Morning Commentary: Investment-grade deal pipeline active; Sabal, Kommunalbanken market notes

By Cristal Cody

Tupelo, Miss., April 24 – Several high-grade issuers are marketing bond offerings on Tuesday, sources report.

Sabal Trail Transmission LLC will hold fixed income investor calls during the session in advance of bringing an offering of senior notes (Baa1//BBB+) to the primary market.

Barclays, Citigroup Global Markets Inc., Mizuho Securities USA LLC and MUFG are the arrangers of the Rule 144A and Regulation S transaction.

Kommunalbanken is offering $1 billion of long three-year notes in a “no-grow” deal to price on Wednesday. The notes were initially talked to price with a spread in the mid-swaps plus 5 basis points area.

BNP Paribas Securities Corp., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and Scotia Capital (USA) Inc. are the bookrunners.

Also, Bacardi Ltd. (Ba1/BBB-/BBB-) is expected to price dollar-denominated notes in a Rule 144A and Regulation S transaction following the company’s fixed income investor calls on Monday.

BofA Merrill Lynch, Barclays and Citigroup are the arrangers.

In addition, Caisse de depot et placement du Quebec (Aaa/AAA) is holding a week-long roadshow that started on Monday for a potential dollar-denominated bond offering.

BNP Paribas, Goldman Sachs & Co., HSBC and TD Securities (USA) LLC are the arrangers.

About $25 billion to $30 billion of high-grade bonds are expected to price over the week, according to market sources.

Elsewhere, investment-grade secondary trading volume totaled $18.85 billion on Monday, according to Trace.

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