Union Electric, New England Power, Signature Bank, Swedish Export Credit price; inflows drop

By Cristal Cody

Tupelo, Miss., Oct. 1 – A handful of companies tapped the high-grade bond market on Thursday as the fourth quarter kicked off.

Union Electric Co. priced $550 million of long 30-year green first mortgage bonds (A2/A/) following investor calls in the previous session.

New England Power Co. (A3/A-/) brought $400 million of 30-year senior notes in a Rule 144A and Regulation S transaction to the primary market.

Signature Bank (Baa2//BBB+) sold $375 million of 10-year fixed-to-floating-rate subordinated notes in a deal upsized from $200 million.

In sovereign, supranational and agency issuance, Swedish Export Credit Corp. priced a $150 million add-on to its 1.75% medium-term global notes due Dec. 12, 2023 (Aa1/AA+/) on Thursday.

Also on Thursday, Everest Reinsurance Holdings, Inc. (Baa1/A-/) marketed two tranches of registered senior notes due in 2030 and 2050.

Corporate and SSA issuers have priced more than $18 billion of investment-grade notes week to date.

About $20 billion to $25 billion of issuance was expected by market participants this week.

October volume forecasts are mixed with market participants forecasting as little as $50 billion to as much as $100 billion of supply for the month.

Meanwhile, high-grade corporate funds inflows fell to $2.08 billion in the past week ended Wednesday from $4.16 billion in the previous week and $5.17 billion in the week prior week, according to Refinitive Lipper US Fund Flows.

Mondelez firms

The Markit CDX North American Investment Grade 35 index improved about 1 basis point to close the day at a spread of 58.43 bps.

In the secondary market, new issues priced this week were mixed.

Mondelez International, Inc.’s $1.25 billion of new and reopened notes (Baa1/BBB/) priced in two tranches on Wednesday were trading better than issuance, sources said.

The company’s 2.625% notes due Sept. 4, 2050 (Baa1/BBB/) tightened nearly 10 bps to 126 bps bid.

Mondelez priced a $625 million add-on to the 2.625% notes on Wednesday at a 135 bps over Treasuries spread.

The company first sold $500 million of notes on Sept. 2 at a spread of 127 bps over Treasuries. The total outstanding is now $1,125,000,000.

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