Morning Commentary: Disney, PayPal, Nutrien, Fiserv, Suncor, EBRD, Cades on deck

By Cristal Cody

Tupelo, Miss., May 11 – New investment-grade corporate and sovereign, supranational and agency bonds are expected to price on Monday from issuers including Walt Disney Co. and PayPal Holdings Inc., sources report.

Walt Disney is marketing six tranches of guaranteed medium-term notes (A2/A-) during the session.

Disney’s offering includes six-year notes with initial price talk in the Treasuries plus 175 basis points area, eight-year notes talked at the 200 bps spread area, long 10-year notes talked at the 225 bps spread area, 20-year notes talked at the Treasuries plus 245 bps area, 30-year notes talked at the 255 bps spread area and 40-year notes talked at the 275 bps over Treasuries area.

PayPal Holdings is on deck with four tranches of notes (BBB+/BBB+) that include three-year notes talked at the 150 bps over Treasuries area, five-year notes talked at the 165 bps spread area, 10-year notes talked at the 200 bps spread area and 30-year notes talked at the 225 bps spread area.

Meanwhile, Nutrien Ltd. expects to price three tranches of fixed-rate senior notes (Baa2/BBB) during the session. Nutrien is marketing three-year notes that are talked to print in the Treasuries plus 205 bps area, 10-year notes talked at the 250 bps spread area and 30-year notes talked at the 280 bps spread area.

Becton, Dickinson and Co. intends to bring a two-part offering of senior notes (Ba1/BBB/BBB-) on Monday. The deal includes 10-year notes with initial price guidance in the Treasuries plus 237.5 bps area and 30-year notes talked at the 262.5 bps spread area.

Fiserv, Inc. also is marketing two tranches of senior notes (Baa2/BBB) during the session. A seven-year tranche is talked at the Treasuries plus 195 bps spread area, and a 10-year note is talked to print at the 220 bps spread area.

Suncor Energy Inc. plans to tap the dollar-denominated primary market with two tranches of senior medium-term notes (Baa1/BBB+), including three-year notes talked at the Treasuries plus 300 bps area and five-year notes talked to print in the 312.5 bps spread area.

A few other issuers are marketing single tranches of notes.

ITC Holdings Corp. (Baa2/BBB+) plans to sell 10-year senior notes with initial talk in the 250 bps over Treasuries area.

Southwestern Public Service Co. expects to price a $350 million green bond offering of 30-year first mortgage bonds (A3/A/A-) that are talked at the 190 bps over Treasuries area.

Quest Diagnostics Inc. plans to bring a $550 million offering of senior notes due June 30, 2031 (Baa2/BBB+/BBB) on Monday. Initial guidance is at the 250 bps over Treasuries area.

Regency Centers LP also is offering 10-year guaranteed senior notes (Baa1/BBB+) with initial price guidance in the Treasuries plus 325 bps area.

Meanwhile in SSA supply, the European Bank for Reconstruction and Development (Aaa/AAA/AAA) plans to price a dollar-denominated offering of five-year bonds that is initially talked to price in the mid-swaps plus 20 bps area.

Also, Caisse d'Amortissement de la Dette Sociale expects to price dollar-denominated notes due May 19, 2023 on Monday with initial guidance in the mid-swaps plus 30 bps area.

About $75 billion of investment-grade deal volume is expected by market participants this week.

Investment-grade issuers priced more than $93 billion of bonds last week.

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