Morning Commentary: Constellation Brands offers four tranches; KeyCorp plans new notes

By Cristal Cody

Tupelo, Miss., Oct. 22 – Constellation Brands, Inc. (Baa3/BBB-) moved forward early Monday with a four-part offering of senior notes following the company’s fixed income investor calls last week.

The company plans to price three tranches of fixed-rate notes and one tranche of floating-rate notes.

Constellation Brands held fixed income investor calls on Thursday via bookrunners BofA Merrill Lynch, Goldman Sachs & Co. LLC and J.P. Morgan Securities, LLC.

Also on Monday, KeyCorp (Baa1/BBB+/A-) announced details for an offering of senior medium-term notes.

The bank holding company previously was in the high-grade bond market in April with $750 million of 4.1% 10-year senior medium-term notes that priced at a spread of Treasuries plus 115 basis points.

KeyBanc Capital Markets, Goldman Sachs, JPMorgan and Morgan Stanley & Co. LLC are the bookrunners.

About $15 billion to $20 billion of investment-grade supply is expected by market sources for the week.

High-grade volume thinned last week with less than $20 billion of overall corporate and SSA issuance.

The secondary market ended Friday with $14.93 billion of high-grade trading volume, according to Trace.

© 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.