Morning Commentary: High-grade issuers flood primary; Ford, GM, Kroger, Duke on tap

By Cristal Cody

Tupelo, Miss., Jan. 6 – The investment-grade bond market woke to a running start on Monday with more than 10 issuers marketing deals at the start of the first full week of 2020.

Ford Motor Credit Co. LLC intends to price three tranches of notes.

General Motors Financial Co. is offering senior notes due 2025.

John Deere Capital Corp. is offering two tranches of senior medium-term notes on Monday.

The deal includes notes due Jan. 9, 2025 that are initially talked to price in the low 60 basis points area over Treasuries and notes due Jan. 9, 2030 with initial talk in the low 80 bps area over Treasuries.

BNP Paribas SA plans to price fixed-to-floating rate notes due Jan. 13, 2031. The notes are initially talked to price with a spread in the Treasuries plus 140 bps to 145 bps area.

Santander UK plc expects to print new fixed-rate notes.

Sumitomo Mitsui Financial Group, Inc. expects to price dollar-denominated fixed-rate senior notes.

BPCE SA is marketing an offering of notes due 2025 that are initially talked to print in the Treasuries plus 110 bps area.

Meanwhile, Kroger Co. is offering senior notes due Jan. 15, 2050 during the session. Initial price talk is in the Treasuries plus 190 bps to 195 bps area.

Home Depot, Inc. intends to price an add-on to its 2.95% notes due June 15, 2029 and a new issue of notes due 2049.

Also on Monday, Southern California Gas Co. intends to sell first mortgage bonds due 2030.

Southern California Edison Co. plans to price a tap of its 2.85% first and refunding mortgage bonds due Aug. 1, 2029 and a new issue of bonds due 2050.

Duke Energy Carolinas, LLC plans to sell new first and refunding mortgage bonds due 2030 and a tap of its 3.2% bonds due Aug. 15, 2049.

In addition, Enterprise Products Operating LLC is on deck with three tranches of fixed-rate guaranteed senior notes.

Volume was expected to shift into high gear in January after only about $20 billion of bonds priced in December, according to market sources.

January supply is forecast to total in the $115 billion to $125 billion area, syndicate sources said.

© 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.