Morning Commentary: Parker-Hannifin, TD Bank, Allstate, Apache, HCA, FHLBank on tap

By Cristal Cody

Tupelo, Miss., June 5 – A number of issuers marketed bonds early Wednesday in the investment-grade primary market.

Parker-Hannifin Corp. announced plans to price three tranches of fixed-rate senior notes after holding fixed income investor calls on Tuesday. The deal includes five-, 10- and 30-year notes.

Toronto-Dominion Bank is offering dollar-denominated five-year senior medium-term notes.

Allstate Corp. is on deck with an offering of 30-year senior notes.

Apache Corp. is marketing fixed-rate notes due 2030 and 2049.

In addition, HCA Healthcare, Inc. subsidiary HCA Inc. intends to price three tranches of split-rated senior secured notes (expected ratings Baa3/BBB-/BB+) on Wednesday, a source said.

Meanwhile, FHLBank System plans to price a $250 million add-on to its 3.25% notes due Nov. 16, 2028 on Wednesday and price a new two-year Global note on Thursday.

Also on Wednesday, Swedish Export Credit Corp. is expected to bring $500 million of global floating-rate notes due Dec. 14, 2020 to the primary market. The registered notes were initially talked to price in the Libor plus 5 basis points area.

More than $9 billion of investment-grade bonds have priced week to date.

Deal volume over the past two sessions has been led by a $2 billion two-part offering of senior secured notes on Tuesday from Vistra Energy Corp. affiliate Vistra Operations Co. LLC.

High-grade issuers priced about $2.5 billion of bonds on Monday and more than $6 billion of notes on Tuesday.

About $10 billion to $15 billion of issuance was forecast by market sources for the week.

In the secondary market, trading volume climbed to $24.44 billion on Tuesday from $17.96 billion on Monday, according to Trace data.

Market tone has improved this week with a risk-on rally continuing early Wednesday from Tuesday, a source said.

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