Morning Commentary: Heavy primary market action on tap; W.W. Grainger notes unchanged

By Cristal Cody

Tupelo, Miss., May 15 – High-grade syndicate sources expect the week to be heavy with supply, and Monday’s deal pipeline filled quickly.

Early Monday, issuers including Dominion Energy, Inc., Potomac Electric Power Co., International Flavors & Fragrances Inc., Travelers Cos., Inc., W.W. Grainger, Inc. and Gulf Power Co. announced plans to tap the primary market.

In addition, the United Parcel Service, Inc. intends to price a Canadian dollar-denominated offering of senior notes following the company’s $1 billion two-part dollar senior notes deal on Thursday.

About $30 billion to as much as $40 billion of high-grade issuance is forecast for the week.

In the secondary market, W.W. Grainger’s 3.75% notes due May 15, 2046 were unchanged at 94.33, a market source said.

The Lake Forest, Ill.-based industrial supply company sold $400 million of the notes on May 9, 2016 at 99.32 to yield 3.79%.

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