Morning Commentary: Hershey, CCL, Yara, Macquarie, Santander eye primary; BNG prices

By Cristal Cody

Tupelo, Miss., May 27 – High-grade supply thinned on Wednesday but is still expected to remain busy with several corporate deals being marketed and one sovereign, supranational and agency issue already priced over the morning, sources said.

Hershey Co. is offering three tranches of senior notes (A1/A) during the session.

The deal includes five-year notes initially talked to price with a spread in the Treasuries plus 110 basis points area, 10-year notes talked at the Treasuries plus 140 bps area and 30-year notes guided at the 160 bps spread area.

CCL Industries Inc. is marketing $600 million of 10-year senior notes (Baa2/BBB) with initial price talk in the Treasuries plus 265 bps area.

Yara International ASA (Baa2/BBB) announced it is eying the primary market for a potential dollar-denominated Rule 144A and Regulation S offering of notes.

Meanwhile, bank supply continues over the session.

Macquarie Bank Ltd. is offering dollar-denominated 10-year subordinated notes (Baa3/BBB/BBB+) that are talked to print in the 325 bps spread area.

Santander UK Group Holdings plc plans to price five-year senior notes (Baa1/BBB/A) on Wednesday. Initial price talk is in the Treasuries plus 350 bps area.

In the SSA space, BNG Bank NV (Aaa/AAA/AA+) priced a $1.25 billion Rule 144A and Regulation S offering of 1% 10-year senior notes early Wednesday at mid-swaps plus 41 bps, tighter than talk was in the mid-swaps plus 43 bps area.

More than $18 billion of high-grade issues priced on Tuesday with deal volume expected to total in the $25 billion to $30 billion area for the holiday-shortened week.

Volume so far this week has been led by Wells Fargo & Co.’s $6 billion two-part offering of notes that priced on Tuesday.

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