BP, Owl Rock, Virginia Electric, Edison, Principal Life, CSX, Ally, Kommunalbanken sell notes

By Cristal Cody

Tupelo, Miss., Dec. 1 – December kicked off with more than $8 billion of investment-grade corporate and sovereign, supranational and agency bonds sold on Tuesday.

BP Capital Markets America Inc. tapped the primary market with $1.5 billion of notes due June 4, 2051 (A1/A-).

Prosus NV sold $1.5 billion of senior notes due Feb. 8, 2051 (Baa3/BBB-/) during the session.

Owl Rock Capital Corp. priced $1 billion of senior notes due July 15, 2026 (Baa3/BBB-/BBB-) in a deal upsized from $400 million.

Virginia Electric and Power Co. brought $900 million of 30-year senior notes (A2/BBB+/A) to the market.

At the other end of the curve, Southern California Edison Co. priced $900 million of one-year floating-rate first and refunding mortgage bonds (A3/A-/BBB+) on Tuesday.

In other issuance, Principal Life Global Funding II sold $600 million of senior secured notes due Jan. 12, 2024 (A1/A+/) that are backed by funding agreements.

CSX Corp. came by with $500 million of senior notes due May 15, 2051 (Baa1/BBB+/) on Tuesday.

Also, Ally Financial Inc. priced a $450 million add-on to the company’s 1.45% senior notes due Oct. 2, 2023 (/BBB-/BBB-) in an offering upsized from $300 million.

SSA offering

In the SSA space, Kommunalbanken Norway (Aaa/AAA/) priced a $1.5 billion Rule 144A and Regulation S offering of three-year notes on Tuesday.

Corporate deal volume totals nearly $13 billion week to date following $5.5 billion of supply on Monday.

About $15 billion to $20 billion of high-grade issuance is expected this week, according to syndicate sources.

Looking at December’s volume, about $25 billion to $35 billion or more of corporate bonds are forecast to price over the month.

Market tone was was mostly positive on Tuesday with the Nasdaq and S&P 500 hitting record highs by the close.

The Markit CDX North American Investment Grade 35 index tightened to 49.28 basis points from a spread of 50.6 bps on Monday.

The PIMCO Investment Grade Corporate Bond index softened 0.32% to $116.49.

The iShares iBoxx Investment Grade Corporate Bond ETF ended the day 0.38% lower at $137.68.

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