Morning Commentary: Global Payments, NiSource, Wisconsin utility, AerCap on tap

By Cristal Cody

Tupelo, Miss., Aug. 7 – Investment-grade supply ramped up early Wednesday following Occidental Petroleum Corp.’s $13 billion 10-tranche offering of senior notes priced in the previous session.

Global Payments Inc. plans to price three tranches of fixed-rate senior notes. The company held fixed income investor calls on Monday and Tuesday for the offering ahead of its merger with Total System Services, Inc., a market source said.

In other supply expected, NiSource Inc. is marketing new fixed-rate notes.

Also, Wisconsin Public Service Corp. intends to price new fixed-rate senior notes.

AerCap Ireland Capital DAC and AerCap Global Aviation Trust are offering fixed-rate guaranteed senior notes.

In addition, Lloyds Bank plc plans to price three-year senior notes.

Week to date, high-grade issuers have sold more than $16 billion of bonds.

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

In the secondary market, Occidental Petroleum’s $13 billion of senior notes (Baa3/A) tightened about 7 basis points to 11 bps, a source said.

The company’s $3 billion tranche of 2.9% notes due Aug. 15, 2024 firmed about 7 bps from where the notes priced at a 140 bps over Treasuries spread.

Occidental Petroleum’s $1.5 billion tranche of 3.5% notes due Aug. 15, 2029 tightened about 8 bps in aftermarket trading. The notes priced at a Treasuries plus 185 bps spread.

Secondary market volume rose to $18.22 billion on Tuesday from $15.09 billion of bonds traded on Monday, according to Trace data.

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