Boston Properties, D.R. Horton, TCF price; heavy May supply eyed

By Cristal Cody

Tupelo, Miss., May 1 – Three high-grade issuers tapped the primary market on Friday, pushing the week’s volume to nearly $90 billion.

In registered offerings on Friday, Boston Properties LP sold $1.25 billion of senior notes due Jan. 30, 2031.

D.R. Horton, Inc. priced $500 million of long five-year senior notes after reporting strong second quarter earnings on Tuesday.

Also during the session, TCF National Bank priced a $150 million section 3(a)(2) exempt offering of 10-year fixed-to-floating-rate subordinated bank notes.

The week’s volume blew past market forecasts of about $40 billion to $50 billion of issuance expected following Boeing Co.’s record $25 billion seven-tranche offering of senior notes priced on Thursday.

Volume year to date already is 82% ahead of the pace set in 2019, according to a BofA Securities, Inc. research note.

Supply hit records in March and April and likely will see another record in May as investor appetite remains strong, market sources said.

About $250 billion to $300 billion of volume is being forecast for May.

In the week ahead, about $60 billion to $75 billion of supply is expected to hit the primary market.

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