Danaher, DTE, Best Buy, Horton, CubeSmart, National Rural, Ontario price; credit spreads ease

By Cristal Cody

Tupelo, Miss., Sept. 29 – Investment-grade supply remained active on Tuesday with reported corporate and sovereign, supranational and agency issuance totaling more than $5.9 billion over the day.

Danaher Corp. sold $1 billion of 30-year senior notes (Baa1/BBB+) on Tuesday.

DTE Energy Co. priced $750 million of two-year senior notes (Baa2/BBB/BBB) in an offering upsized from $500 million.

Best Buy Co., Inc. sold $650 million of 10-year senior notes (Baa1/BBB/) in a deal upsized from $500 million.

CNH Industrial Capital LLC brought $500 million of guaranteed senior notes due Jan. 15, 2026 (Baa3/BBB/BBB-) to the primary market.

D.R. Horton, Inc. placed $500 million of seven-year senior notes (Baa2/BBB/BBB) on Tuesday.

CubeSmart, LP sold $450 million of guaranteed senior notes due Feb. 15, 2031 (Baa2/BBB/) in an offering upsized from $350 million.

National Rural Utilities Cooperative Finance Corp. priced $400 million of green collateral trust bonds due March 15, 2031 (A1/A/A+) in a deal upsized from $350 million.

Golub Capital BDC, Inc. was in the primary market with $400 million of senior notes due April 15, 2024 (/BBB-/BBB-) on Tuesday.

Also, BPCE SA (Baa2/A+/A+) offered dollar-denominated five-year notes that were talked to price in the Treasuries plus 155 basis points area.

In addition, Svenska Handelsbanken AB (Aa1/AA-/AA) marketed two tranches of dollar-denominated additional tier 1 contingent convertible notes on Tuesday.

SSA primary active

In SSA supply, the Province of Ontario (Aa3/A+/AA-/) sold $1.25 billion of 10-year global notes.

Investment-grade deal volume totals more than $11 billion week to date.

Corporate issuers priced more than $5 billion of notes on Monday, led by Pernod Ricard International Finance LLC’s $2 billion three-part sale of guaranteed senior notes (Baa1/BBB+/BBB+).

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

Market tone was mixed over the day with credit spreads widening and stocks modestly weaker ahead of the first U.S. presidential debate scheduled to start at 9 p.m. ET on Tuesday.

The Markit CDX North American Investment Grade 35 index eased 3 basis points over the session to a spread of 60.4 bps.

The iShares iBoxx Investment Grade Corporate Bond ETF softened 0.13% to 134.73.

The PIMCO Investment Grade Corporate Bond index ended the day down 0.04% at 115.01.

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