Morning Commentary: Investment-grade primary market active; eight bond offerings on tap

By Devika Patel

Knoxville, Tenn., March 6 – The high-grade bond market was busy on Wednesday morning, bringing a reported eight new deals to market.

Round Rock, Texas-based technology company Dell Technologies Inc. subsidiaries Dell International LLC and EMC Corp. emerged with a $4 billion Rule 144A and Regulation S offering of fixed-rate first-lien notes in three parts.

Marriott International Inc., a Bethesda, Md.-based lodging company, intends to sell floating-rate series BB notes and fixed-rate series CC notes.

Denver oil and gas company Cimarex Energy Co. announced an offering of fixed-rate senior notes due 2029, and Jefferson, La.-based energy provider Entergy Louisiana LLC said it will sell collateral trust mortgage bonds.

Luxembourg-based steel producer ArcelorMittal reported that it will issue notes, and Denver-based Public Service Co. of Colorado, an electric and natural gas company, said it will issue first mortgage bonds.

Atlanta airline Delta Air Lines Inc. plans to offer series 2019-1 pass-through certificates and 2019-1 pass through trusts, and Omaha-based Berkshire Hathaway Finance Corp. will conduct an add-on offering of its 4.25% senior notes due Jan. 15, 2049.

Dell units plans $4 billion

Dell subsidiaries Dell International and EMC will conduct a $4 billion offering of fixed-rate first-lien notes in three tranches.

The co-issuers will sell notes due July 15, 2024, Oct. 1, 2026 and Oct. 1, 2029.

The 2024 notes are being talked in the Treasuries plus 187.5 basis points area. The 2026 notes are being talked in the Treasuries plus 250 bps to 262.5 bps area. The 2029 notes are being talked in the Treasuries plus 287.5 bps area.

The notes have a change-of-control put at 101. They feature make-whole calls until one month prior to maturity for the 2024 notes, two months prior to maturity for the 2026 notes and three months prior to maturity for the 2029 notes, and then par calls.

Barclays, BofA Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are the bookrunners.

The notes will be guaranteed by the parent.

Marriott on tap

Marriott plans to price floating-rate series BB notes and fixed-rate series CC notes.

The series CC notes feature a make-whole call and then a par call. The floaters are non-callable.

Wells Fargo Securities LLC, Goldman Sachs, BofA Merrill Lynch, Deutsche Bank Securities Inc. and JPMorgan are the bookrunners.

Cimarex eyes 10-year notes

Cimarex expects to price fixed-rate senior notes due 2029.

The notes feature a make-whole call until three months prior to maturity, and then a par call.

JPMorgan, MUFG and Wells Fargo are the bookrunners.

Entergy Louisiana on tap

Entergy Louisiana plans to sell collateral trust mortgage bonds.

The notes will feature a make-whole call until six months prior to maturity and then are callable at par.

BofA Merrill Lynch, Citigroup, Goldman Sachs, SMBC Nikko and Wells Fargo are the bookrunners.

ArcelorMittal offers notes

ArcelorMittal is marketing notes.

BofA Merrill Lynch, Citigroup, Credit Agricole CIB, Goldman Sachs, JPMorgan, RBC Capital Markets LLC, BNP Paribas Securities Corp., Commerzbank Capital Markets Corp., ING, Santander Investment Securities Inc., SMBC Nikko Securities America Inc., SG Americas Securities LLC and UniCredit Capital Markets are the bookrunners.

Public Service Colorado eyed

Public Service Co. of Colorado expects to price first mortgage bonds, series No. 33, due 2049.

The notes feature a make-whole call until March 15, 2049 and then a par call.

BMO Capital Markets Corp., BNP Paribas, Credit Suisse and Scotia Capital (USA) Inc. are the bookrunners.

Delta to sell pass-throughs

Delta plans to sell series 2019-1 pass-through certificates and 2019-1 pass through trusts.

The certificates may be redeemed at par.

Credit Suisse, Citigroup, Deutsche Bank and Wells Fargo are the lead bookrunners.

BofA Merrill Lynch, Barclays, BNP Paribas, Goldman Sachs, JPMorgan, Morgan Stanley, PNC Capital Markets LLC, SMBC Nikko and Standard Chartered Bank are passive bookrunners.

Berkshire Hathaway eyed

Berkshire Hathaway Finance intends to price an add-on offering of its 4.25% senior notes due Jan. 15, 2049.

The $1.25 billion of notes (Aa3/A/A+) priced at 98.978 to yield 4.311% with a spread of Treasuries plus 140 bps on Jan. 3.

The notes have a make whole call until July 15, 2048 at Treasuries plus 25 bps and are callable at par after that.

The notes will be guaranteed by parent company Berkshire Hathaway Inc.

BofA Merrill Lynch, Goldman Sachs, JPMorgan and Wells Fargo are the bookrunners.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.