Morning Commentary: Comcast, Santander, Toyota, First Horizon, Nucor on tap; NWB prices

By Cristal Cody

Tupelo, Miss., May 20 – Several corporate issuers are expected to keep the high-grade primary market busy on Wednesday, sources report.

Comcast Corp. is offering three tranches of senior notes (A3/A-/A-) that include long 10-year notes talked at the Treasuries plus 160 basis points area and new long 30-year notes talked at the 175 bps spread area.

The company also plans to tap its 3.75% notes due April 1, 2040 that were first priced in an $800 million offering on March 24 at 99.456 to yield 3.789% and a 240 bps over Treasuries spread.

Toyota Motor Credit Corp. is on deck with three tranches of notes (A1/AA-) that include new two-year notes talked at the 115 bps spread area and new three-year notes talked at the 130 bps spread area. Toyota plans to price a reopening of its 1.8% notes due Feb. 13, 2025. Initial price talk is in the Treasuries plus 145 bps area.

Banco Santander, SA (Baa1/A-/A-) is offering two tranches of dollar-denominated senior notes following fixed income investor calls on Monday and Tuesday.

The deal includes five-year notes with initial price talk at the Treasuries plus 280 bps area and 10-year notes talked at the 320 bps spread area.

First Horizon National Corp. is offering two tranches of senior notes, as well as an offering of $25-par perpetual non-cumulative preferred stock on Wednesday.

A three-year tranche of notes is talked to print in the Treasuries plus mid-300 bps area, while a five-year note is talked at the high 300 bps spread area.

Nucor Corp. also is offering two tranches of notes (Baa1/A-) on Wednesday. The deal includes five-year notes with initial guidance in the 215 bps over Treasuries area and 10-year notes talked at the 245 bps spread area.

Meanwhile, a 10-year note (Baa2/BBB) offering from Dentsply Sirona Inc. is talked to price at the Treasuries plus mid-300 bps area.

In other supply, Comerica Inc. is offering non-cumulative perpetual fixed-rate reset preferred stock on Wednesday with initial dividend talk at 6% to 6.125%.

Also early Wednesday, Nederlandse Waterschapsbank NV, or NWB Bank, tapped the primary market with $500 million of 1% 10-year green notes priced at mid-swaps plus 40 bps, tighter than initial talk in the mid-swaps plus 43 bps area and guidance of mid-swaps plus 41 bps.

About $28 billion of investment-grade bonds have priced week to date, near the $30 billion to $40 billion of supply expected for the week.

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