BP, Activision, BNP, Barclays, Aircastle, Piedmont, Tucson Power price; Alphabet mixed

By Cristal Cody

Tupelo, Miss., Aug. 5 – Investment-grade issuers kept pricing action strong on Wednesday with $8.75 billion of paper priced over the session.

Volume was led by a $2.5 billion offering of senior notes from BP Capital Markets America Inc. (A1/A-/) that priced tighter than talk.

Activision Blizzard, Inc. brought $2 billion of senior notes in two tranches (Baa1/A-/) to the primary market over the day.

In financial supply, BNP Paribas SA sold $1.5 billion of subordinated notes due Aug. 12, 2035 (Baa2/A-/BBB), while Barclays plc came by with $1.5 billion of fixed-rate resetting perpetual subordinated contingent convertible securities (Ba2//BBB-).

In other issuance, Aircastle Ltd. sold $650 million of five-year senior notes (Baa3/BBB-/BBB) 50 basis points tighter than initial talk.

Also on Wednesday, two high-grade issuers priced green notes following fixed income investor calls held in the prior session.

Piedmont Operating Partnership LP (Baa2/BBB) sold $300 million of 10-year green senior notes.

Tucson Electric Power Co. placed $300 million of 10-year green senior notes (A3/A-/).

Investment-grade supply totals about $30 billion week to date.

About $25 billion to $35 billion or more of issuance was expected by market participants for the week.

Overall deal volume this week has been led by a $10 billion six-tranche offering of senior notes Aa2/AA+/) from Google owner Alphabet Inc. on Monday.

Alphabet mixed

Market tone was mixed during the session.

The Markit CDX North American Investment Grade 33 index tightened nearly 2 bps over the day to a spread of 65.42 bps.

The PIMCO Investment Grade Corporate Bond index closed down 0.4% at 117.53.

The iShares iBoxx Investment Grade Corporate Bond ETF declined 0.14% to 138.56.

New high-grade issues were mixed in the secondary market, a source said.

Alphabet’s notes, which included three tranches of sustainability notes, traded flat to about 4 bps better than issuance.

The company’s 1.1% sustainability notes due Aug. 15, 2030 firmed about 2 bps.

Alphabet sold $2.25 billion of the notes at 99.726 to yield 1.129% and a Treasuries plus 58 bps spread.

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