Pacific Gas, Bank of America, Merck, Danske, BorgWarner, Perrigo, Welltower, Wabtec price

By Cristal Cody

Tupelo, Miss., June 16 – Investment-grade supply revved up on Tuesday to more than $28 billion with volume led by deals from Pacific Gas and Electric Co., Bank of America Corp. and Merck & Co., Inc.

Pacific Gas and Electric priced $8,925,000,000 of first mortgage bonds (Baa3/BBB-/BBB-) in six tranches in a deal upsized from an expected $5,925,000,000 offering as part of its reorganization funding from Chapter 11 bankruptcy.

Bank of America brought $6 billion of senior notes (A2/A-/A+) in two tranches to the primary market.

Merck priced $4.5 billion of fixed-rate notes (A1/AA-/) in four tranches.

Ford Motor Credit Co. LLC sold $1.75 billion of five-year notes (expected ratings Ba2/BB+) in a high-yield deal executed off the investment-grade desk.

Danske Bank A/S priced $1.25 billion of four-year notes (A3/A+/) during the session.

BorgWarner Inc. sold $1.1 billion of seven-year senior notes (Baa1/BBB/BBB+) on Tuesday.

Standard Industries Inc. priced $1.1 billion of split-rated 10-year senior notes (Ba2/BBB-) in a Rule 144A and Regulation S deal upsized from $500 million.

Perrigo Finance Unlimited Co. priced $750 million of 10-year guaranteed senior notes (Baa3/BBB-/) following fixed income investor calls on Friday.

Carrier Global Corp. came by with a $750 million Rule 144A and Regulation S offering of senior notes due March 15, 2031 (Baa3/BBB/BBB-).

Welltower Inc. sold $600 million of senior notes due Jan. 15, 2031 (Baa1/BBB+/BBB+) on Tuesday.

Westinghouse Air Brake Technologies Corp. (Ba1/BBB-/BBB-) priced $500 million of five-year senior notes in a deal upsized by $100 million.

CIT Group Inc. raised $500 million in an offering of four-year senior fixed-to-floating rate notes (Ba1/BB+/BBB-) on Tuesday.

Principal Life Global Funding II priced an upsized $500 million of five-year senior secured notes (A1/A+/) backed by funding agreements.

Also, Guardian Life Global Funding sold $400 million of five-year notes (Aa2/AA+/) backed by funding agreements on Tuesday.

In other supply, Office Properties Income Trust returned to the primary market on Tuesday after the company postponed a $300 million offering of long seven-year senior notes (Baa3/BBB-/) on May 6. The company sold $150 million of $25-par 30-year notes.

AT&T Inc. priced $1.05 billion of Formosa bonds due Sept. 1, 2050 (Baa2/BBB/A-) over the day.

In addition, Kommuninvest I Sverige AB (Aaa/AAA/) brought $1.25 billion of notes due Feb. 16, 2024 in a Rule 144A and Regulation S deal upsized from $1 billion.

Meanwhile, Upjohn Inc. is holding fixed income investor calls that started Monday for a multiple-tranche offering of senior notes (Baa3/BBB-/BBB) totaling about $12 billion as part of its spin-off from Pfizer Inc. and merger with Mylan NV.

About $20 billion to as much as $40 billion of high-grade supply is expected by market participants for the week.

On Monday, deal volume was light with two issuers reported in the primary market.

High-grade credit spreads continued to improve by more than 1 basis point on Tuesday after tightening over 9 bps in Monday’s session. The Markit CDX North American Investment Grade 33 index ended the session at a spread of 68.96 bps.

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