Royalty Pharma, Glencore, Nordea, Entergy, Alabama Power, PPG price; SSA issuers in pipeline

By Cristal Cody

Tupelo, Miss., Aug. 24 – Royalty Pharma plc led high-grade bond supply on Monday with $6 billion of guaranteed senior notes (Baa3/BBB-/BBB-) priced in six tranches in a Rule 144A and Regulation S offering.

The notes all priced tighter than talk.

Also over the day, Glencore Funding LLC sold $2 billion of senior notes (Baa1/BBB+/) in two tranches.

Nordea Bank AB brought $1 billion of five-year senior notes (Aa3/AA-/AA) to the primary market.

Entergy Corp. priced $800 million of five-year senior notes (Baa2/BBB/).

Nationwide Building Society came by with $750 million of five-year senior notes (A1/A/A+).

Alabama Power Co. priced $600 million of 10-year senior notes in a deal upsized from $500 million.

Also, PPG Industries, Inc. priced a $100 million add-on to its 3.75% notes due March 15, 2028 (A3/BBB+/A-) that were first offered in 2018.

In the meantime, sovereign, supranational and agency supply is in the works for Tuesday.

Landwirtschaftliche Rentenbank (Aaa/AAA/AAA) plans to price registered dollar-denominated 10-year senior notes. Initial price talk is in the mid-swaps plus 21 basis points area.

The Inter-American Development Bank (Aaa/AAA/) is marketing three-year global notes to price on Tuesday.

Initial price talk is in the mid-swaps plus 5 bps area.

In addition, Japan Finance Organization for Municipalities (A1/A+/) intends to price a Rule 144A and Regulation S dollar-denominated offering of five-year senior notes that are talked to print in the mid-swaps plus 42 bps area.

Corporate issuers priced more than $11 billion of notes on Monday.

About $15 billion to $20 billion of high-grade deal volume is expected by market participants this week following about $45 billion of corporate and SSA issuance last week.

The Markit CDX North American Investment Grade 33 index finished Monday nearly 2 bps tighter from Friday at a spread of 66.06 bps.

The PIMCO Investment Grade Corporate Bond index closed flat at 116.00.

The iShares iBoxx Investment Grade Corporate Bond ETF ended the day down 0.18% at 136.21.

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