Morning Commentary: Loews, United Airlines, Capital One, AIG, JPMorgan, SEK offer notes

By Cristal Cody

Tupelo, Miss., May 6 – Investment-grade issuers continued to pour into the primary market on Wednesday with numerous companies offering bonds, sources report.

Loews Corp. plans to price registered senior notes (A3/A/A) during the session after holding fixed income investor calls on Tuesday.

United Airlines, Inc. plans to sell $2.25 billion of guaranteed three- and five-year senior secured notes (Ba2/BB-/BB+)) in a Rule 144A and Regulation S offering.

Capital One Financial Corp. is offering registered senior notes (Baa1/BBB/A-) in three- and seven-year tranches.

American International Group, Inc. is marketing three tranches of registered senior notes (Baa1/BBB+/BBB+) that includes five-, 10- and 30-year notes.

Realty Income Corp. also is offering new registered fixed-rate notes (A3/BBB+/BBB+) on Wednesday.

Public Service Electric and Gas Co. is on deck with registered 30-year secured medium-term notes (Aa3/AA/A+) that are expected to price during the session.

Qualcomm Inc. also announced plans to price two tranches of registered fixed-rate senior notes (A2/A-) on Wednesday.

Magellan Midstream Partners, LP is offering $500 million of registered fixed-rate senior notes (Baa1/BBB+).

JPMorgan Chase & Co. intends to price registered fixed-to-floating rate senior notes (A2/A-/AA-).

Office Properties Income Trust is marketing registered fixed-rate senior notes (Baa3/BBB-) on Wednesday.

Consumers Energy Co. plans to bring registered 50-year floating-rate first mortgage bonds (Aa3/A/A+) to the market.

In addition, Swedish Export Credit Corp. is expected to price a dollar-denominated offering of five-year senior notes (Aa1/AA+) on Wednesday.

Initial price talk is in the mid-swaps plus 35 basis points area.

Also, a Rule 144A and Regulation S offering of dollar-denominated three-year covered bonds (Aaa//AAA) from HSBC Bank Canada is expected to possibly hit the primary market on Wednesday.

More than $37 billion of high-grade paper was priced over the first two sessions of the week.

About $60 billion to $75 billion of volume is expected this week.

New issues have traded mostly tighter in the secondary market, a source said.

Ryder System, Inc.’s upsized $400 million of 3.35% medium-term notes due Sept. 1, 2025 (Baa1/BBB+/A-) that priced on Tuesday firmed about 6 bps.

The notes priced at 99.931 and a spread of 300 bps over Treasuries.

Initial talk was in the 330 bps over Treasuries area with price guidance tightened to the 305 bps area, plus or minus 5 bps.

The offering was upsized from $300 million.

Overall high-grade corporate secondary market volume totaled $28.36 billion on Tuesday, up from $22.31 billion on Monday, according to Trace data.

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