market, PepsiCo Inc.’s $1.5 billion of senior notes (A1/A+/) that priced in two tranches on Monday were active over the day, a source said.

PepsiCo’s inaugural tranche of 0.4% diversity and inclusion notes due Oct. 7, 2023 were quoted at 100.07.

The company sold $750 million of the diversity and inclusion bonds at 99.943 to yield 0.419%, or a spread of 23 bps over Treasuries.

PepsiCo’s 1.4% senior notes due Feb. 25, 2031 headed out at 100.07.

The company sold $750 million of the notes at 99.597 to yield 1.442%, or a spread of 67 bps over Treasuries.

Meanwhile, stocks declined by the close following president Trump’s announcement that he postponed talks on a second round of Covid-19 stimulus measures until after the election. The Dow Jones industrial average fell 1.34%, while the S&P 500 was off 1.4%.

The iShares iBoxx Investment Grade Corporate Bond ETF declined 0.08% to 134.25.

The PIMCO Investment Grade Corporate Bond Index closed flat at 114.6.

The Markit CDX North American Investment Grade 35 index eased 1.61 bps to end at a spread of 58.19 bps.

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