Morning Commentary: Apple offers four tranches of notes; JetBlue, Kommuninvest on deck

By Cristal Cody

Tupelo, Miss., Aug. 13 – High-grade supply is expected to feature deals from Apple Inc., Flex Ltd., JetBlue Airways Corp. and Kommuninvest I Sverige AB on Thursday, market sources report.

Apple is offering four tranches of notes (Aa1/AA+), including five-year notes talked to price at the Treasuries plus 45 basis points area, 10-year notes talked at the 75 bps spread area, 20-year notes talked at the 115 bps over Treasuries area and 30-year notes talked at the 135 bps spread area.

Flex is marketing a $400 million two-part reopening of existing senior notes (Baa3/BBB-) that were first issued in May.

Flex, a global electronics manufacturer based in Singapore with U.S. headquarters in San Jose, Calif., plans to tap its 3.75% notes due Feb. 1, 2026 and its 4.875% notes due May 12, 2030.

A $200 million add-on to the 2026 notes is talked at the Treasuries plus 180 bps area.

A $200 million tap of the 2030 notes is talked at the 255 bps over Treasuries area.

Meanwhile, JetBlue Airways is returning to the primary market on Thursday to price $115,584,000 of class B pass-through trust certificates (Baa2/BBB). The certificates have a final distribution date of Nov. 15, 2027.

Initial price guidance is at the 8.5% area.

JetBlue was in the primary market earlier in the month with $635,462,000 of class A pass-through trust certificates (A2/A) and $172.33 million of class B pass-through trust certificates (Baa2/BBB) that priced on Aug. 3 and are expected to settle on Aug. 17.

SSA supply resumes

Also on Thursday, the sovereign, supranational and agency primary market is resuming activity after falling silent in August.

Kommuninvest I Sverige (Aaa/AAA) launched a $1.25 billion offering of notes due Dec. 1, 2022 over the morning at mid-swaps plus 7 bps.

Initial price talk was at the mid-swaps plus 10 bps area with guidance firmed to the mid-swaps plus 8 bps area.

The offering has indications of interest of more than $2.4 billion.

In addition on Thursday, the Federal Home Loan Bank System announced it priced $1 billion of new two-year Global notes.

Deal volume already totals about $40 billion week to date, surpassing market forecasts of about $25 billion to $30 billion of issuance for the week.

Investment-grade issuers priced more than $13 billion of bonds on Monday, over $18 billion of securities on Tuesday and over $8 billion of notes on Wednesday.

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