Morning Commentary: General Dynamics, Entergy Arkansas, Huntington, Westpac, Verizon to price notes

By Cristal Cody

Tupelo, Miss., May 8 – High-grade deal volume is expected to continue at a busy pace on Tuesday with several deals on tap, including General Dynamics Corp.’s seven-tranche offering of notes.

General Dynamics (A2/A+/A) plans to price the notes following the company’s round of fixed income investor calls held Monday, a source said.

BofA Merrill Lynch, RBC Capital Markets LLC and Wells Fargo Securities LLC are the bookrunners.

Also on deck, Entergy Arkansas, Inc. is marketing first mortgage bonds, Huntington Bancshares Inc. is offering senior notes and Westpac Banking Corp. plans a two-tranche deal.

In addition, Verizon Communications Inc. intends to price floating-rate notes.

Otherwise, market news was quiet over the morning with focus turned toward president Donald Trump’s decision scheduled for the afternoon on Iran’s nuclear program and sanctions, sources reported.

Syndicate sources expect about $30 billion to $35 billion of supply this week with the possibility of volume climbing to as high as $50 billion by Friday.

Issuers priced more than $5 billion of high-grade bonds during Monday’s session.

In the investment-grade secondary market, trading volume totaled $14.13 billion at the start of the week, according to Trace.

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