Morning Commentary: Merck, Lazard, Lloyds, Japan Finance on tap; Dell, Cimarex eye market

By Cristal Cody

Tupelo, Miss., March 5 – Several high-grade bond issuers are offering new issues on Tuesday in the primary market or eying potential deals.

Merck & Co., Inc. is marketing four tranches of fixed-rate notes following Pfizer Inc.’s $5 billion five-part offering of senior notes priced on Monday.

Lazard Group LLC intends to price new senior notes.

Also, Lloyds Banking Group plc plans an offering of five-year senior notes.

In other issuance expected, Japan Finance Organization for Municipalities intends to price dollar-denominated senior notes due March 12, 2024. Initial price talk was in the mid-swaps plus 51 basis points area.

Meanwhile, Dell Technologies Inc. plans to hold fixed income investor calls on Tuesday for a possible offering of senior notes.

In addition, Cimarex Energy Co. is scheduled to hold fixed income investor calls during the session.

The Denver-based oil and gas company is expected to complete its $1.6 billion cash and stock acquisition of Resolute Energy Corp. by the end of the first quarter.

Nearly $15 billion of investment-grade bonds priced on Monday.

About $25 billion to $30 billion of issuance is forecast by market sources this week.

In the secondary market, bonds were mixed on trading volume of $20.91 billion on Monday, according to a market source and Trace data.

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