Morning Commentary: High-grade primary awakens; SoCal Edison, Dominion Energy, L3 market bonds

By Cristal Cody

Tupelo, Miss., May 30 – After the investment-grade bond market stayed shut on Tuesday with no reported deals following the long holiday weekend, several issuers marketed bonds at the start of Wednesday’s session.

Southern California Edison Co. is offering new and reopened first and refunding mortgage bonds.

Dominion Energy Inc. plans to price 10-year senior notes.

Also, L3 Technologies, Inc. is on deck with a $1.8 billion two-tranche offering of senior notes to fund tender offers for its outstanding bonds due 2019 and 2020.

Syndicate sources expect about $20 billion of volume over the week.

In other activity, some companies are meeting with investors for upcoming deals. Hyundai Capital America (Baa1/A-) is holding a roadshow through Friday in the U.S., Europe and Asia markets for a Rule 144A and Regulation S dollar-denominated note offering, a source said.

BofA Merrill Lynch, Credit Agricole Securities (USA) Inc., HSBC Securities (USA) Inc., Societe Generale CIB and RBC Capital Markets, LLC are the arrangers.

The financial markets were rebounding over the morning after a risk-off trade over Italy’s government crisis on Tuesday sent investment-grade credit spreads wider, while stocks declined and Treasuries rallied, a source said. Stocks were improving and Treasury yields were on the rise at the start of the day.

While supply stayed quiet on Tuesday, secondary trading was active with $16.94 billion of investment-grade bonds traded, according to Trace.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.