Morning Commentary: Black & Decker, Corning, Eastman Chemical, TD Ameritrade on tap

By Cristal Cody

Tupelo, Miss., Oct. 30 – Investment-grade supply is set to continue at a strong pace on Tuesday following more than $4 billion of high-grade issuance on Monday.

Stanley Black & Decker, Inc., Corning Inc., Eastman Chemical Co., TD Ameritrade Holding Corp. and Ryder System, Inc. announced plans early Tuesday to tap the primary market.

Also on Tuesday, Oesterreichische Kontrollbank AG plans to price a benchmark-sized dollar-denominated offering of five-year global notes, according to a market source.

The notes due Nov. 7, 2023 were initially talked to price in the mid-swaps plus 9 basis points area.

BofA Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and HSBC Securities (USA) Inc. are the lead managers.

In addition, Bank Nederlandse Gemeenten NV firmed details for its previously announced Rule 144A and Regulation S offering of three-year sustainable bonds.

BNG Bank (Aaa/AAA/AA+) held fixed income investor calls on Friday for the bonds, according to a market source.

The $500 million no-grow offering of bonds was initially talked to price in the mid-swaps plus 6 bps area. The issue is expected to price on Wednesday.

BNP Paribas Securities Corp., Citigroup Global Markets and TD Securities (USA) LLC are the bookrunners.

In other activity on Tuesday, Whirlpool Corp. will hold fixed income investor calls during the session for a possible deal, a source said. Citigroup, J.P. Morgan Securities LLC, Mizuho Securities USA Inc. and Wells Fargo Securities LLC are the arrangers.

On Monday, investment-grade issuers including Charles Schwab Corp., Consumers Energy Co., Boeing Co., Aflac Inc. and Southwestern Public Service Co. priced notes.

High-grade supply has improved this week along with equities following thin volume in late October, including last week when $6 billion of corporate bonds priced.

About $15 billion to $20 billion of deal volume is expected by market sources over the week.

Coming up on Wednesday, Duke Energy Carolinas LLC (Aa2/A) will hold a roadshow and fixed income investor calls for a benchmark-sized dollar-denominated offering of green first and refunding mortgage bonds, according to a market source.

BofA Merrill Lynch, BNP Paribas, MUFG, Scotia Capital (USA) Inc. and TD Securities are the arrangers.

Market tone also remained positive in secondary trading as the week kicked off with $17.67 billion of investment-grade bonds traded on Monday, according to Trace data.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.