Host Hotels, Globe Life tap notes; supply thins; August closes out with record volume

By Cristal Cody

Tupelo, Miss., Aug. 31 – A couple of high-grade issuers tapped existing bonds on Monday as August closed with another record month of volume.

Host Hotels & Resorts, LP priced a $150 million reopening of its 3.5% 10-year green senior notes (Baa3/BBB-/BBB-) at a spread of Treasuries plus 300 basis points, unchanged from where the issue was first sold in a $600 million offering on Aug. 11. The total outstanding is now $750 million.

Also on Monday, Globe Life Inc. priced a $50 million add-on to its 2.15% senior notes due Aug. 15, 2030 (Baa1/A/BBB+) at a spread of Treasuries plus 147 bps, 3 bps tighter than where the issue first priced on Aug. 18 in a $350 million deal. The total outstanding is now $400 million.

Light supply is expected this week ahead of the Labor Day holiday with up to about $5 billion to as much as $15 billion of deal volume anticipated.

Deal volume hit a record $150.51 billion total in August from 175 high-grade issues, nearly double the $80.97 billion of volume seen in the same month last year from 111 issues, according to Prospect News data.

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