Morning Commentary: High-grade primary action quiet Friday; Healthcare Realty on deck

By Devika Patel

Knoxville, Tenn., Sept. 18 – The high-grade bond market stayed quiet early Friday, with only one new deal announced.

Nashville-based Healthcare Realty Trust Inc. reported that it intends to sell fixed-rate senior notes due 2031.

The notes feature a make-whole call and then a par call.

J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.

Proceeds will be used to redeem the company’s senior notes due 2023 and for other general corporate purposes.

Thursday, however, had been very busy, with at least six new deals pricing.

New York-based Verizon Communications Inc., a telecommunications company, priced another $1.12 billion of 3% 40-year notes after selling $1 billion of 1.5% 10-year green notes on Wednesday.

Houston-based Quanta Services, Inc., a specialized contracting services company, sold $1 billion of 2.9% 10-year senior notes (Baa3/BBB-) at 99.663 to yield 2.939%, or Treasuries plus 225 basis points, to help repay its term loan.

In addition, London-based Barclays plc, an investment bank and financial services company, priced $1 billion of 3.564% 15-year fixed-rate resetting subordinated split-rated callable notes (Baa3/BB+/BBB+).

Plus, St. Louis-based Emerson Electric Co., a technology and engineering company, priced $750 million of 0.875% notes due Oct. 15, 2026.

Also, Daytona Beach, Fla.-based Brown & Brown Inc., a diversified insurance company, sold $700 million of 2.375% senior notes due March 15, 2031 (Baa3/BBB-) at 99.89 and Newton, Mass.-based Office Properties Income Trust, a real estate investment trust, sold a $250 million add-on to its 4.5% senior notes due Feb. 1, 2025 (Baa3/BBB-) at 101.414.

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