Issuers flood market; Shell, Mizuho, RBS, Valero price; heavy supply forecast; CDX eases

By Cristal Cody

Eureka Springs, Ark., Sept. 7 – High-grade issuers flooded the primary market on Wednesday, pricing more than $15 billion of bonds during the session.

Issuers including Shell International Finance BV, Public Service Electric & Gas Co., Export Development Canada and Dr Pepper Snapple Group Inc. priced.

Shell tapped the market with a $4.75 billion five-part offering of guaranteed notes.

Mizuho Financial Group, Inc. sold $3.25 billion of notes in three tranches.

Royal Bank of Scotland Group plc priced $2.65 billion of seven-year notes on Wednesday.

Also, Valero Energy Corp. sold $1.25 billion of 10-year notes.

TJX Cos., Inc. upsized an offering of 10-year notes to $1 billion from $750 million.

W.P. Carey Inc. priced $350 million of 10-year notes during the session.

In addition, Public Service Electric & Gas Co. sold $425 million of 10-year secured medium-term notes.

Also on Wednesday, Ares Capital Corp. kicked off a three-day roadshow for a benchmark-size SEC-registered transaction.

Market sources expect investment-grade bond issuance over the month to soar past $100 billion.

The Markit CDX North American Investment Grade index closed the day 1 basis point weaker at a spread of 72 bps.

In the secondary market, Home Depot Inc.’s $2 billion two-part offering of notes (A2/A/A) priced on Tuesday traded about 1 bp to 4 bps tighter earlier in the day.

Magellan Midstream Partners, LP’s 4.25% notes due 2046, priced in a $500 million tranche on Tuesday, traded flat to 1 bp better.

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