Morning Commentary: Cadence Bancorp., Black Sea Trade, HCA, Spirit Realty offer notes

By Cristal Cody

Tupelo, Miss., June 20 – Investment-grade deal action began to pick up early Thursday after issuers stayed to the sidelines in the previous session following the Federal Reserve’s decision to keep rates unchanged.

Houston-based regional financial holding company Cadence Bancorp. (S&P: BB+/Kroll: BBB-) intends to price registered 10-year fixed-to-floating rate subordinated notes.

Black Sea Trade and Development Bank (A2/A-) priced $400 million of five-year fixed-rate notes in a Rule 144A and Regulation S transaction at 99.542.

The Thessaloniki, Greece-based financial and development institution launched the offering on Wednesday at a spread of 175 basis points over mid-swaps.

HCP Inc. (Baa1/BBB+/BBB) is marketing two tranches of registered fixed-rate senior notes. The company plans to price seven- and 10-year tranches.

On Thursday, the Irvine, Calif., health care real estate investment trust launched tender offers to purchase up to $400 million of its outstanding 4% notes due 2022 and 4.25% notes due 2023. Proceeds from the bond offering will be used to fund the tender offers and to redeem a portion or all of its $800 million of 2.625% notes due February 2020 before maturity.

Also on Thursday, Spirit Realty Capital, Inc.’s operating partnership, Spirit Realty, LP, is offering 10-year fixed-rate senior notes (//BBB-) in a registered offering.

The notes will be guaranteed by Spirit Realty Capital, a Dallas-based net-lease real estate investment trust.

High-grade issuers have priced about $5 billion of bonds week to date, compared to about $15 billion to $20 billion of issuance expected by market sources for the week.

While primary action was quiet on Wednesday, the secondary market saw $21.37 billion of bonds traded, according to Trace. Secondary market volume this week includes $24.31 billion of bonds traded on Tuesday and $17.34 billion of bonds traded on Monday.

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