Morning Commentary: FedEx, Synchrony, Tampa Electric, Citizens on tap; pipeline builds

By Cristal Cody

Tupelo, Miss., July 22 – Monday opened on a strong note with several investment-grade issuers marketing new bond deals.

FedEx Corp. is on deck with new 10-year fixed-rate notes. The company also is offering two tranches of registered euro-denominated fixed-rate notes on Monday.

In other supply, Synchrony Financial plans to price new fixed-rate senior notes.

Tampa Electric Co. expects to tap the primary market with a fixed-rate note offering.

Citizens Financial Group, Inc. is offering fixed-rate senior notes.

In other activity on Monday, Boston Gas Co. will hold fixed income investor calls for a Rule 144A and Regulation S dollar-denominated offering of 10-year senior notes, according to a market source.

Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC and RBC Capital Markets, LLC are the arrangers.

Also, Ontario Teachers’ Finance Trust is gearing up to tap the dollar-denominated market. The trust plans to hold a roadshow in North America, Europe and Asia soon for a Rule 144A and Regulation S dollar-denominated bond offering, according to a market source.

BofA Securities, Inc., Citigroup, HSBC Securities and RBC Capital Markets are the arrangers.

About $15 billion to $20 billion of high-grade bond supply is expected by market sources this week.

Investment-grade issuance missed forecasts last week after issuers priced over $14 billion of bonds, compared to expectations of about $25 billion to $30 billion of volume.

Deal volume in the previous week was concentrated in the financial sector following the release of second-quarter earnings reports from companies including Morgan Stanley, Bank of America Corp. and PNC Financial Services Group, Inc.

Additional financial supply is being eyed by market participants to price this week.

The heavy round of earnings releases also continues this week with companies including Whirlpool Corp., Amazon, Inc., Coca-Cola Co., AT&T Inc., Caterpillar Inc. and McDonald’s Corp. among those scheduled to post profit results.

© 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.