Morning Commentary: FMC offers three tranches; Omega, SSA supply on deck; PayPal eyed

By Cristal Cody

Tupelo, Miss., Sept. 17 – A handful of high-grade issuers marketed bonds early Tuesday as issuance begins to slow ahead of the Federal Reserve’s policy decision and market focus turns to energy prices in the wake of attacks on Saudi oil facilities.

The Federal Reserve’s Federal Open Market Committee begins its two-day monetary policy meeting on Tuesday.

Heading up investment-grade bond supply at the start of the day, FMC Corp. is marketing three tranches of senior notes.

The chemicals manufacturer held two days of fixed income investor calls for the offering on Thursday and Friday.

Also, Omega Healthcare Investors, Inc. intends to price new fixed-rate senior notes following a round of fixed income investor calls on Monday.

Pricing action also is expected in the sovereign, supranational and agency primary market on Tuesday.

The Council of Europe Development Bank is offering $1 billion of three-year senior global notes that were initially talked to price in the mid-swaps plus 12 basis points area.

Landwirtschaftliche Rentenbank also plans to bring a dollar-denominated offering of two-year senior notes to the primary market on Tuesday. Initial price talk was in the mid-swaps plus 9 bps area.

In other activity on Tuesday, PayPal Holdings Inc. will hold fixed income investor calls for a potential bond offering.

Volume was strong on Monday with more than $6 billion of bonds sold over the session.

Market sources expected supply to be front-loaded for the week due to the Fed meeting and forecast about $25 billion of issuance.

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