Morning Commentary: Apple, Kansas City Power, IADB among issuers in pipeline; Apple improves

By Cristal Cody

Tupelo, Miss., June 13 – Investment-grade rated companies including Apple Inc., American Equity Investment Life Holding Co. and Kansas City Power & Light Co. announced plans on Tuesday to tap the primary market.

Apple intends to price new 10-year notes.

American Equity Investment is marketing $500 million of 10-year senior notes (BBB-) in its offering.

Kansas City Power & Light is offering new senior notes.

In addition on Tuesday, Kommunalbanken AS is expected to price a Rule 144A and Regulation S offering of dollar notes due Sept. 15, 2020.

Also, Inter-American Development Bank plans to price three-year global floating-rate notes during the session.

In the meantime, market participants are looking to Wednesday’s’ Federal Reserve monetary policy press conference. Rates are widely expected to be raised on Wednesday, a source said.

The three-month Libor yield was up 1 basis point to 1.24% at the start of the day, according to a market source.

In secondary market activity, Apple’s most recent issuance of 3.2% notes due May 11, 2027 (Aa1/AA+) that priced on May 4 traded higher at 101.84 early Tuesday. The notes went out on Monday at 101.71.

Apple sold $2 billion of the 10-year notes at par to yield a spread of 85 bps over Treasuries.

Overall secondary market volume on Monday totaled $13.21 billion, Trace reported.

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