Morning Commentary: Nasdaq, CVS, KeyBank, CIBC, Morgan Stanley, Societe Generale on tap

By Cristal Cody

Tupelo, Miss., Dec. 7 – Several high-grade issuers announced bond offerings on Monday in what is expected to be a front-loaded week for issuance, sources report.

Nasdaq, Inc. is on deck with three tranches of fixed-rate senior notes (Baa2/BBB) that include two-year notes, long 10-year notes and 20-year notes.

Initial price talk on the two-year tranche is at the Treasuries plus 70 basis points area. The long 10-year notes are talked to price at the 110 bps spread area, while the 20-year bond is guided at the 115 bps over Treasuries area.

CVS Health Corp. is offering new and reopened senior notes (Baa2/BBB) in two tranches.

A new five-year note is talked to price in the Treasuries plus 120 bps area.

The company is offering a tap of its 1.3% notes due Aug. 21, 2027 with initial guidance at the 85 bps to 90 bps over Treasuries area.

CVS first sold $1.5 billion of the 1.3% notes on Aug. 12 at a spread of Treasuries plus 85 bps.

Additional financial supply also is in the works on Monday.

Canadian Imperial Bank of Commerce is marketing three-year fixed- and floating-rate senior notes (A2/BBB+/AA-) in two tranches.

The floaters are talked to price at SOFR plus a spread, while the fixed-rate notes are talked to price in the Treasuries plus 50 bps area.

KeyBank NA plans to price two tranches of senior notes (A3/A-/A-) that include floating-rate notes due Jan. 3, 2024 talked to price in the SOFR plus 51 bps area and fixed-to-floating rate notes due Jan. 3, 2024 talked to print in the Treasuries plus 45 bps area.

Morgan Stanley (A2/BBB+/A) is offering six-year global medium-term senior fixed-to-floating rate notes over the session with initial price talk at the Treasuries plus 75 bps area.

Societe Generale SA (A1/A/A) is on deck with dollar-denominated fixed-to-floating rate notes due Dec. 14, 2026.

Initial price talk is at the Treasuries plus 135 bps to 140 bps area.

In other supply expected, Washington Gas Light Co. (A1/A/A) plans to price a $100 million add-on to its 3.65% medium-term notes due Sept. 15, 2049. Initial guidance is in the Treasuries plus 137.5 bps area.

Guardian Life Global Funding is offering $350 million of five-year notes (Aa2/AA+) backed by funding agreements on Monday.

Initial price talk is at the Treasuries plus 65 bps area.

Also, System Energy Resources, Inc. intends to sell $200 million of five-year first mortgage bonds.

About $15 billion to $20 billion of high-grade bonds are expected in the primary market this week, according to syndicate sources.

More than $21 billion of corporate bonds priced last week, boosted by Goldman Sachs Group Inc.’s $2.5 billion two-part offering of senior notes (A3/BBB+/A) on Friday.

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