Blackstone/GSO price $300 million; NWB, Kommuninvest, International Development in pipeline

By Cristal Cody

Tupelo, Miss., Nov. 23 – Blackstone/GSO Secured Lending Fund priced an upsized $300 million Rule 144A and Regulation S reopening of its 3.625% senior notes due Jan. 15, 2026 (Baa3//BBB-) on Monday as the sole reported corporate issuer in the high-grade bond market.

The deal was upsized from $150 million.

Light activity is expected over the Thanksgiving Day holiday week with up to about $5 billion of supply forecast, according to syndicate sources.

The bond markets will close on Thursday and will close early at 2 p.m. ET on Friday.

Sovereign, supranational and agency pricing action is expected to heat up on Tuesday with several deals in the pipeline.

Nederlandse Waterschapsbank NV plans to bring $1 billion of five-year senior notes (Aaa/AAA/) to the primary market on Tuesday.

Kommuninvest I Sverige AB (Aaa/AAA/) also is marketing $1 billion of notes due Aug. 9, 2023 in a transaction expected to price on Tuesday.

In addition, International Development Association (Aaa/AAA) intends to price a dollar-denominated Rule 144A and Regulation S offering of senior notes due Dec. 3, 2030 on Tuesday.

Last week, supply beat market expectations with more than $40 billion of corporate deals and $13 billion of SSA bonds sold.

Looking to December, about $25 billion to $35 billion or more of new investment-grade corporate issuance is anticipated.

Credit spreads tighten

Market tone was positive over Monday’s session with equities mostly up on additional Covid-19 vaccine headway reports.

The PIMCO Investment Grade Corporate Bond index rose 0.04% at $116.74.

The iShares iBoxx Investment Grade Corporate Bond ETF improved 0.12% to $137.74.

Credit spreads tightened more than 2 basis points from Friday.

The Markit CDX North American Investment Grade 35 index firmed 2.29 bps to a spread of 54.22 bps.

High-grade bonds were mixed in the secondary market.

Verizon Communications Inc.’s $12 billion of senior notes (Baa1/BBB+/A-) that priced in five tranches on Nov. 10 were stronger on the long end, a source said.

The company’s 2.875% notes due Nov. 20, 2050 traded Monday at 104, better than where the issue was seen on Thursday over 103.50.

Verizon sold $2.75 billion of the notes on Nov. 10 at 99.74 to yield 2.89%.

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