American Honda Finance, CBL & Associates, Export Development Canada price; Amazon.com firms

By Cristal Cody

Tupelo, Miss., Aug. 29 – The high-grade primary market saw action on Tuesday with two U.S. bond offerings and one Canadian Securities and Exchange Commission-registered deal.

American Honda Finance Corp. priced $400 million of four-year floating-rate medium-term notes.

CBL & Associates LP reopened its 5.95% senior notes due Dec. 15, 2026 on Tuesday in a $225 million tap.

Export Development Canada (Aaa/AAA) priced C$500 million of 1.8% five-year SEC-registered green bonds on Tuesday.

The Markit CDX North American Investment Grade index eased about 1 basis point to close at a spread of 60 bps.

In the secondary market, Amazon.com, Inc.’s 3.15% notes due Aug. 22, 2027 firmed 2 bps a day after closing on its $13.7 billion cash acquisition of Whole Foods Markets Inc.

S&P Global Ratings said on Tuesday that it raised its rating on Whole Foods’ 5.2% senior notes due Dec. 3, 2025 to A+ from BBB-. The notes widened 11 bps during the session.

Kroger Co.’s 3.7% senior notes due Aug. 1, 2027 firmed 2 bps.

American Honda sells floaters

American Honda Finance priced $400 million of series A floating-rate medium-term notes on Tuesday at Libor plus 35 bps, according to an FWP filing with the SEC.

The notes due Nov. 5, 2021 (A1/A+/) priced at 99.594.

The interest rate will initially reset on Nov. 5, 2017 and will reset on each interest payment date.

SG Americas Securities, LLC was the bookrunner for the deal.

American Honda Finance is a Torrance, Calif.-based financing arm of American Honda Motor Co.

CBL & Associates reopens

CBL & Associates priced a $225 million reopening of its 5.95% senior notes due Dec. 15, 2026 on Tuesday at a spread of 408 bps over Treasuries, according to an FWP filing with the SEC.

The notes (Baa3/BBB-/BBB-) priced at 98.25 to yield 6.199%.

Wells Fargo Securities LLC, Jefferies & Co., U.S. Bancorp Investments Inc., Goldman Sachs & Co. and Stifel, Nicolaus & Co., Inc. were the bookrunners.

The notes have a limited guarantee by CBL & Associates Properties, Inc.

The company originally sold $400 million of the notes on Dec. 6, 2016 at 98.565 to yield 6.144%, or Treasuries plus 375 bps. The total amount outstanding now is $625 million.

Proceeds from the add-on will be used to reduce debt under the company’s unsecured revolving credit facilities and for general business purposes.

CBL is a Chattanooga, Tenn.-based owner and developer of malls and shopping centers.

Amazon.com, Whole Foods trade

Amazon.com’s 3.15% notes due Aug. 22, 2027 firmed 2 bps in secondary trading on Tuesday to head out at 85 bps bid, according to a market source.

The Seattle-based online commerce company sold $3.5 billion of the notes (Baa1/AA-/) on Aug. 15 as part of a $16 billion seven-tranche deal at a spread of Treasuries plus 90 bps.

Whole Foods Market’s 5.2% notes due Dec. 3, 2025 (Baa3/A-/) were quoted 11 bps wider on the day at 88 bps bid.

Whole Foods sold $1 billion of the notes on Nov. 30, 2015 at a spread of Treasuries plus 300 bps.

Kroger notes improve

Kroger’s 3.7% notes due Aug. 1, 2027 traded 2 bps better on Tuesday at 152 bps bid, a market source said.

The company sold $600 million of the notes (Baa1/BBB/BBB) on July 17 at a Treasuries plus 140 bps spread.

Kroger is a Cincinnati-based grocery retailer.

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