Morning Commentary: Union Pacific, Energy Transfer, Danske Bank plan multiple-tranche deals

By Cristal Cody

Tupelo, Miss., June 5 – Several investment-grade issuers are set to price new bonds on Tuesday following about $10 billion of volume in the previous session.

Union Pacific Corp. plans a seven-tranche offering of notes.

Energy Transfer Partners, LP is marketing four tranches of senior notes.

AerCap Ireland Capital DAC intends to bring guaranteed senior notes to the primary market.

Also, Japan International Cooperation Agency is expected to sell $500 million of 10-year bonds on Tuesday.

The notes were initially talked to price with a spread in the mid-swaps plus 45 basis points area.

In addition, Danske Bank A/S intends to price three tranches of dollar-denominated senior notes (Baa1/A-/A) in a new offering, a market source said.

The deal includes long five-year fixed- and floating-rate notes and 10-year fixed-rate notes.

Syndicate sources forecast about $25 billion of deal volume for the week.

On Monday, supply was led by Kraft Heinz Foods Co., John Deere Capital Corp., Hyundai Capital America and Goldman Sachs Bank USA.

In the secondary market in the previous session, $16.04 billion of high-grade bonds traded, according to Trace data.

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