CVS, NiSource, Marriott, Agree, Eversource sell high-grade notes; Kommuninvest on tap

By Cristal Cody

Tupelo, Miss., Aug. 12 – Investment-grade issuers kept primary action steady on Wednesday with more than $8 billion of bonds priced.

Week to date, deal volume already has beaten syndicate forecasts for the entire week.

Heading up the day’s supply, CVS Health Corp. priced $4 billion of senior notes (Baa2/BBB) in three tranches to fund tender offers for outstanding bonds.

NiSource Inc. also sold $2 billion of senior notes (Baa2/BBB+/BBB) in two tranches to fund tender offers for outstanding notes.

Meanwhile, Public Service Enterprise Group Inc. brought $1.1 billion of senior notes (Baa1/BBB) in two tranches to the primary market.

Marriott International Inc. tapped the market with $1 billion of senior notes due Oct. 15, 2032 (Baa3/BBB-) on Wednesday.

Agree LP came by with a $350 million offering of 10-year guaranteed senior notes (Baa2/BBB) that was upsized from $300 million.

In addition, Public Service Co. of New Hampshire, doing business as Eversource Energy, priced $150 million of 30-year first mortgage bonds (A1/A+/A+) during the session.

Deal volume totals about $40 billion week to date, beating market forecasts of about $25 billion to $30 billion of issuance for the week.

Investment-grade issuers priced more than $13 billion of bonds on Monday and over $18 billion of bonds on Tuesday.

Coming up on Thursday, the Federal Home Loan Bank System intends to price a new two-year Global note.

Also on Thursday, Kommuninvest i Sverige AB (Aaa/AAA) plans to sell $1 billion of notes due Dec. 1, 2022. Initial price talk is in the mid-swaps plus 10 basis points area.

The Markit CDX North American Investment Grade 33 index firmed nearly 2 bps to close the day at a spread of 65.35 bps.

Eversource firms

In the secondary market, trading volume has slowed in August, according to market sources and Trace data.

On Tuesday, $20.1 billion of high-grade bonds were traded, while just $15.49 billion of corporate notes traded on Monday.

Eversource Energy’s $1.2 billion of senior notes (Baa1/BBB+/BBB+) that priced in three tranches on Tuesday improved about 2 bps to 7 bps, a source said.

A $600 million tranche of 1.65% notes due Aug. 15, 2030 firmed to 93 bps bid.

The notes priced at a spread of Treasuries plus 100 bps, tighter than initial talk at the 130 bps spread area.

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