Morning Commentary: Berkshire Hathaway, PepsiCo, WEC Energy, Leidos to tap primary

By Cristal Cody

Tupelo, Miss., Oct. 5 – Investment-grade-rated companies Berkshire Hathaway Finance Corp., PepsiCo Inc., WEC Energy Group, Inc. and Leidos Inc. are offering new bonds in the primary market on Monday, sources said.

Berkshire Hathaway Finance is marketing two tranches of fixed-rate senior notes (Aa2/AA/A+) that are guaranteed by Berkshire Hathaway Inc.

PepsiCo plans to bring a dual currency offering of registered senior notes (A1/A+) on Monday.

The company intends to price two tranches of dollar-denominated notes and one tranche of euro-denominated fixed-rate notes.

WEC Energy Group also is marketing two tranches of fixed-rate senior notes (Baa1/BBB+/BBB+) on Monday.

Leidos plans to bring a $750 million Rule 144A and Regulation S offering of guaranteed senior notes (Baa3/BBB-) to the primary market.

About $15 billion to $20 billion of high-grade supply is expected this week as volume thins due to earnings-related blackout periods, according to syndicate sources.

More than $18 billion of investment-grade notes priced last week.

Market tone was mixed at the open on Monday with stock indices up more than 1%, while the iShares iBoxx Investment Grade Corporate Bond ETF declined 0.19% to 134.55.

The Pimco Investment Grade Corporate Bond index fell 0.16% to 114.69 in early trading.

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