Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers Review > Headlines for 2018 > News item |
Morning Commentary: Total System, Caterpillar, United Airlines, Hope eye deals; Kellogg mixed
By Cristal Cody
Tupelo, Miss., May 9 – A few bond issuers are expected to tap the high-grade primary market on Wednesday.
Total System Services, Inc. is marketing two tranches of senior notes.
Caterpillar Financial Services Corp. is offering floating-rate notes.
Also in corporate supply, United Airlines, Inc. plans to sell class B pass-through certificates.
In other investment-grade supply expected during the session, the City of Hope (A1/A+/AA-) of California plans to price a 30-year taxable bullet bond. Moody’s Investors Service and S&P Global Ratings report the deal size at $300 million.
J.P. Morgan Securities LLC is the bookrunner.
Supply has picked up this week with strong volume both on Monday and Tuesday. More than $20 billion of high-grade bonds have priced week to date, market sources report.
Syndicate sources expect about $30 billion to $35 billion of supply this week.
New issues mostly firm
In the secondary market, new issues were mixed but mostly trading slightly better than issuance, according to market sources.
Kellogg Co.’s $1 billion of senior notes (Baa2/BBB) that priced in two tranches on Monday were flat to about 3 basis points tighter on the short end.
The 4.3% notes due May 15, 2028 traded wrapped around issuance at the 140 bps area.
The Battle Creek, Mich.-based cereal maker sold $600 million of the 10-year notes at a Treasuries plus 140 bps spread.
Consolidated Edison Co. of New York, Inc.’s $1 billion of debentures (A2/A-/A-) that also priced Monday in two parts firmed about 4 bps in secondary trading.
The electric utility’s $700 million of 4.5% debentures, priced with a Treasuries plus 140 bps spread, were quoted in the 136 bps area.
Overall secondary market volume climbed to $17.38 billion on Tuesday from $14.13 billion at the start of the week, according to Trace.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.