Morning Commentary: Comcast, Toyota, Eversource, HSBC, MPLX, ADP keep primary busy

By Cristal Cody

Tupelo, Miss., Aug. 11 – Strong pricing action is expected to continue on Tuesday in the high-grade primary market with numerous companies marketing issues at the start of the session, informed sources report.

Comcast Corp. is marketing three tranches of fixed-rate senior notes (A3/A-/A-). A tranche of notes due Feb. 15, 2031 is talked to price with a spread in the Treasuries plus 105 basis points area. Comcast is offering notes due Aug. 15, 2052 with price talk at the 135 bps over Treasuries area and notes due Aug. 15, 2062 talked to price at the 155 bps spread area.

Toyota Motor Credit Corp. is on deck with three tranches of medium-term notes (A1/A+), including two-year floating-rate notes talked at the Libor plus 30 bps area, three-year fixed-rate notes guided at the Treasuries plus 60 bps area and seven-year fixed-rate notes talked at the 87.5 bps over Treasuries area.

Eversource Energy expects to price three tranches of senior notes (Baa1/BBB+/BBB+) on Tuesday. The deal includes new five- and 10-year tranches and an add-on to the company’s 3.45% senior notes due Jan. 15, 2050 that were first priced on Jan. 7.

Initial price talk on the five-year notes is at the Treasuries plus 90 bps area, while the 10-year notes are talked at the 130 bps spread area. The add-on is initially guided to price at the 155 bps over Treasuries area.

HSBC Holdings plc intends to price two tranches of fixed-to-floating rate senior notes (A2/A-/A+) over the day.

Initial price talk on a six-year tranche is at the Treasuries plus 160 bps area, while an 11-year issue is talked to price at the 200 bps spread area.

MPLX LP is marketing a two-tranche offering of fixed-rate senior notes due March 1, 2026 and Aug. 15, 2030 (Baa3/BBB/BBB-). The 2026 notes are initially talked to print in the 175 bps over Treasuries area. The 10-year notes are talked to price at the 230 bps spread area.

Meanwhile, Automatic Data Processing, Inc. is offering $1 billion of new 10-year fixed-rate senior notes (Aa3/AA) on Tuesday after the company held a virtual roadshow and fixed income investor calls on Monday. Initial price talk is in the 75 bps over Treasuries area.

CNA Financial Corp. plans to price $500 million of fixed-rate senior notes (Baa2/BBB+) in a 10-year tranche guided at the Treasuries plus 180 bps area.

Host Hotels & Resorts, LP is marketing $500 million of 10-year green senior notes (Baa3/BBB-/BBB-) on Tuesday following fixed income investor calls held last week. Initial price talk is at the Treasuries plus 365 bps area.

Lincoln National Corp. is in the day’s deal pipeline with a $500 million offering of 10-year senior notes (Baa1/A-/BBB+) talked at the Treasuries plus 205 bps area.

Gaming and Leisure Properties, Inc. subsidiaries GLP Capital, LP and GLP Financing II, Inc. plan to price a $200 million tap of the issuers’ 4% split-rated senior notes due Jan. 15, 2031 (Ba1/BBB-/BBB-) that were originally priced on June 17. The add-on is talked to print in the Treasuries plus 320 bps to 325 bps area.

Also, Republic Services, Inc. is offering fixed-rate notes due Feb. 15, 2031 (Baa2/BBB+/BBB) during the session. Initial price guidance is at the Treasuries plus 105 bps area.

In other supply, Public Storage plans to price $100 million of $25-par preferred stock (A3/BBB+) on Tuesday. Initial price talk is at 4.375% to 4.5%.

Investment-grade issuers priced more than $13 billion of bonds on Monday, led by Chevron U.S.A. Inc.’s $4 billion seven-tranche sale of senior notes (Aa2/AA) and Visa Inc.’s $3.25 billion three-part offering of senior notes (Aa3/AA-).

About $25 billion to $30 billion of high-grade supply is expected by market participants this week.

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