High-grade issuers flood primary; Gilead, Equinix, AerCap price; Ontario Teachers in pipeline

By Cristal Cody

Tupelo, Miss., Sept. 23 – Investment-grade issuers priced more than $18 billion of corporate bonds in the primary market over Wednesday’s session.

Gilead Sciences Inc. led pricing action with $6.75 billion of senior notes (A3/A) sold in six tranches.

In other issuance, Centene Corp. priced $2.2 billion of 10-year split-rated senior notes (Ba1/BBB-/BB+).

Equinix, Inc. placed $1.85 billion of senior notes (Baa3/BBB-/BBB-) in three tranches.

AerCap Ireland Capital DAC and AerCap Global Aviation Trust priced $1.5 billion of guaranteed senior notes (Baa3/BBB-/BBB-) in two tranches.

Aker BP ASA brought a $1.25 billion two-part offering of split-rated senior notes (Ba1/BBB-/BBB-) to the primary market.

BNP Paribas SA (Aa3/A+/A+) priced $1.25 billion of fixed-to-floating-rate notes due Sept. 28, 2028.

American Tower Corp. sold a $1.1 billion two-part offering of new and reopened senior notes (Baa3/BBB-/BBB) during the session.

Atmos Energy Corp. printed $600 million of senior notes due Jan. 15, 2031 (A1/A).

Toronto-Dominion Bank priced $500 million of senior floating-rate medium-term sustainable notes due Sept. 28, 2023 (Aa3/A) on Wednesday.

Brookfield Finance Inc. brought $500 million of guaranteed senior notes due March 30, 2051 (Baa1/A-/A-) to the market.

CenterPoint Energy Resources Corp. sold $500 million of 10-year senior notes (A3/BBB+ /BBB+).

Oncor Electric Delivery Co. LLC priced $450 million of five-year senior secured sustainability bonds (A2/A+/A).

New York State Electric & Gas Corp. came by with $200 million of 10-year senior notes (A3/A-/A-).

Also on Wednesday, Consumers Energy Co. offered 50-year floating-rate first mortgage bonds (Aa3/A/A+) at Libor minus 30 basis points.

SSA primary active

In sovereign, supranational and agency volume, Swedish Export Credit Corp. priced $1.25 billion of three-year global notes (Aa1/AA+) on Wednesday.

Also, Freddie Mac sold $5 billion of five-year Reference Notes.

Meanwhile, Ontario Teachers’ Finance Trust (Aa1/AA+) marketed a Rule 144A and Regulation S two-part dollar-denominated offering of senior notes that are expected to price on Thursday.

The offering includes three-year notes with initial price talk in the mid-swaps plus 28 bps area and 10-year notes talked at the mid-swaps plus 65 bps area.

In other activity, Hydro One Ltd. marketed C$425 million of seven-year senior notes (expected ratings /BBB+/DBRS: A) in an inaugural offering following a fixed income investor presentation on Tuesday.

The high-grade primary market stayed quiet on Monday, while volume climbed to more than $15 billion on Tuesday.

Corporate supply totals more than $33 billion week to date.

About $30 billion to $35 billion of issuance is forecast for the week.

Credit spreads widened over the session.

The Markit CDX North American Investment Grade 35 index eased nearly 5 bps on Wednesday to a spread of 57.37 bps.

The iShares iBoxx Investment Grade Corporate Bond ETF softened 0.72% to 134.70.

The Pimco Investment Grade Corporate Bond Index declined 0.47% over the day to 114.94.

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