Capital One, Sabal, Toyota sell notes; strong May supply forecast; Amazon.com firms

By Cristal Cody

Tupelo, Miss., April 26 – A handful of issuers tapped the high-grade primary market on Thursday with supply thinning as April comes to a close.

Capital One Financial Corp. sold $2 billion of senior notes in two tranches.

Sabal Trail Transmission LLC came with a $1.5 billion three-part offering of senior notes following fixed-income investor calls held Tuesday.

Also, Toyota Motor Credit Corp. priced $150 million of seven-year floating-rate medium-term notes.

More than $23 billion of high-grade bonds have priced over the week.

Heavy deal volume is expected in May with one syndicate source forecasting as much as $140 billion of new issuance for the month ahead.

The Markit CDX North American Investment Grade 30 index firmed more than 1 basis point over the day to end at a spread of 60 bps.

In the secondary market, Amazon.com, Inc.’s 3.15% notes due Aug. 22, 2027 tightened 6 bps after the company announced better-than-expected first quarter earnings on Thursday.

In other secondary trading, CVS Health Corp.’s new senior notes (Baa1/BBB+) were mixed.

CVS Health’s 4.3% senior notes due March 25, 2028 were flat on the day at 148.1 bps bid, according to a market source.

The company’s 5.05% notes due March 25, 2048 firmed about 1 bp to 179 bps bid.

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