Morning Commentary: Equinix, eBay, GE, Brixmor, Phillips 66, Duke, Lloyds, Magna on tap

By Cristal Cody

Tupelo, Miss., June 8 – The high-grade primary market opened Monday with more than a dozen issuers offering bonds, sources report.

Equinix, Inc. is on deck with four tranches of senior notes (Baa3/BBB-/BBB-) that include five-year notes with initial price talk in the Treasuries plus 120 basis points area, seven-year notes talked at the 150 bps spread area, 10-year notes talked at the 165 bps spread area and 30-year notes talked at the 185 bps over Treasuries area.

A few issuers also are planning to reopen bonds priced earlier in the year.

eBay Inc. intends to reopen two tranches of senior notes (Baa1/BBB+/BBB) that it first priced on March 4.

The company is offering a tap of its 1.9% notes due March 11, 2025 with initial talk at the Treasuries plus 100 bps area and an add-on to its 2.7% notes due March 11, 2030 with talk at the 175 bps spread area.

General Electric Co. and GE Capital Global Holdings, LLC subsidiary GE Capital Funding, LLC also plan to reopen notes.

General Electric is marketing a tap of its 4.35% notes due May 1, 2050 (Baa1/BBB+/BBB), first priced on April 13, with initial talk at the 275 bps over Treasuries area.

GE Capital Funding plans to reopen its 4.4% senior notes due May 15, 2030 (Baa1/BBB+/BBB) that were brought to the market on May 6. The add-on is talked to price at the Treasuries plus 295 bps area.

Several energy suppliers also are on deck.

Phillips 66 intends to price new and reopened guaranteed senior notes (A3/BBB+) on Monday. The company is marketing $500 million of new notes due Dec. 15, 2030 at the 170 bps over Treasuries area and a tap of its 3.85% notes due April 9, 2025 at the 115 bps spread area. The 3.85% notes were first priced on April 7.

Duke Energy Florida, LLC is offering $500 million of 10-year first mortgage bonds (A1/A) with initial guidance at the 115 bps over Treasuries area.

Plains All American Pipeline, LP and PAA Finance Corp. expect to bring a $500 million offering of long 10-year senior notes (Ba1/BBB-/BBB-) to the primary market on Monday. Initial price talk is at the Treasuries plus 335 bps area.

In addition, Northern States Power Co. intends to price $700 million of first mortgage bonds due June 1, 2051 (Aa3/A/A) on Monday. The notes are talked to price at the Treasuries plus 130 bps area.

In other supply, Brixmor Operating Partnership LP is offering 10-year senior notes (Baa3/BBB-/BBB-) with initial price talk at the 387.5 bps over Treasuries area.

Lloyds Banking Group plc is marketing three-year senior callable fixed-to-fixed rate notes (A3/BBB+/A+) with talk at the 140 bps over Treasuries area.

Magna International Inc. (A3/A-//DBRS: A) expects to price $500 million of 10-year senior notes on Monday after holding fixed income investor calls on Friday. The notes are initially talked to price with a spread in the Treasuries plus 212.5 bps to 225 bps area.

In addition, Roper Technologies, Inc. is offering 10-year senior notes (Baa2/BBB+) with initial price talk at the 170 bps over Treasuries area.

The high-grade primary market is expected to see steady action this week with $30 billion to $40 billion of volume forecast.

Investment-grade issuers priced more than $46 billion of securities last week.

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