Toyota, O’Reilly, Southern Gas price; HSBC, GlaxoSmithKline offer notes; Barclays improves

By Cristal Cody

Tupelo, Miss., May 10 – Investment-grade issuers including Toyota Motor Credit Corp., O’Reilly Automotive, Inc. and Southern California Gas Co. tapped the primary market on Thursday.

Toyota Motor Credit sold $1.9 billion of floating-rate notes in two tranches.

O’Reilly Automotive priced $500 million of 10-year senior notes.

Southern California Gas sold $400 million of 30-year first mortgage bonds.

In addition, HSBC Holdings plc and GlaxoSmithKline plc were marketing major bond deals during the session.

More than $31 billion of high-grade bonds have priced week to date.

Syndicate sources expected about $30 billion to $35 billion of bond issuance for the week.

The Markit CDX North American Investment Grade 30 index tightened about 2 basis points over the day to a spread of 60 bps.

In the secondary market, Barclays plc’s paper traded about 2 bps to 4 bps tighter on Thursday following the company’s $4.5 billion three-part note sale in the previous session, a market source said.

HSBC’s existing notes were mixed, trading about 1 bp wider to 2 bps tighter, according to the market source.

Elsewhere, bank and financial paper overall was mostly flat on the day.

General Dynamics Corp.’s $7.5 billion of senior notes (A2/A+/A) brought to the market in seven tranches on Tuesday have tightened about 8 bps to 10 bps in the secondary market, another source said.

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