Morning Commentary: Eversource Energy, Athene Holding plan bond deals; Eversource notes mixed

By Cristal Cody

Tupelo, Miss., Jan. 3 – The high-grade bond market remains active at the start of 2018 with two issuers announcing plans on Wednesday to tap the primary market.

Eversource Energy intends to reopen its 2.5% senior notes due March 15, 2021 and price a new offering of 10-year senior notes.

In addition, Athene Holding Ltd. is marketing senior notes.

Investment-grade bond issuance kicked off the new year on Tuesday with deals from companies including Berkshire Hathaway Energy Co., BNP Paribas SA, General Motors Financial Co. Inc. and Santander UK plc.

Supply is expected to be strong over the month, sources report.

In the secondary market, $11.87 billion of bonds were traded on Tuesday, according to Trace data.

Eversource Energy’s 2.5% series I notes due March 15, 2021 have not been active in the secondary market over the past month, a source said. The notes (Baa1/A-/BBB+) were last seen trading on Nov. 30 at 99.92.

The company sold $250 million of the notes on March 7, 2016 at 99.789 to yield 2.545% and a spread of Treasuries plus 112 basis points.

Eversource Energy’s most recent offering of 2.9% series L senior notes due Oct. 1, 2024 that priced in October traded at 99.19 early Wednesday, a source said.

The Boston-based company sold $450 million of the notes on Oct. 2 at 99.774 to yield 2.936%, or a spread of Treasuries plus 77 bps.

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