Morning Commentary: AutoZone offers two tranches; Owl Rock markets notes

By Cristal Cody

Tupelo, Miss., April 4 – AutoZone, Inc. is marketing high-grade bonds in the primary market on Thursday.

The auto parts supplier is offering two tranches of fixed-rate senior notes.

In other market activity, Owl Rock Capital Corp. will continue a two-day round of fixed income investor calls on Thursday for an offering of senior notes (Baa3/BBB-/BBB-), according to a market source.

The deal is expected to include $300 million of five-year notes, according to ratings releases from Moody’s Investors Service and S&P Global Ratings.

BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, RBC Capital Markets, LLC, SG Americas Securities LLC and SunTrust Robinson Humphrey Inc. are the arrangers.

Week to date, high-grade issuers have priced more than $13 billion of notes.

About $20 billion of deal volume was expected by market sources for the week.

Meanwhile, at the start of Thursday’s session, market participants noted that initial jobless claims for the week ended March 30 fell to a 49-year low. The Labor Department reported initial unemployment claims totaled 202,000, compared to market forecasts of 215,000.

Elsewhere, high-grade secondary trading volume hit $24.38 billion on Wednesday, compared to $22.24 billon on Tuesday and $18.33 billion on Monday, according to Trace data.

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