Morning Commentary: Swedish Export sets deal size; Steel Dynamics eyes primary market

By Cristal Cody

Tupelo, Miss., Dec. 5 – Swedish Export Credit Corp. is offering $500 million of four-year global notes in a previously reported dollar-denominated offering expected on Thursday.

Initial price talk on the notes (Aa1/AA+) is in the mid-swaps plus 18 basis points area.

In other high-grade market action expected on Thursday, Steel Dynamics Inc. (Baa3/BBB-/BBB) is holding fixed income investor calls for a possible deal, a source said.

BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Morgan Staley & Co. LLC are the arrangers.

Steel Dynamics is a Fort Wayne, Ind.-based steel producer and metal recycler.

High-grade issuers have priced about $10 billion of bonds week to date. About $15 billion to $20 billion of volume was anticipated by market sources for the week.

Deal volume has been led by Skandinaviska Enskilda Banken AB’s $1.75 billion two-part offering of senior notes (Aa2/A+/AA-) on Wednesday.

New issues firm

In the secondary market, Skandinaviska Enskilda Banken’s notes traded about 3 bps to 6 bps tighter, a source said.

The Stockholm-based Swedish financial group’s 2.2% notes due Dec. 12, 2022 tightened 3 bps.

Skandinaviska Enskilda Banken sold $1.25 billion of the three-year fixed-rate notes at a spread of 62 bps over Treasuries.

Charter Communications, Inc.’s $1.3 billion add-on to its 4.8% split-rated guaranteed senior secured notes due March 1, 2050 (Ba1/BBB-/BBB-) that priced on Monday remains better than issuance.

The notes traded at 103.24 at the start of Thursday’s session and were quoted in the previous session going out at a 236 bps bid spread, according to market sources.

Subsidiaries Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. priced the notes at 101.964 to yield 4.677% and a spread of Treasuries plus 240 bps.

Initial talk was in the Treasuries plus 255 bps area.

The Stamford, Conn.-based broadband communications company originally sold the notes in a $1.5 billion offering on Oct. 15 at 99.436 to yield 4.836% and a Treasuries plus 260 bps spread. The total outstanding is $2.8 billion.

Overall secondary market volume ended Wednesday’s session with $21.68 billion of bonds traded, up from $19.98 billion on Tuesday and $20.74 billion on Monday, according to Trace data.

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