Morning Commentary: Waste Management, Fidelity, Nstar, Avangrid, Caterpillar on deck

By Cristal Cody

Tupelo, Miss., May 14 – The high-grade primary market roared to life early Tuesday after issuers stood down on Monday as global trade concerns took hold.

Waste Management, Inc. is on deck with a five-tranche offering of fixed-rate senior notes to help finance an acquisition of Advanced Disposal Services, Inc. If the acquisition is not completed on or before July 14, 2020, four of the tranches will have a special mandatory redemption.

Fidelity National Information Services, Inc. plans to tap the dollar-denominated market with one tranche of fixed-rate senior notes in tandem with an offering of six tranches of euro-denominated senior notes and two tranches of sterling-denominated fixed-rate notes.

The company held a roadshow May 7 through May 10 for the deal, which will be used to help finance its acquisition of Worldpay Inc. The dollar notes will have a special mandatory call if the merger is not completed on or before June 17, 2020.

Meanwhile, two high-grade issuers are offering green bond deals following fixed income investor calls.

Nstar Electric Co., doing business as Eversource Energy, plans to price $400 million of 10-year fixed-rate green debentures.

Avangrid, Inc. is offering 10-year fixed-rate green notes.

Also on Tuesday, Caterpillar Financial Services Corp. is marketing medium-term floating-rate notes.

In the sovereign, supranational and agency primary market, Nordic Investment Bank plans to price a $1 billion offering of five-year global notes on Tuesday. Initial price talk was in the mid-swaps plus 7 basis points area.

About $25 billion to $35 billion of investment-grade issuance is expected this week by market sources.

While issuers stayed to the sidelines on Monday, the secondary market was active with $15.78 billion of bonds traded, according to Trace.

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