Investment-grade supply thin; Hyatt Hotels, Coca-Cola Femsa, Tencent Music tap primary market

By Cristal Cody

Tupelo, Miss., Aug. 26 – High-grade issuance is starting to slow in late August with just a handful of deals priced on Wednesday.

Hyatt Hotels Corp. sold $750 million of two-year floating-rate senior notes (Baa3/BBB-/).

A couple of high-grade emerging markets issuers also tapped the dollar-denominated primary market on Wednesday.

Tencent Music Entertainment Group priced an $800 million two-part registered offering of senior notes (A2/A/A), including $300 million of five-year notes and $500 million of 10-year notes.

Coca-Cola Femsa SAB de CV sold $705 million of 12-year green senior notes (A2/BBB+/A-) tighter than guidance.

Including Wednesday’s issues, high-grade corporate supply totals about $17 billion week to date, while sovereign, supranational and agency volume totals $10 billion so far this week.

About $15 billion to $20 billion of corporate deal volume was forecast for the week.

Market focus on Thursday is expected to be on Federal Reserve chairman Jerome Powell’s speech at the Federal Reserve Bank of Kansas City’s economic policy symposium in Jackson Hole, Wyo.

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