HSBC, Sanofi, Alexandria Real Estate, Kommuninvest price; AT&T firms on deal approval

By Cristal Cody

Tupelo, Miss., June 12 – Investment-grade supply on Tuesday included $3 billion of 11-year fixed-to-floating-rate senior notes from HSBC Holdings plc.

Sanofi SA also sold $2 billion of notes in two tranches.

Alexandria Real Estate Equities, Inc. priced a $900 million two-part offering of senior notes.

Also, Kommuninvest I Sverige AB placed $2.5 billion of long two-year notes on Tuesday.

In other market action, AT&T Inc. on Tuesday received the court go-ahead to complete its $85.4 billion cash and stock acquisition of Time Warner Inc. The Justice Department had filed suit to block the deal.

AT&T said in a statement it plans to close the merger by June 20.

AT&T’s bonds (Baa1/BBB+/A-) traded about 1 basis point to 3 bps tighter going out, a source said.

Time Warner’s 2.95% notes due July 15, 2026 (Baa2/BBB/BBB+) were mostly unchanged at the 143 bps area, the source said.

Coming up on Wednesday, market sources are paying close attention to the release of the Federal Reserve’s monetary policy announcement. A rate hike of 25 bps is widely expected.

Also on Wednesday, Bayer AG will start a round of fixed-income investor calls for a possible dollar-denominated Rule 144A and Regulation S deal.

Syndicate sources forecast about $15 billion to $20 billion of supply over the week.

On Monday, more than $6 billion of investment-grade bonds were priced.

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