High-grade supply remains thin ahead of upcoming Labor Day weekend

By Devika Patel

Knoxville, Tenn., Aug. 30 – Primary activity in the investment-grade bond market stayed quiet throughout Friday with no new deals announced or pricing.

Deals were halted largely due to the upcoming extended Labor Day weekend in the United States in which markets will be closed on Sept. 2.

The week, however, had several deals announced, many of which emerged from non-U.S. issuers.

On Monday, Dallas-based Texas Instruments Inc., a semiconductor designer and manufacturer, sold $750 million of 10-year 2.25% notes.

Then, on Tuesday, Beazley Insurance DAC, a subsidiary of Beazley Group Ltd., the Dublin-based parent company of specialist insurance businesses, said it plans to conduct fixed-income investor meetings in Singapore, Hong Kong and London for an offering of 10-year subordinated tier 2 notes, which will be denominated in either pounds sterling or U.S. dollars.

On Wednesday, Kirchberg, Luxembourg-based European Investment Bank, the lender for the European Union, reported that it is selling $3 billion of 1.375% notes due Sept. 6, 2022.

Finally, on Thursday, The Hague, Netherlands-based bank BNG Bank NV announced that it will conduct a dollar-denominated Rule 144A and Regulation S sale of benchmark notes and New York-based investment banking and securities firm Jefferies Group LLC sold $75 million of 5% senior notes due Aug. 31, 2039.

Texas Instruments prices $750 million

Texas Instruments brought $750 million of 10-year 2.25% notes (A1/A+/) to market on Monday.

The company priced the notes at 99.689 to yield 2.285%, or 75 bps over Treasuries.

Barclays, BofA Securities, Inc., J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Mizuho Securities USA Inc., Morgan Stanley & Co. LLC and MUFG were the bookrunners.

Proceeds will be used for general corporate purposes.

Beazley eyes notes

Beazley Insurance said it will arrange fixed income investor meetings in Singapore, Hong Kong and London for an offering of 10-year subordinated tier 2 notes, which will be denominated in either pounds sterling or U.S. dollars.

J.P. Morgan Cazenove, Lloyds Bank Corporate Markets Wertpapierhandelsbank and NatWest Markets are the bookrunners.

The U.S. high-grade primary market has remained largely quiet in the lead in to the Labor Day holiday on Monday as market participants pull back from the market.

EIB sells notes

The European Investment Bank priced $3 billion of 1.375% notes due Sept. 6, 2022 on Wednesday.

The notes priced at 99.687 to yield 1.482%, with a spread of Treasuries plus 6.25 bps.

Barclays, BofA Securities, Inc. and TD Securities (USA) LLC were the bookrunners.

Proceeds will be used for general operations.

BNG eyes notes

BNG Bank intends to price a dollar-denominated Rule 144A and Regulation S sale of benchmark notes.

Toronto-Dominion Bank, HSBC Bank plc, Morgan Stanley & Co. International plc and Scotiabank Europe plc are the bookrunners.

Jefferies prices $75 million

Jefferies Group LLC and Jefferies Group Capital Finance Inc. priced $75 million of 5% senior notes due Aug. 31, 2039 at par, according to a 424B2 filing with the Securities and Exchange Commission.

Jefferies LLC is the agent.

The notes are callable at par on Aug. 31, 2022.

The issuers said they might increase the issue size prior to settlement but are not required to do so.

Proceeds will be used for general corporate purposes.

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