GlaxoSmithKline, Toyota, PPL, Entergy, Edison price; investment-grade credit spreads firm

By Cristal Cody

Tupelo, Miss., Sept. 28 – Several reported investment-grade issuers priced bonds on Monday in what is expected to be a lighter volume week as September and the third quarter close.

GlaxoSmithKline Capital plc priced $1.25 billion of three-year guaranteed notes (A2/A/) during the session.

Toyota Motor Credit Corp. sold $1.14 billion of floating-rate medium-term notes due Oct. 1, 2021 (A1/A+/A+).

Entergy Texas Inc. tapped the primary market with $600 million of first mortgage bonds due March 15, 2031 (Baa1/A/) on Monday.

Southern California Edison Co. priced $350 million of first and refunding mortgage bonds due Feb. 1, 2026 (A3/A-/BBB+).

PPL Electric Utilities Corp. sold $250 million of floating-rate first mortgage bonds due Sept. 28, 2023 (A1/A/) on Monday.

In addition, National Rural Utilities Cooperative Finance Corp. offered fixed-rate green collateral trust bonds.

Elsewhere, Toronto-Dominion Bank announced on Monday that it closed on its previously reported $500 million inaugural offering of sustainability bonds due Sept. 28, 2023 (Aa3/A/) that priced on Wednesday.

The bonds are the first to be issued under the bank’s sustainable bonds framework with proceeds slated for environmentally or socially responsible projects, such as green buildings and clean transportation.

“We're excited to build on the momentum of our previous green bond offerings and help support long-term sustainability goals,” Barbara Hooper, executive vice president of TD Bank’s treasury, corporate development and strategic sourcing, said in a release.

Toronto-Dominion Bank priced $500 million of the floating-rate notes at par to yield SOFR plus 45 basis points.

Initial price talk was in the SOFR plus 55 bps to 60 bps area.

Market tone was positive over the day with domestic stocks higher.

The Markit CDX North American Investment Grade 35 index closed nearly 2 bps tighter from Friday at a spread of 57.28 bps.

The iShares iBoxx Investment Grade Corporate Bond ETF rose 0.51% to 134.90 on the day.

The PIMCO Investment Grade Corporate Bond Index improved 0.59% to 115.06.

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