Hanover, Florida Power, Japan Development Bank, IBRD in primary; Royalty Pharma, IFC on tap

By Cristal Cody

Tupelo, Miss., Aug. 19 – A handful of issuers offered bonds in the corporate and sovereign, supranational and agency primary markets over Wednesday’s session.

Hanover Insurance Group Inc. priced $300 million of 10-year notes (Baa2/BBB/) 40 basis points tighter than talk.

Florida Power & Light Co. sold $145.1 million of floating-rate notes due Aug. 24, 2070.

Meanwhile, International Bank for Reconstruction and Development, or World Bank, priced a $3 billion offering of 10-year global sustainable development notes (Aaa/AAA/AAA) during the session.

Also, Development Bank of Japan Inc. priced a $1.7 billion Rule 144A and Regulation S two-part offering of fixed-rate senior notes (A1/A+) on Wednesday.

The deal included $700 million of five-year notes and a $1 billion tranche of 10-year notes.

In other activity, International Finance Corp. (Aaa/AAA/) is expected to bring $1 billion of 10-year global notes to the primary market on Thursday.

Initial price talk is in the mid-swaps plus 18 bps area.

Also, Royalty Pharma plc held fixed income investor calls over the day for a Rule 144A and Regulation S dollar-denominated offering of senior notes (Baa3/BBB-/BBB-) expected to price in multiple tranches.

The notes are guaranteed by Royalty Pharma Holdings Ltd.

Investment-grade corporate volume totals more than $27 billion week to date, while corporate and SSA supply tops $34 billion so far this week.

About $30 billion to $40 billion of issuance was forecast for the week.

Market tone softened over the day following the release of the minutes from the Federal Reserve’s July monetary policy meeting.

The Markit CDX North American Investment Grade 33 index eased more than 1 bp to close at a spread of 67.71 bps.

The PIMCO Investment Grade Corporate Bond index fell 0.09% to 115.68.

The iShares iBoxx Investment Grade Corporate Bond ETF declined 0.26% to 135.72.

Roper mixed

New issues priced this week were mixed in secondary trading, a source said.

Roper Technologies, Inc.’s $2.7 billion of senior notes (Baa2/BBB+/) priced in four tranches on Tuesday traded flat to about 6 bps tighter.

The company’s 1.75% notes due Feb. 15, 2031 were wrapped around issuance.

Roper sold $1 billion of the notes at 99.839 to yield 1.767%, or a spread of 110 bps over Treasuries.

Initial price talk was at the 130 bps spread area.

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