Morning Commentary: UnitedHealth, DuPont, Entergy, Duke, Regions, Japan Bank on tap

By Cristal Cody

Tupelo, Miss., May 13 – UnitedHealth Group Inc. is in Wednesday’s high-grade deal pipeline with a five-tranche offering of senior notes (A3/A+/A-), sources report.

The deal includes long five-year notes with initial talk at the Treasuries plus 135 basis points area, 10-year notes talked at the 170 bps area, 20-year notes talked at the 185 bps area, 20-year notes talked at the 195 bps spread area and 30-year notes talked at the 215 bps area.

E.I. DuPont de Nemours and Co., doing business as Corteva Agriscience, also is bringing two tranches of registered notes (A3/A-/A) to the primary market on Wednesday. A five-year note is talked to print with a spread in the Treasuries plus 170 bps area, while a 10-year tranche is talked at the 200 bps spread area.

Also, energy and financial supply is anticipated.

Entergy Corp., which postponed a two-part offering of senior notes (Baa2/BBB) on March 17, is expected to tap the primary market on Wednesday with two tranches of fixed-rate notes due 2030 and 2050. The 10-year notes are initially guided to price in the Treasuries plus 262.5 bps area, and the 30-year notes are talked at the 287.5 bps spread area.

Duke Energy Corp. is offering 10-year senior notes (Baa3/BBB+/BBB+) on Wednesday that are initially talked at the Treasuries plus 215 bps area.

Meanwhile, Stifel Financial Corp. is marketing registered 10-year senior notes with initial price talk in the 375 bps over Treasuries area.

Brighthouse Financial Inc. also is marketing registered 10-year senior notes (Baa3/BBB+/BBB) during the session. Initial price talk is in the 500 bps over Treasuries area.

Regions Financial Corp. plans to price five-year senior notes (Baa2/BBB+/BBB+) during the session. Initial price guidance is in the Treasuries plus 235 bps area.

Alleghany Corp. also is expected to price 10-year notes over the day. The notes are talked to print in the 312.5 bps to 325 bps spread area.

Meanwhile, Japan Bank for International Cooperation launched a $2 billion registered offering of three-year guaranteed bonds (A1/A+) on Wednesday at mid-swaps plus 43 bps.

Nordic Investment Bank launched an upsized $1.5 billion of three-year global notes at mid-swaps plus 13 bps.

Also, the Republic of Finland (Aa1/AA+/AA+) launched a $1.5 billion offering of 10-year notes on Wednesday at mid-swaps plus 30 bps.

High-grade issuers have priced more than $41 billion of bonds week to date.

About $75 billion to as much as $100 billion of investment-grade supply is expected this week.

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