Morning Commentary: Lazard Group offers senior notes; Unibail, Nestle in deal pipeline

By Cristal Cody

Tupelo, Miss., Sept. 12 – Lazard Group LLC signaled plans on Wednesday to price new senior notes.

Primary action has been busy over the last two sessions with more than $17 billion of high-grade bonds priced.

Activity was mostly quiet in the financial markets at the start of the day, a source said.

Several issuers are marketing deals this week, including Unibail-Rodamco-Westfield SE, which held fixed income investor meetings on Monday and investor calls on Tuesday for a benchmark-sized dollar-denominated Rule 144A and Regulation S offering of senior notes.

Nestle Holdings Inc. will start a roadshow for a Rule 144A and Regulation S offering of dollar-denominated senior notes on Thursday.

Syndicate sources expect about $25 billion to as much as $40 billion of new supply this week.

Investment-grade secondary market volume also has been busier this week with $17.19 billion of bonds traded on Tuesday, up from $12.82 billion on Monday, according to Trace data.

Meanwhile, 3M Co.’s 3.625% notes due Sept. 14, 2028 and 4% notes due Sept. 14, 2048 that priced on Tuesday as part of a $2.25 billion five-part deal improved about 2 basis points in the secondary market, a source said.

The $600 million offering of 10-year notes priced at par to yield a spread of 65 bps over Treasuries, while the $650 million tranche of 30-year bonds priced at 98.811 to yield 4.069% and a spread of 95 bps over Treasuries.

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