Morning Commentary: Intuit offers four tranches; United on deck; Takeda markets deal

By Cristal Cody

Tupelo, Miss., June 25 – At least a couple of investment-grade issuers are expected to tap the primary market on Thursday, while others are marketing deals, sources report.

Intuit Inc. is offering four tranches of fixed-rate notes, including three-year notes talked to price at the Treasuries plus 85 basis points area, five-year notes talked at the 105 bps spread area, seven-year notes initially guided at the 125 bps over Treasuries area and 10-year notes talked at the 140 bps spread area.

United Airlines, Inc. is bringing $3 billion of seven-year guaranteed senior secured notes (Baa3//BBB-) via issuers Mileage Plus Holdings, LLC and Mileage Plus Intellectual Property Assets Ltd.

Takeda Pharmaceutical Co., Ltd. (Baa2/BBB+) is marketing four tranches of registered dollar-denominated senior notes, as well as euro-denominated bonds. The dollar notes include 10-, 20-, 30- and 40-year tranches.

A deal also is expected soon from Equitable Holdings, Inc. subsidiary Equitable Financial Life Insurance Co. (A2/A+) after the company held fixed income investor calls on Wednesday for an inaugural offering of notes.

About $17 billion of investment-grade bonds have priced week to date. About $25 billion of supply was expected for the week.

In the secondary market, new issues priced this week have been mixed, a source said.

Xylem Inc.’s $1 billion of green senior notes (Baa2/BBB/BBB) tightened about 4 bps from where the issues priced in two tranches on Wednesday.

The company sold $500 million of 1.95% notes due Jan. 30, 2028 at a spread of 150 bps over Treasuries, tighter than talk in the Treasuries plus 175 bps area.

Xylem priced $500 million of 2.25% notes due Jan. 30, 2031 at Treasuries plus 165 bps.

The notes were talked to print at the 190 bps over Treasuries area.

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