Morning Commentary: BB&T, Dominion Energy, Oneok, RELX, American Financial offer bonds

By Cristal Cody

Tupelo, Miss., March 11 – Several high-grade issuers geared up early Monday to tap the primary market.

BB&T Corp. plans to price two tranches of medium-term notes, including senior and subordinated tranches.

Dominion Energy, Inc. intends to bring a two-part offering of reopened and new issue senior notes to the primary market.

The offering includes an add-on to its 4.25% series B notes due June 1, 2028 that were first sold in a $300 million offering on May 30, 2018 at par to yield a spread of Treasuries plus 140 basis points.

Oneok Inc. also is marketing new and reopened guaranteed senior notes during the session.

The company plans to price new 10-year notes and an add-on to its 5.2% notes due July 15, 2048.

Oneok originally priced $450 million of the 30-year notes on June 19, 2018 at 99.546 to yield 5.23%, or a Treasuries plus 220 bps spread.

Meanwhile, RELX Capital Inc. plans to price new 10-year guaranteed notes.

In addition, American Financial Group, Inc. is marketing an offering of 40-year $25-par subordinated debentures on Monday.

The reverse Yankee market also remains active with PepsiCo, Inc. offering euro-denominated senior notes on Monday.

The high-grade primary market is expected to see steady but lighter action this week, according to market sources.

About $25 billion of deal volume is forecast by syndicate sources this week following about $40 billion of supply last week.

The secondary market ended Friday with $17.67 billion of trading volume, according to Trace data.

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