Morning Commentary: Public Service of Colorado, PPG Industries, UDR to tap bond market

By Cristal Cody

Tupelo, Miss., Aug. 6 – Public Service Co. of Colorado is marketing fixed-rate first mortgage bonds in the high-grade primary market on Tuesday after holding fixed income investor calls on Friday.

Also, PPG Industries, Inc. plans to price two tranches of fixed-rate notes.

In addition, UDR, Inc. said it intends to sell medium-term notes.

On Monday, supply was light as trade war concerns with China took hold, according to market sources.

The Markit CDX North American Investment Grade 32 index closed the day 5 basis points wider at a spread of 62 bps.

NextEra Energy Capital Holdings Inc. priced a $1.5 billion remarketing of two-year debentures, while Mid-America Apartments, LP brought a $250 million add-on to its 3.95% senior notes due March 15, 2029.

Also on Monday, real estate investment trust EPR Properties (Baa2/BBB-/BBB-) held fixed income investor calls for a possible deal, a market source said.

BofA Securities, Inc., Barclays, Citigroup Global Markets Inc. and RBC Capital Markets, LLC were the arrangers.

About $25 billion to $30 billion of issuance is expected by syndicate sources for the week.

Much of the supply is anticipated from possible bond deals from Occidental Petroleum Corp., which held fixed income investor calls on Thursday and Friday, and T-Mobile U.S. Inc., which held a roadshow in the United States and Europe in May.

Meanwhile, the secondary market saw $15.09 billion of investment-grade issues trade on Monday, according to Trace data.

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