T-Mobile, Ross, CIBC, Honda, Penske price; United Air, Denmark on tap; credit spreads ease

By Cristal Cody

Tupelo, Miss., Oct. 19 – The week opened with more than $7 billion of notes priced in the high-grade primary market on Monday.

T-Mobile U.S. Inc. subsidiary T-Mobile USA, Inc. led the day’s supply with a $4.75 billion four-tranche offering of new and reopened senior secured notes (Baa3/BBB-/BBB-) in a Rule 144A and Regulation S deal.

Ross Stores, Inc. priced $1 billion of senior notes (A2/BBB+) in two tranches to fund cash tender offers.

Penske Truck Leasing Co., LP came by with an upsized $750 million of five-year senior notes (Baa2/BBB/BBB+) on Monday.

American Honda Finance Corp. brought $550 million of medium-term notes due Jan. 21, 2022 (A3/A-/) to the primary market.

Also, Canadian Imperial Bank of Commerce priced $500 million of five-year green senior notes (A2/BBB+/AA-) during the session.

Coming up on Tuesday, United Airlines, Inc. is expected to price $3 billion of class A pass-through certificates (A3/A) that have a seven-year tenor and a 4.1-year weighted average life.

In addition, the Kingdom of Denmark (Aaa/AAA/AAA) plans to price dollar-denominated notes due Oct. 27, 2022 in a Rule 144A and Regulation S offering on Tuesday.

About $15 billion of high-grade supply is expected this week, according to syndicate sources.

A majority of companies are in earnings-released blackout reporting periods, though “some regional bank issuance remains possible,” BofA Securities, Inc. analysts said in a research note released Monday.

High-grade supply ramped up on Friday with $10 billion of notes priced from Bank of America Corp., Morgan Stanley and Blackstone/GSO Secured Lending Fund.

The issuance pushed last week’s corporate volume to about $15 billion, in addition to $8 billion of notes priced from sovereign, supranational and agency issuers.

Market tone was soft over the session.

The Markit CDX North American Investment Grade 35 index eased 2 basis points on Monday to a spread of 58.5 bps.

The PIMCO Investment Grade Corporate Bond index declined 0.26% to 114.96 on the day.

The iShares iBoxx Investment Grade Corporate Bond ETF rose 0.19% to $135.08.

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