HSBC prices; Philip Morris, Colgate upsize deals; Coach notes widen; Home Depot soft

By Aleesia Forni and Cristal Cody

Virginia Beach, Aug. 4 – A hodgepodge of issuers entered the investment-grade primary on Tuesday, bringing more than $6.6 billion of new paper to market.

HSBC USA Inc. priced a $2.7 billion new issue in the day’s largest trade, attracting around $4.3 billion of orders for the three-part offering.

Both Philip Morris International Inc. and Colgate-Palmolive Co. were in the primary with upsized bond deals.

Philip Morris sold $1.25 billion of senior notes in tranches due 2017 and 2025.

Colgate-Palmolive priced its $600 million of new issue at the tight end of talk.

Meantime, 3M Co. sold a $1.5 billion three-part offering of notes, while Northern States Power Co. sold $600 million of mortgage bonds in two tranches around 15 basis points to 20 bps tight of initial price thoughts.

Tuesday’s activity pushes the week’s total new issuance to $15.55 billion.

In the secondary market, Coach Inc.’s 4.25% senior notes due 2025 widened 5 bps over the day after the company released weaker fourth-quarter and fiscal 2015 revenue and earnings.

Home Depot Inc.’s 4.25% senior notes due 2046 traded 2 bps softer.

The Markit CDX North American Investment Grade index headed out unchanged to modestly weaker at a spread of 72 bps.

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