IG primary remains strong following record week; Plains, Toll Brothers price

By Rebecca Melvin

New York, Sept. 9 – Investment-grade bond issuance remained robust on Monday, following a record post-Labor Day week last week.

The heavy volume of issuance is expected to slow somewhat now, but then remain steady.

There were another 15 issues unveiled on Monday, representing $10 billion to 12 billion in new paper.

“The market is in very good shape,” the market source said. The rates backdrop has been favorable and should continue to attract issuers. “

In the lineup on Monday were Toll Brothers Finance Corp., Spirit Realty, LP and Fortune Brands Home & Security, Inc.

Also announcing bond offerings were Baltimore Gas and Electric Co., Plains All American Pipeline LP, financial holding company BB&T Corp. and Mizuho Financial Group Inc.

Plains priced $1 billion of 3.55% senior notes (Ba1/BBB-/BBB-) at 99.801 to yield 3.572% and a spread of 195 bps over U.S. Treasuries, according to a pricing term sheet filed with the Securities and Exchange Commission.

Split-rated Toll Brothers priced an upsized $400 million registered offering of 10-year senior notes (Ba1/BB+/BBB-) at par to yield 3.8%. Initial price talk was in the 4 1/8% area.

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