Morning Commentary: Public Storage, Fannie Mae deals on tap; Waste Connections firms

By Cristal Cody

Tupelo, Miss., April 10 – Public Storage signaled plans on Wednesday to tap the high-grade bond market with an offering of 10-year senior notes.

The company held fixed income investor calls on Tuesday, a source said.

Fannie Mae also announced it intends to price new three-year Benchmark Notes on Thursday.

Otherwise, market activity was light over the morning ahead of the release of the minutes from the Federal Reserve’s March monetary policy meeting.

Dublin aircraft leasing company Avolon Holdings Ltd. is expected to continue a second day of fixed income investor calls on Wednesday for a possible Rule 144A and Regulation S bond offering that may receive investment-grade ratings, according to market sources and news releases from the company and Moody’s Investors Service.

About $5.5 billion of high-grade bonds have priced week to date, not including a $12 billion five-part deal on Tuesday from Saudi Arabian Oil Co. and other emerging markets issuers this week.

Syndicate sources expect about $15 billion to $20 billion of investment-grade deal volume this week.

New issues are trading mostly tighter in the secondary market, a source said.

Waste Connections, Inc.’s $500 million of 3.5% senior notes due May 1, 2029 (Baa2/BBB+/BBB+) that priced on Tuesday firmed about 4 basis points following issuance, according to a market source.

The company sold the notes at a spread of Treasuries plus 103 bps, compared to guidance in the Treasuries plus 105 bps area and initial talk in the 125 bps spread area.

Secondary market volume rose to $22.38 billion on Tuesday from $19.21 billion on Monday, according to Trace data.

© 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.