MasterCard, San Diego Gas, Southwest Gas among issuers; Unibail-Rodamco-Westfield eyes deal

By Cristal Cody

Tupelo, Miss., May 28 – Four high-grade issuers tapped the primary market on Tuesday following the long Memorial Day holiday weekend.

MasterCard Inc. priced $2 billion of fixed-rate notes in two tranches.

San Diego Gas & Electric Co. sold $400 million of 30-year first mortgage bonds.

Southwest Gas Corp. sold $300 million of 30-year senior notes.

Pennsylvania Electric Co. sold $300 million of 10-year senior notes.

In other action on Tuesday, Unibail-Rodamco-Westfield SE held fixed income investor calls for an upcoming dollar-denominated Rule 144A and Regulation S offering of senior notes.

About $10 billion to $15 billion of deal volume is expected this week, according to syndicate sources.

Year to date, investment-grade issuance of $546 billion is down 10% over last year’s pace due to lower mergers-and-acquisitions-related funding, according to a BofA Merrill Lynch report released on Tuesday.

“The key driver of this decline is M&A-financing,” BofA Merrill Lynch analysts said in the note.

M&A-related supply year to date stands at $91 billion, down from the $130 billion of bonds priced to fund mergers in the same period last year.

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