L3Harris, Rexford, Verizon, Standard Chartered, Allianz in primary; credit spreads ease

By Cristal Cody

Tupelo, Miss., Nov. 10 – Strong pricing action continued in the high-grade primary market on Tuesday with deals from issuers including Verizon Communications Inc., Standard Chartered plc and L3Harris Technologies, Inc.

L3Harris Technologies priced $650 million of long 10-year senior notes (Baa2/BBB/BBB).

Rexford Industrial Realty, Inc. sold $400 million of 10-year guaranteed senior notes (Baa3/BBB/BBB) in a deal upsized from $300 million.

Verizon Communications offered five tranches of fixed-rate senior notes (Baa1/BBB+/A-).

The deal included five-year notes with initial talk at the Treasuries plus 60 basis points area, 10-year notes talked at the 105 bps spread area, 20-year notes talked at the 135 bps to 140 bps over Treasuries area, 30-year notes guided at the 135 bps spread area and 40-year notes talked to price at the Treasuries plus 150 bps spread area.

Standard Chartered also offered dollar-denominated subordinated notes due Feb. 18, 2036 (Baa2/BBB-/BBB+) with price talk in the Treasuries plus 260 bps spread area.

Other supply

In other issuance, Brighthouse Financial Inc. priced $500 million of split-rated $25-par preferred stock (Ba2/BBB-/BB+) in a deal upsized from $200 million on Tuesday.

Meanwhile, Allianz SE offered $1.25 billion of perpetual subordinated notes (A2/AA-/A) that were guided at the 3.875% area in a Rule 144A and Regulation S offering.

In addition, Procter & Gamble Co. marketed 50-year floating-rate notes (Aa3/AA-/).

The investment-grade primary market roared back to life on Monday with more than $19 billion of deal volume that was led by Bristol-Myers Squibb Co.’s $7 billion six-part offering of senior notes (A2/A+/).

About $25 billion to $30 billion of high-grade supply is expected this week with issuance anticipated to be front-loaded ahead of Wednesday’s Veterans Day holiday, syndicate sources said.

Last week, high-grade issuance totaled just $2.5 billion from a four-part offering of notes (Baa1/A-/BBB+) from Waste Management, Inc.

Market tone mostly softened over the day.

The Markit CDX North American Investment Grade 35 index eased about 1.67 bps to a spread of 52.95 bps.

The iShares iBoxx Investment Grade Corporate Bond ETF declined 0.26% to $134.81.

The PIMCO Investment Grade Corporate Bond index softened 0.3% to $114.76.

Stocks were mixed with the Dow Jones industrial average closing up 0.9%, the S&P 500 off 0.14% and the Nasdaq down 1.37%.

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