Morning Commentary: Investment-grade issuers prep deals; Progressive, Cimarex Energy stable

By Cristal Cody

Tupelo, Miss., April 3 – At least three bond deals are in the high-grade pipeline for Monday.

Progressive Corp. is marketing $850 million of senior notes.

Cimarex Energy Co. plans to bring 10-year senior notes to the primary market.

Essex Portfolio, LP intends to price guaranteed senior notes.

In the secondary market, Progressive’s 2.45% senior notes due Jan. 15, 2027 were not active in early trading.

Cimarex Energy’s 5.875% notes due May 1, 2022 were last traded on Friday.

Secondary market bond volume ended Friday with $19.5 billion of issues traded, according to Trace.

Progressive steady

Progressive’s 2.45% notes due Jan. 15, 2027 last traded on Thursday at 93.71, according to a market source early Monday.

The company sold $500 million of the notes (A2/A/A) on Aug. 22 at 99.965 to yield 2.454%, or a spread of Treasuries plus 92 basis points.

Progressive is an insurance company based in Mayfield Village, Ohio.

Cimarex Energy stable

Cimarex Energy’s 5.875% notes due May 1, 2022 were not active in early secondary trading on Monday, a source said.

The notes (Baa3/BBB-) were last seen in the secondary market on Friday at 102.95.

Cimarex Energy sold $750 million of the notes on March 22, 2012 at par, or Treasuries plus 361 bps.

The petroleum and natural gas exploration and production company is based in Denver.

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