Hyundai, HSBC, Southern Co., UniCredit, CyrusOne, SSA issuers price; NVR taps 3% notes

By Cristal Cody

Tupelo, Miss., Sept. 15 – Investment-grade supply remained strong on Tuesday with more than $19 billion of corporate and sovereign, supranational and agency bonds priced over the day.

Hyundai Capital America (Baa1/BBB+) sold $2.5 billion of fixed-rate notes in three tranches.

HSBC Holdings plc brought $2 billion of fixed-to-floating-rate notes due Sept. 22, 2028 (A2/A-/A+) to the primary market.

Southern Co. priced $1.25 billion of fixed-to-fixed reset rate junior subordinated notes due Jan. 15, 2051 (Baa3/BBB/BBB-), as well as $750 million of $25-par junior subordinated notes due Oct. 15, 2060 Baa3/BBB/BBB-).

UniCredit SpA sold $1 billion of senior notes due June 22, 2026 (Baa2/BBB/BBB-).

AIG Global Funding priced an upsized $500 million offering of five-year senior secured notes (A2/A+).

CyrusOne LP and CyrusOne Finance Corp. sold $400 million of 10-year senior notes (Ba1/BBB-/BBB-).

Also, NVR, Inc. priced a $50 million tap of its 3% senior notes due May 15, 2030 (Baa1/BBB+/BBB+) that were reopened earlier in the month, pushing the total outstanding to $900 million.

SSA volume

In SSA primary action on Tuesday, Caisse d'Amortissement de la Dette Sociale (Aa2//AA) sold $4 billion of five-year senior notes.

KfW (Aaa/AAA/AAA) priced $4 billion of three-year global notes.

International Development Association (Aaa/AAA) came by with $2 billion of five-year senior sustainability notes.

In addition, the European Investment Bank (Aaa/AAA/AAA) sold $1.5 billion of 10-year global notes.

In other activity, numerous companies are reportedly holding fixed income investor calls and roadshows for potential and expected issuance.

Owl Rock Technology Finance Corp. is expected to price $300 million of senior notes due Dec. 15, 2025 (Baa3/Kroll: BBB) in a Rule 144A deal on Wednesday.

Delta Air Lines Inc. and SkyMiles IP Ltd. are marketing $4 billion of expected split-rated senior secured notes (//BBB) in five- and eight-year tranches over the week via deal calls.

About $35 billion to $40 billion of high-grade supply is expected by market participants this week with issuance front-loaded ahead of the Federal Reserve’s monetary policy decision due on Wednesday.

Week-to-date corporate issuance totals more than $20 billion.

More than $12 billion of high-grade notes priced on Monday.

In the secondary market, Kraft Heinz Foods Co.’s senior notes were active but steady going out following the company’s announcement it will sell its Kraft-branded block and shredded cheeses and other select cheese products to Groupe Lactalis for $3.2 billion.

The company’s 3.875% notes due May 15, 2027 (Baa3/BB+) traded at 106.5, compared to 106.28 on Monday, according to a market source.

The issue priced May 4 in a $1.35 billion tranche at par.

The Markit CDX North American Investment Grade 33 index firmed nearly 1 basis point on Tuesday to a spread of 67.72 bps.

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