Morning Commentary: SoCal Edison, AIG, American Tower, IBRD on tap; Husky eyes market

By Cristal Cody

Tupelo, Miss., March 12 – Potential high-grade corporate bond and sovereign, supranational and agency supply formed early Tuesday with a number of deals being marketed.

In the corporate pipeline, Alexandria Real Estate Equities, Inc. plans to price a three-part offering of senior notes that includes two new issue tranches and an add-on to the company’s 4% notes due Jan. 15, 2024.

Southern California Edison Co. is offering two tranches of first and refunding mortgage bonds following the company’s fixed income investor calls held on Friday.

American International Group, Inc. plans to price new fixed-rate notes.

American Tower Corp. is on deck with senior notes due May 15, 2024 and March 15, 2029 on Tuesday.

Ameriprise Financial, Inc. is marketing three-year senior notes.

In SSA primary action, the International Bank for Reconstruction and Development, or World Bank, plans to price a benchmark-sized dollar-denominated offering of global notes due March 19, 2024.

The notes were initially talked to price with a spread in the mid-swaps plus 7 basis points area.

Kommunalbanken AS plans to bring a $500 million Rule 144A and Regulation S offering of senior floating-rate notes due April 15, 2021 to the primary market on Tuesday.

The notes were initially talked to price in the Libor plus 4 bps area.

In addition, KommuneKredit is expected to price a dollar-denominated offering of fixed-rate notes due 2022 during the session.

In other action on Tuesday, Husky Energy Inc. (Baa2/BBB) plans to hold fixed income investor calls, a market source said.

BofA Merrill Lynch, Barclays, Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are the arrangers.

The Calgary, Alta.-based energy company was last reported in the dollar-denominated primary market in March 2014.

Nearly $5 billion of high-grade bonds priced on Monday, led by BB&T Corp.’s $2 billion two-part sale of senior and subordinated notes.

Market sources predict about $25 billion of deal volume this week following about $40 billion of supply last week.

In the secondary market, trading volume totaled $19.91 billion on Monday, according to Trace data.

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