BlackRock taps primary market; Gaming & Leisure tightens; Occidental Petroleum mixed

By Cristal Cody

Tupelo, Miss., Aug. 16 – BlackRock TCP Capital Corp. priced $150 million of five-year senior notes as the sole reported issuer in the high-grade primary market on Friday.

The notes priced more than 10 basis points tighter than initial talk.

Investment-grade companies sold more than $23 billion of bonds this week, compared to about $25 billion to $30 billion of volume expected by market sources.

Issuance is expected to slow in the back half of August ahead of the Labor Day holiday with desks already beginning to thin for late summer vacations, sources report.

The Markit CDX North American Investment Grade 32 index firmed 3 bps to close Friday at a spread of 59 bps.

In the secondary market, new issues priced this week were mixed, a source said.

Gaming & Leisure Properties, Inc.’s $1.1 billion of senior notes (Ba1/BBB-/BBB-) that priced on Thursday tightened across both tranches.

Occidental Petroleum Corp.’s senior notes (Baa3/A) that priced as part of a $13 billion 10-part offering in the previous week remain active but were mixed in secondary trading on Friday.

Elsewhere, the high-grade space saw the biggest inflows in the fixed income space this past week, Yuri Seliger, a credit strategist with BofA, said in a research note released on Friday.

High-grade, including corporate bonds, agencies, Treasuries and mortgages, had $4.17 billion of inflows for the week ended Wednesday, up from $1.86 billion of inflows in the previous week.

Short-term high-grade inflows declined to $1.45 billion from $1.7 billion last week, while excluding short-term inflows jumped to $2.72 billion from $160 million in the prior week.

The decline to inflows to high-grade funds to $2.89 billion from $3.29 billion last week was offset by ETF flows “turning positive” with a $1.29 billion inflow following a $1.43 billion outflow in the previous week, Seliger said.

BlackRock prices

BlackRock TCP Capital priced $150 million of 3.9% senior notes due Aug. 23, 2024 (Baa3/BBB-) on Friday at a spread of 275 bps over Treasuries, according to an FWP filed with the Securities and Exchange Commission.

Initial price talk was in the Treasuries plus 287.5 bps area.

The notes priced at 98.757 to yield 4.178%.

BofA Securities, Inc. was the lead bookrunner.

The specialty finance company is based in Santa Monica, Calif.

Gaming & Leisure firms

Gaming & Leisure Properties’ two tranches that priced on Thursday through subsidiaries GLP Capital, LP and GLP Financing II, Inc. both tightened in the secondary market, a source said.

The company’s $400 million of 3.35% notes due Sept. 1, 2024 firmed to 185 bps bid on Friday. The notes priced on Thursday at a spread of 195 bps over Treasuries.

The 4% senior notes due Jan. 15, 2030 improved to 242 bps bid on Friday in the secondary market.

The tranche priced in a $700 million offering at a spread of Treasuries plus 250 bps.

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

Occidental Petroleum active

Occidental Petroleum’s 2.9% notes due Aug. 15, 2024 eased 3 bps to 145 bps bid in the secondary market on Friday, a source said.

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

Occidental Petroleum’s tranche of 3.5% notes due Aug. 15, 2029 firmed 3 bps to 187 bps bid on Friday.

The notes were 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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.