Morning Commentary: Issuers flood primary; Nutrition & Biosciences, JPMorgan on tap

By Cristal Cody

Tupelo, Miss., Sept. 9 – A second busy session is expected in the high-grade primary market on Wednesday with numerous issuers offering bonds following more than $21 billion of supply on Tuesday, sources report.

Nutrition & Biosciences, Inc. is marketing six tranches of guaranteed senior notes (Baa3/BBB/BBB) on Wednesday.

The deal includes two-year notes with initial price talk at the Treasuries plus 80 basis points area, five-year notes talked at the 120 bps spread area and seven-year notes guided at the 160 bps over Treasuries area.

A tranche of 10-year notes is talked to print in the 180 bps spread area, while a 20-year tranche is talked at the 210 bps over Treasuries area and a 30-year bond is talked in the 230 bps spread area.

Meanwhile, JPMorgan Chase & Co. is offering $1 billion of four-year green fixed-to-floating rate notes (A3/BBB+/BBB+) over the day. Initial price talk is at the Treasuries plus 65 bps area.

Also in financial supply, Toronto-Dominion Bank plans to price two tranches of senior medium-term notes (Aa3/A) over the day. The deal includes three-year notes talked to print in the Treasuries plus 50 bps to 55 bps area and five-year notes talked at the 70 bps to 75 bps spread area.

Other corporate issuers expected on Tuesday include Duke Energy Corp., Caterpillar Financial Services Corp., Sumitomo Mitsui Financial Group Inc., DNB Bank ASA, O'Reilly Automotive, Inc., Masco Corp., Schlumberger Investment SA, Life Storage LP and Air Canada.

In other supply on Wednesday, the Inter-American Development Bank (Aaa/AAA) launched a $1.5 billion offering of global notes due Sept. 16, 2027 at mid-swaps plus 16 bps, 1 bp tighter than talk.

In addition, the European Investment Bank (Aaa/AAA/AAA) launched $4 billion of global notes due Dec. 15, 2025 over the morning at mid-swaps plus 9 bps.

Initial price talk was in the mid-swaps plus 11 bps area.

About $50 billion to $60 billion of deal volume is expected in the primary market in the week following the Labor Day holiday.

Supply on Tuesday was led by Nestle Holdings Inc.’s $4 billion of fixed-rate senior notes (Aa3/AA-) priced in four tranches.

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