Morning Commentary: Oceaneering, Hospitality Trust, Western Digital among issuers on deck

By Cristal Cody

Tupelo, Miss., Jan. 30 – Investment-grade issuance in both the corporate and SSA bond markets is expected over Tuesday’s session.

In corporates, offshore oil and gas engineering products and services company Oceaneering International, Inc. intends to price a split-rated offering of 10-year senior notes.

Hospitality Properties Trust, a real estate investment trust focused on hotels and travel centers, is on deck with an offering of senior notes due 2030.

Western Digital Corp. intends to sell a $2.3 billion split-rated offering eight-year bullet notes (Baa3/BB+) after Moody’s Investors Service upgraded the issuer from junk earlier in the morning. The San Jose, Calif.-based data solutions provider plans to use the proceeds, together with cash on hand, to fund a concurrent tender offer.

Also on Tuesday, Kommunalbanken AS (Aaa/AAA) plans to price a Rule 144A and Regulation S offering of senior floating-rate notes due March 12, 2021, according to a market source.

The notes from the Oslo-based government-funded lender were initially talked to price in the Libor plus 5 basis points area.

Citigroup Global Markets, J.P. Morgan Securities and TD Securities (USA) LLC are the lead managers.

About $20 billion of total new issue volume is expected by market sources for the week.

In other activity, Capital One Financial Corp.’s 3.8% senior notes due Jan. 31, 2028 (Baa1/BBB/A-) that priced on Thursday softened in secondary trading early Tuesday.

Capital One Financial’s 3.8% notes due Jan. 31, 2028 weakened to 99.18 in active trading over the morning, a source said. The notes were last seen on Monday at 99.59.

The McLean, Va.-based financial services company sold $1.4 billion of the 10-year notes at 99.802 to yield 3.824%, or a Treasuries plus 120 bps spread.

During Monday’s session, a total of $18.5 billion of investment-grade issues were traded in the secondary market, according to Trace.

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