Morning Commentary: Honeywell, Boston Scientific, PPG, Raytheon, Bank of America on tap

By Cristal Cody

Tupelo, Miss., May 14 – High-grade corporate and sovereign, supranational and agency supply is expected to continue on Thursday with numerous issuers marketing bonds, sources report.

Honeywell International Inc. is offering three tranches of senior notes (A2/A/A) that include five-year notes talked to print in the Treasuries plus 140 basis points area, 10-year notes talked at the 165 bps spread area and 30-year notes guided at the 190 bps over Treasuries area.

Boston Scientific Corp. intends to bring two tranches of senior notes (Baa2/BBB-/BBB) to the primary market. A tranche of five-year notes is talked to price with a spread in the 185 bps over Treasuries area, while a 10-year tranche is talked at the 225 bps spread area.

PPG Industries, Inc. is on deck with two tranches of fixed-rate notes (A3/A-/A-) during the session. Initial price talk on a 10-year tranche is at the Treasuries plus 200 bps area, while a 30-year tranche is talked to price at the 230 bps spread area.

Raytheon Technologies Corp., formerly known as United Technologies Corp., is offering two tranches of fixed-rate notes (Baa1/A-) on Thursday. The company is marketing 10-year notes with initial price talk in the Treasuries plus 195 bps area and 30-year notes talked at the 220 bps spread area.

Meanwhile, Bank of America Corp. is offering four-year medium-term fixed-to-floating rate senior notes (A2/A-/A+) with proceeds slated to be used in the response against Covid-19. Initial price talk is in the Treasuries plus 145 bps area.

NatWest Markets plc intends to tap the primary market on Thursday with new three-year senior notes (Baa2/BBB+/A) that are talked to print in the Treasuries plus 240 bps area.

Manulife Financial Corp. is offering seven-year senior notes (A-//DBRS: A) with initial price guidance in the 230 bps over Treasuries area.

Puget Sound Energy, Inc. is marketing $650 million of 10-year senior notes (A2/A-/A) that are talked at the Treasuries plus 375 bps area.

Also, middle-market lender Antares Holdings LP (//BBB-) plans to sell $200 million of five-year notes over the day with initial talk in the 8.5% area.

In SSA primary action, Japan Finance Organization for Municipalities (A1/A+) launched a $1.5 billion Rule 144A and Regulation S offering of five-year senior notes on Thursday at mid-swaps plus 69 bps.

Initial price talk was in the mid-swaps plus 73 bps area with guidance at the 72 bps spread area.

The Province of Ontario (Aa3/AA-) also is offering dollar-denominated seven-year bonds on Thursday with initial talk at the mid-swaps plus 65 bps area.

High-grade issuers have priced more than $50 billion of corporate and SSA bonds week to date.

About $75 billion to as much as $100 billion of investment-grade supply was forecast for the week.

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