High-grade deal pace stays busy; Comcast, Nucor, Dentsply, NWB price; credit spreads firm

By Cristal Cody

Tupelo, Miss., May 20 – High-grade supply continued at a busy pace on Wednesday with corporate and sovereign, supranational and agency issuance over the session.

Comcast Corp. priced $4 billion of senior notes (A3/A-/A-) in three tranches better than talk, including new issues due 2031 and 2051 and a tap of its 3.75% notes due April 1, 2040.

Nucor Corp. priced $1 billion of notes (Baa1/A-/) in two tranches tighter than initial guidance.

Dentsply Sirona Inc. priced $750 million of 10-year senior notes (Baa2/BBB) better than talk.

Also, supply was offered from Toyota Motor Credit Corp., Banco Santander, SA and First Horizon National Corp.

Toyota Motor Credit offered three tranches of notes (A1/AA-/) that included new two-year notes talked at the 115 basis points spread area and new three-year notes talked at the 130 bps spread area.

Toyota also marketed a reopening of its 1.8% notes due Feb. 13, 2025. Initial price talk is in the Treasuries plus 145 bps area.

Banco Santander (Baa1/A-/A-) planned to price two tranches of dollar-denominated senior notes following fixed income investor calls on Monday and Tuesday.

The deal includes five-year notes with initial price talk at the Treasuries plus 280 bps area and 10-year notes talked at the 320 bps spread area.

First Horizon National offered two tranches of senior notes, as well as $25-par perpetual non-cumulative preferred stock, on Wednesday.

The company’s three-year tranche of notes is talked to print in the Treasuries plus mid-300 bps area, while a five-year note is talked at the high 300 bps spread area.

In addition, Western Alliance Bank (Baa2/BBB-/) offered 10-year notes initially talked at the 5.25% area on Wednesday.

In other supply, Comerica Inc. priced $400 million of 5.625% non-cumulative perpetual fixed-rate reset preferred stock (Baa2/BB+/) tighter than talk of 6% to 6.125%.

Also on Wednesday, Nederlandse Waterschapsbank NV, or NWB Bank, sold $500 million of 10-year green notes better than guidance.

More than $34 billion of investment-grade bonds have priced week to date, in line with the $30 billion to $40 billion of supply expected for the week.

The Markit CDX North American Investment Grade 33 index came in about 6 bps on Wednesday to close at a spread of 84.03 bps.

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