Morning Commentary: ICE, Cummins, GM Financial, Dow, Honeywell, Duke, Brixmor to price

By Cristal Cody

Tupelo, Miss., Aug. 17 – Heavy issuance is forming in the high-grade primary market on Monday with volume expected to be front-loaded this week, sources note.

Market participants anticipate about $30 billion to $40 billion of issuance this week after supply came to more than $47 billion last week.

Heading up the queue on Monday is Intercontinental Exchange Inc., which is offering five tranches of senior notes (A3/BBB+), including one tranche of floating-rate notes and four tranches of fixed-rate notes, after holding fixed income investor calls on Thursday.

Cummins Inc. (A2/A+) is marketing three tranches of senior notes due 2025, 2030 and 2050 following fixed income investor calls also held on Thursday.

General Motors Financial Co., Inc. plans to bring three tranches of new and reopened senior notes (Baa3/BBB/BBB-) to the primary market on Monday. The company is offering new notes due in 2023 and 2027 and an add-on to its 3.6% notes due June 21, 2030. GM Financial sold $750 million of the 3.6% notes on June 17 at 99.709 to yield 3.635%, or a Treasuries plus 290 basis points spread.

Dow Chemical Co. also expects to bring two tranches of registered fixed-rate senior notes (Baa2/BBB-/BBB+) to the primary market on Monday.

Honeywell International Inc. is marketing two tranches of fixed- and floating-rate senior notes due 2022 (A2/A/A) on Monday.

Southern Co. Gas. (Baa1/A-/BBB+) announced a fixed-rate senior note offering early Monday after the company held fixed income investor calls on Thursday and Friday.

Duke Energy Progress Inc. is on deck with an offering of 30-year first mortgage bonds (Aa3/A).

Brixmor Operating Partnership LP plans to tap its 4.05% senior notes due July 1, 2030 (Baa3/BBB-/BBB-) on Monday. Brixmor sold $500 million of the notes on June 8 in an offering upsized from $300 million at 99.776 to yield 4.077%, or a spread of 320 bps over Treasuries.

Santander UK Group Holdings plc intends to tap the primary market with new fixed-rate resetting notes (Baa1/BBB/A) on Monday.

Meanwhile, Florida Power & Light Co. is offering floating-rate notes due Aug. 24, 2070 (A1/A) during the session.

Additional supply is being eyed from other companies that held fixed income investor calls last week, including Oglethorpe Power Corp.

Oglethorpe (Baa1//BBB+) completed two days of investor calls on Friday for a possible deal.

Market tone was positive at the start of the day.

The iShares iBoxx Investment Grade Corporate Bond ETF rose 47 cents to $135.88.

The Pimco Investment Grade Corporate Bond index was up 55 cents at $115.79.

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