Strong high-grade supply builds; Haleon in deal pipeline; new energy, financial paper tighter

By Cristal Cody

Tupelo, Miss., March 18 – High-grade supply is set to remain strong in the week ahead, anchored by a multiple-currency offering expected from Haleon plc (GlaxoSmithKline).

The company is eyed to print as early as Monday after holding fixed-income investor calls Thursday and Friday for a £10.5 billion multiple-currency offering of dollar, euro and sterling notes, a source said.

About $30 billion to $35 billion of new investment-grade issuance is forecast to price in the week ahead, according to market sources.

Investment-grade corporate issuers sold over $29 billion of notes this week across sectors including mining and tobacco with deal volume heaviest in the bank, insurance, and energy spaces.

The new paper was mostly tighter in the secondary market.

Southwest Gas strong

Brown & Brown Inc.’s $1.2 billion two-part offering of senior notes (Baa3/BBB-) came in about 5 basis points to 9 bps, a source said.

The $600 million tranche of 4.95% bonds due 2052 firmed 9 bps to 246 bps offered.

Brown & Brown sold the notes on Monday at a Treasuries plus 255 bps spread, better than talk at the 280 bps over Treasuries area.

New energy bonds over the week were seen about 2 bps to 8 bps stronger than issuance.

Puget Sound Energy Inc.’s 4.224% notes due 2032 (Baa3/BBB-) traded 4 bps better at 206 bps offered, a source said.

Puget sold $450 million of the notes on Monday at par to yield a Treasuries plus 210 bps spread.

Price talk was at the 230 bps spread area.

Southwest Gas Corp.’s new issue on Thursday was among the strongest in the primary and secondary markets, sources said.

The company’s $600 million tranche of 4.05% senior notes due 2032 (Baa1/BBB/A) priced 25 bps better than initial talk and tightened another 8 bps in secondary trading to 182 bps offered.

Financial paper firms

Bank and financial issues priced about 10 bps to over 20 bps better than talk and continued to improve in the secondary market during the week, sources said.

Macquarie Group Ltd.’s four tranches of notes came in about 5 bps to 6 bps following the print on Tuesday.

Macquarie’s largest tranche in the deal, a $1 billion offering of 3.231% notes due 2025 (A2/A+), tightened 6 bps to 114 bps offered.

The notes priced at a Treasuries plus 120 bps spread, better than talk in the 135 bps spread area.

Bank of America Corp.’s new 3.384% notes due 2026 (A2/A-) sold on Thursday improved to 111 bps offered.

Bank of America sold $3 billion of the notes at a Treasuries plus 123 bps spread, tighter than initial talk at the 145 bps area.

Wells Fargo & Co.’s new issuance on Thursday priced over 20 bps better than talk and came in nearly 20 bps in secondary trading.

The $4 billion tranche of 3.526% fixed-to-floating-rate notes due 2028 (A1/BBB+/A+) priced 22.5 bps tighter than initial guidance at a spread of Treasuries plus 137.5 bps.

The notes firmed to 121 bps offered in the secondary market.

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