Morning Commentary: Companies flood Monday deal pipeline; Kraft, DDR, American Water to price

By Cristal Cody

Tupelo, Miss., Aug. 7 – Investment-grade issuers flooded the deal pipeline early Monday with announcements of bond offerings.

Companies intending to price new bonds include Kraft Heinz Foods Co., American Water Capital Corp., Ares Capital Corp., Duke Energy Corp., Enterprise Products Operating LLC, Aetna Inc., Regions Financial Corp., CenterPoint Energy, Inc., Ecolab Inc., DDR Corp. and CNA Financial Corp.

American Water Capital parent American Water Works Co., Inc. (A3/A) held a two-day roadshow that wrapped up on Friday for its offering.

In other activity expected on Monday, British American Tobacco plc (Baa2/BBB+/BBB) plans to hold roadshows for upcoming dollar-, euro- and sterling-denominated bond offerings.

Market sources predict a busy week with about $35 billion of high-grade supply in the works.

In the secondary market, the 3% notes due June 1, 2026 (Baa3/BBB-) that Kraft Heinz priced in the previous year were down more than 1 point from Friday to the 97.00 area early Monday, a market source said.

Chicago-based Kraft Heinz sold $2 billion of the notes on May 10, 2016.

The overall secondary market saw $14.18 billion of bonds trade on Friday, according to Trace.

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