Morning Commentary: AutoZone, Moody’s, PSE&G, Schlumberger, Paccar to price notes

By Cristal Cody

Tupelo, Miss., Aug. 4 – The high-grade primary market is expected to remain busy on Tuesday following more than $17 billion of issuance on Monday, sources report.

AutoZone, Inc. (Baa1/BBB/BBB) is offering $600 million of senior notes due Jan. 15, 2031 with initial price talk at the Treasuries plus 145 basis points area.

Moody’s Corp. plans to bring a $500 million offering of 40-year senior notes (BBB+/BBB+) on Tuesday. Initial price talk is in the Treasuries plus 175 bps area.

Boardwalk Pipelines, LP also is offering $500 million of guaranteed senior notes due Feb. 15, 2031 (Baa3/BBB-/BBB-) over the session. The notes are talked to print with a spread in the 325 bps over Treasuries area.

In other supply expected, Block Financial LLC intends to price 10-year notes guaranteed by H&R Block, Inc. on Tuesday. Initial guidance is in the Treasuries plus 375 bps to 387.5 bps area.

New York Life Global Funding is marketing a $400 million offering of 10-year senior secured notes (Aaa/AA+/AAA) over the day.

Initial price talk is in the Treasuries plus 87.5 bps area.

Meanwhile, Public Service Electric and Gas Co. is offering $375 million of 30-year secured medium-term notes (Aa3/AA/A+) on Tuesday. The notes are talked to price at the 115 bps over Treasuries area.

Schlumberger Investment SA intends to price a $350 million add-on to its 2.65% notes due June 26, 2030 (A2/A) during the session. The issue is talked to price at the Treasuries plus 180 bps to 185 bps area.

Schlumberger Investment first sold $900 million of the notes on June 17 at a spread of Treasuries plus 195 bps.

Also on Tuesday, Paccar Financial Corp. (A1/A+) is coming to the primary market with an offering of three-year medium-term notes a day after releasing its 10-Q filing for the period ended June 30.

The company plans to price $300 million of three-year medium-term notes with initial price talk in the Treasuries plus 50 bps area.

August kicked off with strong issuance on Monday, led by a $10 billion six-tranche offering of senior notes (Aa2/AA+) from Google owner Alphabet Inc.

About $25 billion to $35 billion or more of issuance is expected by market participants this week with the month forecast to post about $60 billion to $70 billion of high-grade volume.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.