Morning Commentary: ORIX, Oneok, Enbridge offer bonds; Libor yield hits 1.31%; Enbridge mixed

By Cristal Cody

Tupelo, Miss., July 10 – Several investment-grade issuers announced plans early Monday to price new bonds.

ORIX Corp. is offering dollar-denominated senior notes.

Oneok, Inc. is marketing 10- and 30-year guaranteed notes.

Enbridge Inc. intends to price 60-year fixed-to-floating-rate subordinated notes that may be converted into preference shares upon an automatic conversion event.

About $15 billion to $20 billion of investment-grade supply is expected by market participants for the week.

The three-month Libor yield was up 1 basis point to 1.31% on Monday, a market source said.

In secondary market action, new bonds that Enbridge (Baa2/BBB+/BBB+) priced on June 27 were mixed in trading early Monday.

The 2.2% notes due July 15, 2022 were unchanged from Friday at 99.71, a market source said.

Enbridge sold $700 million of the notes at 99.916 to yield 2.918%, or a spread of 110 bps over Treasuries.

The 3.7% notes due July 15, 2027 improved to 99.52 from 99.40 on Friday.

The Calgary, Alta.-based oil and gas distribution and transportation company sold $700 million of the 10-year notes at 99.974 to yield 3.703%, or Treasuries plus 150 bps.

Looking at overall secondary market volume on Friday, $14.46 billion of investment-grade issues were traded, according to Trace.

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