GlaxoSmithKline sells $3.5 billion notes; Target, SEB, utilities tap high-grade market

By Cristal Cody

Tupelo, Miss., March 18 – GlaxoSmithKline Capital plc led deal volume in the high-grade bond market on Monday with a $3.5 billion three-tranche offering of notes.

The company dropped a floating-rate tranche from the final deal.

Also during the session, Target Corp. priced $1 billion of 10-year notes.

Skandinaviska Enskilda Banken AB sold $750 million of three-year senior notes.

In addition, a handful of utility issuers tapped the primary market on Monday.

Kansas City Power & Light Co. priced $400 million of 30-year mortgage bonds.

Louisville Gas and Electric Co. sold $400 million of 30-year first mortgage bonds.

Kentucky Utilities Co. placed a $300 million add-on to its 4.375% first mortgage bonds due Oct. 1, 2045.

About $20 billion to as much as $30 billion of investment-grade issuance is expected by syndicate sources this week following more than $27 billion of supply last week.

Coming up on Tuesday, the Federal Reserve will kick off its two-day monetary policy meeting.

The Markit CDX North American Investment Grade 31 index closed the day about 1 basis point tighter at a spread of 57 bps.

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