Morning Commentary: Verizon, CBS, Eli Lilly, Hudson Pacific, Whirlpool, BNG, KfW on tap

By Cristal Cody

Tupelo, Miss., Feb. 20 – Investment-grade bond supply filled to the brim early Wednesday in what is expected to be a busy session for the primary market.

In corporate supply, Verizon Communications Inc. is offering new notes.

CBS Corp. plans to price an offering of guaranteed senior notes.

Eli Lilly and Co. is marketing four tranches of notes.

Hudson Pacific Properties, LP intends to price 10-year guaranteed senior notes.

Whirlpool Corp. is on deck with new senior notes and an add-on to its 4.7% notes due June 1, 2022 that were originally priced in 2012.

In sovereign, supranational and agency supply, the Council of Europe Development Bank plans to price $1 billion of five-year senior global notes on Wednesday.

Initial price talk was in the mid-swaps plus 10 basis points area.

BNG Bank NV intends price a Rule 144A and Regulation S offering of notes due Feb. 27, 2024 on Wednesday.

The notes were initially talked to price with a spread in the mid-swaps plus 18 bps area.

In addition, KfW plans to sell three-year global notes on Wednesday.

The notes due Feb. 15, 2022 were initially talked to price with a spread in the mid-swaps plus 4 bps area.

In other activity, Mitsubishi UFJ Lease and Finance Co. Ltd. started a roadshow and a round of fixed income investor calls on Tuesday in the U.S., Europe and Asia markets for three- and five-year senior notes.

Weyerhaeuser Co. also began holding fixed income investor calls on Tuesday. BofA Merrill Lynch, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are the arrangers.

High-grade issuers priced nearly $10 billion of bonds on Tuesday following the long holiday weekend.

About $20 billion to $25 billion of supply is expected by syndicate sources for the week.

Meanwhile, secondary trading was strong on Tuesday with $24.29 billion of high-grade corporate bonds traded, compared to $22.04 billion in the same period a week ago, according to Trace data.

© 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.