Morning Commentary: Boston Scientific, CSX, Weyerhaeuser, Florida Power, Sweden on tap

By Cristal Cody

Tupelo, Miss., Feb. 21 – High-grade corporate and sovereign, supranational and agency supply is expected on Thursday in the bond market.

Boston Scientific Corp. is on deck with a five-tranche offering of senior notes.

CSX Corp. is offering new 30-year notes and an add-on to its 4.25% notes due March 15, 2029 that were first issued in November.

Weyerhaeuser Co. moved forward with plans to price notes on Thursday after the company held fixed income investor calls on Tuesday.

Florida Power & Light Co. intends to price 30-year first mortgage bonds.

In SSA supply, the Kingdom of Sweden plans a dollar-denominated offering of notes due Feb. 28, 2022 that was initially talked to price with a spread in the mid-swaps plus 2 basis points area.

Meanwhile, Woodside Finance Ltd. will begin a roadshow and fixed income investor calls on Thursday for a dollar-denominated offering of notes.

In other market activity on Thursday, RMP International Inc. (Baa3/BBB) plans to hold fixed income investor calls, according to a market source.

BofA Merrill Lynch, Santander Investment Securities Inc. and Wells Fargo Securities LLC are the arrangers.

High-grade corporate volume totals more than $18 billion week to date, while SSA issuance totals $7.5 billion.

Syndicate sources projected about $20 billion to $25 billion of corporate supply for the week.

New issues brought to the market this week were mixed in secondary trading, a source said.

CBS Corp.’s $500 million of 4.2% guaranteed senior notes due June 1, 2029 (Baa2/BBB/BBB) that priced on Wednesday at a spread of 167 bps over Treasuries softened about 1 bp after issuance.

Prudential Financial, Inc.’s $1 billion 4.35% medium-term notes due Feb. 25, 2050 were wrapped around issuance in the secondary market. The notes (Baa1/A) priced Wednesday at a spread of 137 bps over Treasuries.

Secondary market volume reached $23.98 billion on Wednesday, down from $24.29 billion on Tuesday, according to Trace data.

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