Morning Commentary: Mizuho offers bonds; Simon, Nomura, Realty Income, Jabil on tap

By Cristal Cody

Tupelo, Miss., July 6 – At least five companies are offering bonds in the high-grade primary market on Monday following the long Independence Day holiday weekend in the United States, sources report.

Mizuho Financial Group, Inc. expects to bring three tranches of senior notes (A1/A-) during the session in the first diversity and inclusion bond offering for a Japanese bank.

The deal includes four-year fixed-to-floating rate notes with initial price talk at the Treasuries plus 130 basis points area, four-year floating-rate notes talked at a Libor benchmark and 11-year fixed-to-floating rate notes guided at the Treasuries plus 180 bps area.

Simon Property Group LP is on deck with three tranches of notes (A2/A/A), including a reopening of its 3.5% notes due Sept. 1, 2025 that were originally issued on Aug. 17, 2015.

Nomura Holdings Inc. is marketing two tranches of fixed-rate senior notes (Baa1/BBB+/A-) due 2025 and 2030.

Also on Monday, Realty Income Corp. is marketing an add-on to its 3.25% senior notes due Jan. 15, 2031 (A3/A-/BBB+) that were first priced on May 6. The company sold $600 million of the notes in the May offering at 98.987 to yield 3.364%, or a spread of 265 bps over Treasuries.

In addition, Jabil Inc. is offering fixed-rate senior notes (Baa3/BBB-/BBB-) during the session.

About $20 billion to $25 billion of volume is expected this week after about $15 billion of bonds priced ahead of the holiday, according to syndicate sources.

Market tone was positive at the open on Monday.

The iShares iBoxx Investment Grade Corporate Bond ETF improved 0.04% to 135.11.

The Piimco Investment Grade Corporate Bond index rose 0.16% to 114.68.

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