Florida Power, Southwest Air, Reliance Steel in primary; supply steady; spreads soften

By Cristal Cody

Tupelo, Miss., July 28 – High-grade supply included bond deals from Florida Power & Light Co., Southwest Airlines Co. and Reliance Steel & Aluminum Co. on Tuesday following strong volume at the start of the week.

Reliance Steel & Aluminum priced an upsized $900 million of senior notes (Baa3/BBB/BBB) in two tranches 35 bps to 40 bps better than initial guidance following fixed income investor calls on Monday.

High-grade supply totals more than $19 billion week to date after volume topped $16 billion in the previous session, led by AT&T Inc.’s $11 billion five-part offering of senior global notes (Baa2/BBB/A-).

About $10 billion to $15 billion of investment-grade issuance was expected this week after less than $7 billion of bonds priced last week, according to market sources.

In other action on Tuesday, the Federal Reserve Board announced it will extend its Covid-19 pandemic impact-response lending facilities, including the primary and secondary market corporate credit facilities, to Dec. 31 from Sept. 30. A commercial paper funding facility is set to expire on March 17, 2021.

Coming up on Wednesday, the Federal Reserve will conclude a two-day monetary policy meeting.

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