Morning Commentary: Boeing, Philip Morris, Stanley Black & Decker, Baxter market notes

By Cristal Cody

Tupelo, Miss., Oct. 29 – Investment-grade supply is set to pick up on Thursday with at least four issuers offering bonds, while new issues are trading flat to modestly better in the secondary market, sources report.

Boeing Co. plans to price four tranches of senior notes (Baa2/BBB) over the session. A tranche of notes due Feb. 1, 2024 is talked to price in the Treasuries plus 195 basis points area, while an offering of notes due Feb. 1, 2026 is initially guided at the 255 bps spread area.

Initial price talk on notes due Feb. 1, 2028 is at the Treasuries plus 280 bps area, and a tranche of notes due Feb. 1, 2031 is talked at the 300 bps over Treasuries area.

Philip Morris International Inc. is on deck with two tranches of notes (A2/A/A), including an issue due May 1, 2026 that is talked to print in the Treasuries plus 80 bps area and 10-year notes guided at the 125 bps spread area.

Meanwhile, Stanley Black & Decker, Inc. intends to price new 30-year notes (Baa1/A/A-) on Thursday. Initial price talk is in the Treasuries plus 130 bps area.

In addition, Baxter International Inc. is marketing $650 million of senior notes due April 1, 2031 (Baa1/A-/A-) in a Rule 144A and Regulation S offering.

The notes are talked to price with a spread in the Treasuries plus 115 bps area.

About $10 billion of investment-grade issues have priced week to date with the bulk of issuance seen on Tuesday when more than $8 billion of notes were sold.

About $15 billion of deal volume is expected for the week.

Tractor Supply steady

Market tone was mostly better at the start of the session after equities sold off on Wednesday, stock indices ended the day down more than 3% and credit spreads widened more than 4 bps.

Early Thursday, the Dow Jones industrial average was up 0.39%, the S&P 500 gained 0.96% and the Nasdaq improved 1.37%.

The Pimco Investment Grade Corporate Bond index edged down 0.06% to $114.79 at the start of the day.

The iShares iBoxx Investment Grade Corporate Bond ETF softened 0.07% to $134.69.

New issues are trading flat to modestly better in the secondary market.

Tractor Supply Co.’s upsized $650 million of 1.75% notes due Nov. 1, 2030 (Baa1/BBB) that priced on Tuesday were wrapped around issuance, a source said.

The notes priced at 98.874 to yield 1.874%, or a spread of Treasuries plus 110 bps.

Price talk was in the Treasuries plus 145 bps area.

The deal was upsized from $500 million.

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