High-grade supply resumes; B.A.T., T-Mobile, Blackstone, Xcel, Kemper price; SEK on tap

By Cristal Cody

Tupelo, Miss., Sept. 22 – Investment-grade supply revved up on Tuesday after issuers stood down on Monday.

The day’s issuance was led by $6.25 billion of registered guaranteed senior notes (Baa2/BBB+/) in five tranches that priced from British American Tobacco plc subsidiaries B.A.T. International Finance plc and B.A.T Capital Corp.

Also on Tuesday, T-Mobile U.S. Inc. subsidiary T-Mobile USA, Inc. came by to bring a $4 billion Rule 144A and Regulation S offering of new and reopened senior secured notes (Baa3/BBB-/BBB-) in four tranches.

Meanwhile, Bank of America Corp. priced $2 billion of social and green medium-term fixed-to-floating rate senior notes due Sept. 25, 2025 (A2/A-/A+).

Blackstone Holdings Finance Co. LLC sold a $900 million Rule 144A and Regulation S offering of guaranteed senior notes (/A+/A+) in two tranches.

San Diego Gas & Electric Co. priced an upsized $800 million offering of 10-year first mortgage bonds (A2/A/A).

The session also saw a deal from Xcel Energy Inc., which priced $500 million of three-year senior notes (Baa1/BBB+/BBB+).

In addition, Kemper Corp. priced $400 million of 10-year senior notes (Baa3/BBB/BBB).

Also, Advance Auto Parts, Inc. priced $350 million of seven-year senior notes (Baa2/BBB-/).

In other primary action, DTE Energy Co. sold $200 million of $25-par 60-year junior subordinated debentures (Baa3/BBB-).

SSA supply

Looking ahead to Wednesday, Swedish Export Credit Corp. plans to print new dollar-denominated three-year global notes (Aa1/AA+/).

Initial price talk is in the mid-swaps plus 15 basis points area.

The corporate and sovereign, supranational and agency primary markets were quiet on Monday as stocks softened but recovered over Tuesday’s session.

About $30 billion to $35 billion of deal volume is expected by market participants this week.

The Markit CDX North American Investment Grade 35 index closed modestly softer at a spread of 52.57 basis points.

The iShares iBoxx Investment Grade Corporate Bond ETF ended up 0.06% at 135.68.

The PIMCO Investment Grade Corporate Bond index edged down 0.02% to 115.48.

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