CIBC prices $1.25 billion; Apollo, FS KKR in primary; Reinsurance Group on investor calls

By Cristal Cody

Tupelo, Miss., Dec. 10 – Three reported corporate issuers tapped the high-grade primary market on Tuesday as issuance continues to slow before the year’s end.

Canadian Imperial Bank of Commerce sold $1.25 billion of floating-rate senior notes due March 17, 2023 on top of guidance.

Apollo Management Holdings LP priced $300 million of guaranteed resettable subordinated notes due Jan. 14, 2050 tighter than initial talk.

In addition, FS KKR Capital Corp. priced a $45 million add-on to its 4.125% notes due Feb. 1, 2025, bringing the outstanding issue size to $470 million.

Investment-grade issuers have sold more than $4.5 billion of bonds week to date, near the $5 billion to $10 billion range syndicate sources forecasted.

Heavier volume was anticipated in the first two sessions of the week ahead of the Federal Reserve’s monetary policy rate decision due on Wednesday, market sources report.

No changes are forecast in the Federal Reserve’s monetary policy following three rate cuts this year, a source said.

In other activity on Tuesday, Reinsurance Group of America, Inc. continued a second day of fixed income investor calls for a possible bond offering, a market source said.

J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the arrangers.

The Markit CDX North American Investment Grade 33 index tightened modestly on the day to a spread of 49.9 basis points.

Looking at the secondary market, bonds were mixed.

AbbVie Inc.’s 3.2% notes due Nov. 21, 2029 were mostly unchanged on the day but traded more than 15 bps tighter than where the issue priced in November.

Dominion Energy Gas Holdings, LLC’s 3% senior notes due Nov. 15, 2029 eased about 1 bp during the session.

CIBC sells floaters

Canadian Imperial Bank of Commerce (Aa2/A+/AA-) priced $1.25 billion of floating-rate senior notes due March 17, 2023 (A2/BBB+/AA-) at par to yield the Secured Overnight Financing Rate plus 80 bps on Tuesday, according to a market source and an FWP filed with the Securities and Exchange Commission.

The notes priced on top of guidance of SOFR plus 80 bps.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc. and CIBC World Markets Corp. were the bookrunners.

The diversified financial institution is based in Toronto.

Apollo prints $300 million

Apollo Management Holdings priced $300 million of 4.95% guaranteed resettable subordinated notes due Jan. 14, 2050 (/BBB+/BBB+) at a spread of 326.6 bps over Treasuries on Tuesday, according to a market source.

Initial price talk was in the 5.25% area.

BofA Securities, Inc., Citigroup and Goldman Sachs & Co. LLC were the bookrunners of the Rule 144A and Regulation S transaction.

The notes are guaranteed by indirect subsidiaries Apollo Principal Holdings I LP, Apollo Principal Holdings II LP, Apollo Principal Holdings III LP, Apollo Principal Holdings IV LP, Apollo Principal Holdings V LP, Apollo Principal Holdings VI LP, Apollo Principal Holdings VII LP, Apollo Principal Holdings VIII LP, Apollo Principal Holdings IX LP, Apollo Principal Holdings X LP, Apollo Principal Holdings XI LLC, Apollo Principal Holdings XII LP and AMH Holdings (Cayman) LP.

Apollo Management is an indirect subsidiary of New York City-based Apollo Global Management, Inc.

AbbVie trades tighter

AbbVie’s 3.2% notes due Nov. 21, 2029 (Baa2/A-/) traded flat to modestly softer over the day at 113 bps bid, according to a market source.

The notes ended November in the 128 bps bid area.

AbbVie priced $5.5 billion of the bonds on Nov. 12 as part of a $30 billion 10-part deal at a Treasuries plus 130 bps spread.

AbbVie is a biopharmaceutical company based in North Chicago, Ill.

Dominion Energy eases

Dominion Energy Gas Holdings’ 3% senior notes due Nov. 15, 2029 (Baa1/BBB+/BBB+) traded about 1 bp wider on Tuesday at 124 bps bid, according to a market source.

The company sold $600 million of the 10-year notes on Nov. 18 at a Treasuries plus 123 bps spread.

Dominion Energy Gas Holdings is a Richmond, Va.-based natural gas company and subsidiary of Dominion Energy Inc.

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