Morning Commentary: Black & Decker, Huntsman, Rockwell, Travelers, CDP to tap primary

By Cristal Cody

Tupelo, Miss., Feb. 27 – Investment-grade bond issuers geared up for an active session on Wednesday with several deals in the works.

Stanley Black & Decker, Inc. plans to bring new notes to the primary market.

Split-rated issuer Huntsman International LLC is offering senior notes.

Rockwell Automation, Inc. intends to price a two-tranche offering of senior notes.

Travelers Cos., Inc. is on deck with $500 million of 30-year senior notes.

Selective Insurance Group, Inc. is marketing 30-year senior notes.

Also on Wednesday, CDP Financial Inc. plans to price dollar-denominated three-year senior notes in a Rule 144A and Regulation S deal.

Initial price talk on the notes due March 7, 2022 was in the mid-swaps plus 20 basis points area.

More than $16 billion of high-grade corporate bonds have priced week to date. Deal volume has been led so far by Mitsubishi UFJ Financial Group, Inc.’s $5.5 billion five-part offering of senior notes that priced Tuesday.

About $25 billion to $30 billion of supply is expected by syndicate sources this week.

New issues were mixed in the secondary market after spreads softened on Tuesday, a source said.

Telefonica Emisiones SAU’s $1.25 billion of 5.52% guaranteed senior notes due March 1, 2049 (Baa3/BBB/BBB) that priced in the previous session at a spread of Treasuries plus 252 bps softened about 1 bp.

Price guidance was in the Treasuries plus 255 bps area, while the notes were initially talked to print in the 265 bps spread area.

The notes are guaranteed by Madrid-based telecommunications group Telefonica SA.

Secondary market volume rose to $24.32 billion on Tuesday from $23.73 billion on Monday, according to Trace data.

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