Morning Commentary: Amgen, Mizuho, MUFG, Brookfield, FirstEnergy on tap; Otis eyed

By Cristal Cody

Tupelo, Miss., Feb. 18 – Investment-grade issuers flooded the primary market on Tuesday after the long holiday weekend kept the bond markets closed on Monday, market sources reported.

Amgen Inc. expects to bring a five-part offering of fixed-rate senior notes, including five-, seven-, 10-, 20- and 30-year notes.

The five-year notes are talked to price with a spread in the Treasuries plus 75 basis points to 80 bps area.

Initial price talk on the seven-year tranche is in the 90 bps to 95 bps spread area, while the 10-year notes are talked to print with a spread in the Treasuries plus 105 bps to 110 bps area.

Amgen’s 20-year notes are initially talked to price in the 135 bps to 140 bps over Treasuries area.

The 30-year notes are talked to print at the Treasuries plus 155 bps to 160 bps area.

Mizuho Financial Group, Inc. is offering three tranches of senior fixed-to-floating rate notes and senior floating-rate notes.

The deal includes notes due May 25, 2024 with initial price talk at the Libor plus low 80 bps area, notes due May 25, 2026 talked to price at the Treasuries plus 100 bps to 105 bps area and notes due May 25, 2031 with initial price talk at the 120 bps to 125 bps spread area.

MUFG is marketing senior notes due Feb. 25, 2025 that are talked to price at the Treasuries plus 90 bps to 95 bps area and notes due Feb. 25, 2030 with initial talk at the Treasuries plus 110 bps to 115 bps area.

Commonwealth Edison Co. intends to bring first mortgage bonds due March 1, 2030 and March 1, 2050 to the primary market.

The 10-year bonds are talked to price in the 85 bps spread area, while the 30-year tranche is initially talked to print at the Treasuries plus 115 bps area.

KKR & Co. Inc. subsidiary KKR Group Finance Co. VI LLC plans to sell $500 million of notes due Feb. 25, 2050. The notes are talked to price at the Treasuries plus 165 bps spread area.

Brookfield Finance LLC expects to sell $600 million of guaranteed notes due April 15, 2050 with initial talk at the Treasuries plus 165 bps area.

Republic Services, Inc. is marketing notes due March 1, 2030 with initial price talk in the Treasuries plus 95 bps area and a tranche of notes due March 1, 2050 that is talked to come at the 125 bps spread area.

National Retail Properties, Inc. is on deck with 10- and 30-year fixed-rate notes. Initial price talk on the 10-year notes is at the Treasures plus 110 bps to 115 bps area, while the 30-year tranche is talked to price at the Treasuries plus 130 bps to 135 bps area.

Also, FirstEnergy Corp. intends to sell three tranches of fixed-rate notes.

The deal includes notes due March 1, 2025 with initial price talk at the Treasuries plus 105 bps area, notes due March 1, 2030 initially talked to print at the 135 bps to 140 bps spread area and notes due March 1, 2050 with initial price talk at the Treasuries plus 170 bps to 175 bps spread area.

In addition, Enbridge Inc. is marketing $750 million of guaranteed floating-rate senior notes due 2022.

Meanwhile, Otis Worldwide Corp. is holding fixed income investor calls on Tuesday for a $5 billion-plus offering of notes as part of the company’s spinoff from United Technologies Corp., according to syndicate sources.

The offering follows Carrier Global Corp.’s $9.25 billion six-tranche deal on Thursday as part of its spinoff from United Technologies.

Volume is expected to stay strong this week with about $25 billion to as much as $40 billion of issuance forecast for the holiday-shortened week, according to syndicate sources.

High-grade issuers priced more than $29 billion of bonds last week, in line with the $25 billion to $35 billion of supply anticipated.

© 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.