Morning Commentary: United Airlines, Comerica, Discover, Nevada Power notes on tap

By Devika Patel

Knoxville, Tenn., Jan. 28 – The week opened with five new deals announced in the primary investment-grade bond market on Monday.

United Airlines Inc., a Chicago-based airline, plans to sell $1,013,070,000 of class AA pass-through certificates, series 2019-1, and class A pass-through certificates, series 2019-1.

Dallas-based Comerica Inc. plans to sell senior notes.

And Riverwoods, Ill.-based Discover Financial Services, a direct banking and payment services company, launched an offering of fixed-rate senior notes.

In addition, National Rural Utilities Cooperative Finance Corp., a Herndon, Va.-based market lender for electric cooperatives, aims to sell collateral trust bonds in two tranches, and Nevada Power Co., an electric utility and subsidiary of Las Vegas-based NV Energy, Inc., intends to offer general and refunding mortgage notes.

United Airlines on tap

United Airlines intends to price $1,013,070,000 of class AA pass-through certificates, series 2019-1, and class A pass-through certificates, series 2019-1.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. LLC are the lead bookrunners.

Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Barclays, BofA Merrill Lynch, BBVA Securities Inc., BNP Paribas Securities Corp., Credit Agricole Securities, Standard Chartered Bank and Wells Fargo Securities LLC are also bookrunners.

Proceeds will be used to purchase equipment notes.

Comerica to price notes

Comerica said it intends to offer senior notes.

The notes are initially non-callable and are then callable at par.

Morgan Stanley and JPMorgan are the bookrunners. Comerica Securities and Sandler O’Neill + Partners, LP are the co-managers.

Proceeds will be used for general corporate purposes.

Discover offers notes

Discover Financial Services said it intends to offer fixed-rate senior notes.

The notes are initially non-callable and are then callable at par.

BofA Merrill Lynch, Barclays and Goldman Sachs are the joint bookrunners.

Proceeds will be used for general corporate purposes.

National Rural eyes market

National Rural Utilities intends to offer collateral trust bonds in two tranches.

The bonds have a make-whole call, followed by a par call.

JPMorgan, KeyBanc Capital Markets Inc., Mizuho Securities USA Inc., PNC Capital Markets LLC SunTrust Robinson Humphrey Inc. are the bookrunners.

Proceeds will be used to repay National Rural Utilities’ $300 million of 2.15% collateral trust bonds due Feb. 1, 2019 and $350 million of 1.65% collateral trust bonds due Feb. 8, 2019, repay short-term debt and for general corporate purposes.

Nevada Power to price

Nevada Power expects to price general and refunding mortgage notes, series CC.

The notes feature a make-whole call and then a par call.

BMO Capital Markets Corp., BNP Paribas, CIBC Capital Markets, Citigroup and SunTrust Robinson Humphrey are the bookrunners.

Proceeds will be used to repay up to $500 million of the company’s 7.125% general and refunding mortgage notes, series V, due March 2019 and for general corporate purposes.

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