Morning Commentary: High-grade issuers deluge primary; Gilead, Equinix, AerCap on deck

By Cristal Cody

Tupelo, Miss., Sept. 23 – Heavy supply is in the works for the high-grade primary market over Wednesday’s session, according to market sources.

Gilead Sciences Inc. is offering six tranches of senior notes (A3/A), including three-year floating-rate notes talked at a Libor benchmark and three-year fixed-rate notes talked to price in the Treasuries plus 80 basis points area.

A seven-year tranche is talked at the 110 bps spread area, a 10-year note is talked to price at the 125 bps over Treasuries area, a 20-year issue is talked at the 150 bps spread area and a 30-year bond is guided to print at the 165 bps spread area.

Equinix, Inc. is on deck with three tranches of fixed-rate senior notes (Baa3/BBB-/BBB-), which includes two tranches of green bonds.

A five-year green note is talked to price in the Treasuries plus 95 bps area, while a green note due March 15, 2028 is initially guided to print in the 135 bps spread area. A tranche of notes due Sept. 15, 2051 is talked at the 175 bps over Treasuries area.

AerCap Ireland Capital DAC and AerCap Global Aviation Trust plan to sell two tranches of guaranteed senior notes (Baa3/BBB-/BBB-). The company is marketing notes due Feb. 15, 2024 at the Treasuries plus 250 bps area and seven-year notes at the 465 bps spread area.

Aker BP ASA expects to bring a two-part offering of dollar-denominated split-rated senior notes (Ba1/BBB-/BBB-) to the market on Wednesday.

A tranche of notes due Jan. 15, 2026 is talked to price with a spread in the Treasuries plus 300 bps area.

Aker is offering notes due Jan. 15, 2031 with price talk at the 375 bps over Treasures area.

American Tower Corp. is offering new 10-year senior notes talked at the 140 bps to 145 bps over Treasuries area and a tap of its 3.1% senior notes due June 15, 2050 (Baa3/BBB-/BBB) on Wednesday. The add-on is initially talked to print in the 175 bps to 180 bps spread area.

Meanwhile, Toronto-Dominion Bank is offering $300 million of three-year floating-rate senior medium-term notes (Aa3/A) during the session. Initial price talk is at the SOFR plus 55 bps to 60 bps area.

Also, BNP Paribas SA (Aa3/A+/A+) plans to price new seven-year fixed-to-floating rate notes on Wednesday. The notes are guided to price in the 162.5 bps over Treasuries area.

In other supply, Centene Corp. intends to sell $2.2 billion of 10-year split-rated senior notes (Ba1/BBB-/BB+) in a registered offering.

Oncor Electric Delivery Co. LLC is marketing $450 million of five-year senior secured sustainability bonds (A2/A+/A) with guidance in the 65 bps over Treasuries area.

New York State Electric & Gas Corp. is offering $200 million of 10-year senior notes (A3/A-/A-) talked at the Treasuries plus 150 bps area.

In addition on Wednesday, CenterPoint Energy Resources Corp. is marketing $500 million of 10-year senior notes (Baa2/A-/BBB) talked at the 135 bps over Treasuries area.

Consumers Energy Co. intends to price 50-year floating-rate first mortgage bonds (Aa3/A/A+).

Also, Atmos Energy Corp. expects to sell new senior notes due Jan. 15, 2031 (A2/A) on Wednesday. Price guidance is at the Treasuries plus 105 bps area.

In sovereign, supranational and agency volume, Ontario Teachers’ Finance Trust (Aa1/AA+) plans to price a Rule 144A and Regulation S two-part dollar-denominated offering of senior notes.

The offering includes three-year notes with initial price talk in the mid-swaps plus 28 bps area and 10-year notes talked at the mid-swaps plus 65 bps area.

Swedish Export Credit Corp. is expected to price $1.25 billion of three-year global notes (Aa1/AA+) over the day.

Initial price talk was at the mid-swaps plus 15 bps area with guidance tightened to mid-swaps plus 13 bps.

The primary market stayed quiet on Monday, while volume climbed to more than $15 billion on Tuesday.

About $30 billion to $35 billion of issuance is forecast for the week.

© 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.