Morning Commentary: Federal Realty, Municipality Finance market bonds; Reckitt, Suntory eyed

By Cristal Cody

Tupelo, Miss., June 20 – Federal Realty Investment Trust is in the high-grade deal pipeline on Tuesday with an offering of notes.

Also on Tuesday, Municipality Finance plc is expected to price a $250 million tap of its existing floating-rate notes due Feb. 7, 2020 that were talked to price in the Libor plus 4 basis points area.

Barclays, RBC Capital Markets, LLC and Scotia Capital (USA) are the lead managers.

The Helsinki, Finland-based credit institution originally sold $500 million of the floaters on Jan. 11 at Libor plus 17 bps.

In other activity on Tuesday, Reckitt Benckiser Group plc (A3/A-) will continue a second day of investor calls for an upcoming dollar-denominated senior notes offering.

BofA Merrill Lynch, Deutsche Bank Securities, HSBC, J.P. Morgan Securities and Citigroup Global Markets are the bookrunners.

Also, Suntory Holdings Ltd. (Baa2/BBB) is expected to hold meetings on Tuesday following investor calls on Monday for a Rule 144A and Regulation S dollar-denominated offering of five-year senior notes.

Citigroup, JPMorgan and Morgan Stanley & Co. LLC are the arrangers.

In secondary market action, Federal Realty Investment Trust’s 3.625% notes due Aug. 1, 2046 (A3/A-) were unchanged early Tuesday at 91.73, according to a market source.

The Rockville, Md.-based real estate investment trust sold $250 million of the bonds on July 7 at 97.756 to yield 3.75% and a spread of 160 bps over Treasuries.

In the overall secondary market, $12.99 billion of investment-grade bonds were traded on Monday, Trace reported.

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