Morning Commentary: Mid-America, NextEra market high-grade bonds; merger deals eyed

By Cristal Cody

Tupelo, Miss., Aug. 5 – A couple of investment-grade issuers marketed bonds at the start of Monday’s session in what is expected to be a strong week of issuance.

Mid-America Apartments, LP plans to price an add-on to its 3.95% senior notes due March 15, 2029.

Also, NextEra Energy Capital Holdings, Inc. is remarketing $1.5 billion of series I debentures due Sept. 1, 2021.

Market sources are expecting on average about $25 billion to $30 billion of supply with some predicting as much as $40 billion of issuance this week on the potential for two major mergers-and-acquisitions related bond funding deals.

Occidental Petroleum Corp. held fixed income investor calls on Thursday and Friday for up to nine tranches of senior notes to fund its acquisition of Anadarko Petroleum Corp.

A potential $10 billion to $15 billion investment-grade secured bond deal from T-Mobile U.S. Inc. also is expected soon for the company to complete its merger with Sprint Corp.

T-Mobile held a roadshow in the United States and Europe in May.

Also on Friday, Public Service Co. of Colorado held fixed income investor calls for a possible offering of first mortgage bonds.

August deal volume is expected to total in the $75 billion up to $100 billion area, according to market sources.

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