Morning Commentary: Abbott, Canadian Natural Resources, Arch Capital notes on deck

By Cristal Cody

Tupelo, Miss., June 22 – A few issuers intend to tap the high-grade primary market on Monday with overall volume expected to begin to subside this week from the heavy issuance posted since March, sources said.

Abbott Laboratories is offering $1.3 billion of fixed-rate senior notes (A3/A-) in two tranches. The deal includes $650 million of long seven-year notes talked at the Treasuries plus 100 basis points area and $650 million of 10-year notes talked to price in the 115 bps spread area.

Canadian Natural Resources Ltd. (Baa2/BBB) is marketing two tranches of dollar-denominated notes. Initial price talk on a five-year tranche is in the 205 bps over Treasuries area, while a 10-year tranche is talked at the 255 bps spread area.

Arch Capital Group Ltd. (Baa1/A-/BBB+) is on deck with two tranches of registered senior notes, including 10- and 30-year tranches.

Duke Realty LP is in the day’s pipeline with $300 million of new 10-year senior notes (Baa1/BBB+) that are initially talked to price with a spread in the Treasuries plus 145 bps area.

In other supply expected on Monday, Brookfield Infrastructure Partners, ULC is offering $150 million of $25-par preferred limited partnership units (BBB-) with initial guidance in the 5.375% to 5.5% area.

Meanwhile, the Federal Home Loan Bank System announced it would skip issuing a Global note on Monday with the next Global funding opportunity scheduled for July 15.

Deal volume is expected to slow this week to about $25 billion as summer vacations kick off.

Issuers beat market forecasts last week with nearly $60 billion of total high-grade supply, outpacing the $20 billion to as much as $40 billion expected for the week.

© 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.