Morning Commentary: HP, Fidelity, American Campus, Westlake, IADB, IBRD offer notes

By Cristal Cody

Tupelo, Miss., June 9 – Corporate and sovereign, supranational and agency supply is expected in the high-grade primary market on Tuesday, sources said.

In corporate pricing action, HP Inc. (Baa2/BBB/BBB+) is expected to bring three tranches of fixed-rate notes to the high-grade primary market on Tuesday.

The company is offering five-year notes talked to price with a spread in the Treasuries plus 212.5 basis points area, seven-year notes talked at the 255 bps spread area and a 10-year tranche initially guided to print at the 275 bps over Treasuries area, a source said.

Meanwhile, Fidelity National Financial, Inc. is offering $500 million of notes due in 2030 (Baa2/BBB/BBB) with initial guidance in the 300 bps over Treasuries area.

Principal Financial Group, Inc. also is marketing $500 million of 10-year senior notes (Baa1/A-) on Tuesday with price talk in the Treasuries plus 150 bps area.

Also on Tuesday, American Campus Communities Operating Partnership LP intends to price $350 million of guaranteed senior notes due in 2031 (Baa2/BBB) following fixed income investor calls. The notes are talked to price with a spread in the 365 bps over Treasuries area.

Westlake Chemical Corp. intends to tap the primary market with a $300 million offering of 10-year senior notes (Baa3/BBB/BBB) on Tuesday. Initial price talk is in the Treasuries plus 325 bps area.

Also on Tuesday, Credit Agricole SA is on deck with new six-year notes (Baa1/A+) with talk at the 185 bps spread area.

Healthpeak Properties, Inc. intends to bring an offering of senior notes due Jan. 15, 2031 (Baa1/BBB+/BBB+) during the session. The notes are talked to price in the 250 bps over Treasuries area.

In other supply, bank holding company Associated Banc-Corp (A3/BBB+/BBB+) is marketing $75 million of perpetual preferred shares talked to print in the 5.75% area.

In the SSA primary market, Inter-American Development Bank (Aaa/AAA) launched a $4 billion offering of five-year notes early Tuesday at mid-swaps plus 17 bps.

Initial price talk was in the mid-swaps plus 21 bps area.

Kommunalbanken AS (Aaa/AAA) launched a $1.5 billion offering of 10-year global notes at mid-swaps plus 38 bps on Tuesday, according to a market source.

The notes were initially talked to price at the mid-swaps plus 40 bps area.

Also, the International Bank for Reconstruction and Development, or World Bank, launched a dollar-denominated offering of four-year floating-rate notes (Aaa/AAA/AAA) on Tuesday at SOFR plus 39 bps, according to a market source.

The notes were initially talked to price in the SOFR plus 40 bps area.

Investment-grade corporate issuers priced more than $12 billion of bonds over Monday’s session. The SSA space was quiet on Monday.

About $30 billion to $40 billion of investment-grade deal volume is expected in the primary market this week.

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