HSBC, Apollo, Spirit AeroSystems price; Santander preps notes; Southern firms; CDX tighter

By Cristal Cody

Eureka Springs, Ark., May 24 – Investment-grade primary action remained strong on Tuesday with deal activity expected to continue on Wednesday before slowing ahead of the Memorial Day holiday.

HSBC Holdings plc sold $2 billion of 6.875% perpetual subordinated contingent convertible securities at par to yield a spread of 547.7 bps over Treasuries on Tuesday, according to an FWP filing with the Securities and Exchange Commission.

HSBC Securities (USA) Inc. was the bookrunner.

The notes are convertible into shares of HSBC upon the occurrence of a capital adequacy trigger event.

Proceeds will be used for general corporate purposes and to strengthen the company’s capital base.

Apollo Management Holdings, LP brought $500 million of 10-year senior notes to market on Tuesday.

Spirit AeroSystems, Inc. priced $300 million of 10-year senior notes during the session.

Details also emerged about a 100-year bond offering from private liberal arts college Wesleyan University.

Coming up, Santander Holdings USA Inc. plans to return to the primary market with an offering of floating-rate notes following the company’s $1 billion sale on Monday of three-year notes.

The Markit CDX North American Investment Grade index closed the day 4 basis points tighter at a spread of 79 bps.

In the secondary market, Southern Co.’s 3.25% senior notes due 2026 traded about 4 bps better from Monday.

Dell, Inc.’s 6.02% senior secured notes due 2026 were seen 2 bps weaker in secondary trading earlier on Tuesday.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.