Morning Commentary: Flex to tap 4.875% notes, Kommuninvest plans to sell $1.25 billion

By Devika Patel

Knoxville, Tenn., Oct. 31 – Primary activity in the investment-grade bond market waned late in the week, with only two new deals announced on Thursday morning.

San Jose, Calif.-based Flex Ltd., a real estate investment trust, said it will offer additional 4.875% senior notes due June 15, 2029, and Orebro, Sweden-based Kommuninvest I Sverige AB, a company that offers funding to municipalities of Sweden, plans a $1.25 billion sale of fixed-rate benchmark notes due 2022.

Flex offering eyed

Flex plans to price an add-on to its 4.875% senior notes due June 15, 2029.

The company originally issued $450 million of the notes at 99.607 to yield 4.925% with a spread of Treasuries plus 270 basis points in a sale that priced on May 30 and settled on June 6.

The notes have a make-whole call at Treasuries plus 45 bps until March 15, 2029 and then a par call.

The bookrunners are J.P. Morgan Securities LLC, Citigroup Global Markets Inc., U.S. Bancorp Investments Inc. and SMBC Nikko Securities America Inc.

Proceeds will be used for general corporate purposes, including repaying, redeeming or repurchasing debt.

Kommuninvest on tap

Kommuninvest I Sverige plans to issue $1.25 billion of fixed-rate benchmark notes due 2022 in a Rule 144A and Regulation S offering.

The notes will be priced at 99.857 and guaranteed by the County Councils and Municipalities of Sweden.

Toronto-Dominion Bank, HSBC Bank plc, Morgan Stanley & Co. International plc and Scotiabank Europe plc are the bookrunners.

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