High-grade supply slows; Lloyds Banking, QVC, TPG tap primary

By Cristal Cody

Tupelo, Miss., Jan. 29 – Primary action slowed on Wednesday in the investment-grade bond market as market focus shifted to the Federal Reserve’s monetary policy decision during the session.

Lloyds Banking Group plc sold $1 billion of six-year fixed-rate reset notes.

QVC, Inc. priced an upsized $575 million of 4.75% split-rated registered seven-year senior notes (Ba2/BBB-/BBB-) at par to yield a Treasuries plus 322 basis points spread following a roadshow on Tuesday, a source said. The deal tightened from guidance in the 5% area and initial talk in the 5.25% area.

The issue was upsized from $500 million.

Also on Wednesday, TPG Specialty Lending Inc. brought a $50 million add-on to its 3.875% notes due Nov. 1, 2024 to the primary market, selling the notes 50 bps tighter than where the issue first priced in October.

Week to date, high-grade deal volume totals more than $7 billion, led by Union Pacific Corp.’s $3 billion four-part offering of registered fixed-rate senior that priced on Tuesday.

About $20 billion to $25 billion of high-grade volume was expected for the week, according to syndicate sources.

On Wednesday, the Federal Reserve left rates unchanged to maintain the target range for the federal funds rate at 1.5% to 1.75%.

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