Morning Commentary: Duke Energy, Triumph, Las Vegas Sands, Centene market bonds

By Cristal Cody

Tupelo, Miss., Nov. 21 – A few issuers offered new high-grade bonds early Thursday, while one company is scheduled to hold fixed income investor calls for a possible deal during the session.

Duke Energy Florida, LLC (A3/A-) is offering two tranches of registered bonds. The deal includes floating-rate senior notes due 2021 and first mortgage bonds due 2029.

Triumph Bancorp, Inc. intends to price registered 10-year fixed-to-floating rate subordinated notes (Kroll: BBB-).

Las Vegas Sands Corp. is marketing registered fixed-rate senior notes (Baa3/BBB-/BBB-).

Centene Corp. is expected to bring $7 billion of split-rated notes (Ba1/BBB-/BB+) in three tranches in a Rule 144A and Regulation S deal to the primary market on Thursday, a source said.

The deal is being run off the high-yield desks.

Meanwhile, Heineken NV (Baa1/BBB+) will hold fixed income investor calls on Thursday for a possible high-grade bond offering, according to a market source. J.P. Morgan Securities LLC is the arranger.

Week to date, supply totals about $17 billion. Market sources expected about $25 billion of volume for the week.

In the secondary market, new issues are mixed, sources report.

Diamondback Energy, Inc.’s $3 billion of split-rated senior notes (Ba1/BBB-/BBB) that priced in three tranches on Wednesday were modestly softer in early trading.

The company’s $1.2 billion tranche of 3.5% notes due Dec. 1, 2029 traded down at 99.28 from where the issue went out on Wednesday at 99.38, a source said.

The notes priced at 99.741 to yield 3.531% and a 180 basis points over Treasuries spread.

Estee Lauder Cos. Inc.’s $1.8 billion of senior notes (A1/A+) sold in three tranches on Tuesday saw heavy trading in the previous session, according to a market source.

The company’s $650 million tranche of 2.375% notes due Dec. 1, 2029 traded early Thursday slightly weaker at 99.34, down from 99.66 on Wednesday.

The notes priced at 99.046 to yield 2.483% and a Treasuries plus 70 bps spread.

Investment-grade corporate secondary market volume included $19.67 billion of bonds traded on Wednesday, compared to $20.59 billion on Tuesday and $18.25 billion on Monday, according to Trace data.

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