Morning Commentary: High-grade primary packed; Chevron, Visa, S&P, others offer notes

By Cristal Cody

Tupelo, Miss., Aug. 10 – Heavy investment-grade supply is in the works over Monday’s session with about a dozen issuers marketing bonds, sources report.

Chevron Corp., which was last in the primary market on May 7 with an $8 billion seven-part offering of notes, expects to price seven tranches of guaranteed senior notes (Aa2/AA) over the day via Chevron USA Inc.

The deal includes two tranches of floating-rate notes due in 2022 and 2023. The fixed-rate tranches include two-year notes with initial price talk at the Treasuries plus 35 basis points area, three-year notes talked at the Treasuries plus 45 bps area, five-year notes talked at the 65 bps spread area, seven-year notes talked at the 85 bps spread area and 30-year notes talked at the 130 bps over Treasuries area.

Visa Inc. intends to price three tranches of senior notes (Aa3/AA-) on Monday. Initial price talk on a seven-year notes is at the Treasuries plus 60 bps area, while a tranche of notes due Feb. 15, 2031 is guided at the 75 bps to 80 bps over Treasuries area. An offering of 30-year notes is talked to print at the 100 bps to 105 bps over Treasuries area.

S&P Global Inc. is offering two tranches of guaranteed senior notes (A3//A-) that include 10-year notes talked at the 100 bps over Treasuries area and 40-year notes talked at the 140 bps spread area.

Ecolab Inc. is on deck with a two-part offering of senior notes (A3/A-/A-) on Monday. Initial price guidance on a 10-year issue is at the Treasuries plus 105 bps area and at the 125 bps spread area for a 40-year note.

Essex Portfolio, LP also intends to price two tranches of guaranteed senior notes (Baa1/BBB+/BBB+) over the day. The company is offering notes due in 2031 with price talk at the 145 bps over Treasuries area and 30-year notes talked at the 170 bps spread area.

Meanwhile, several companies are expected to bring one tranche of notes to the primary market over the session.

Motorola Solutions, Inc. plans to sell 10-year senior notes (Baa3/BBB-/BBB-) that are talked to print at the 215 bps over Treasuries area.

Great-West Lifeco Inc. (A+/A) is marketing $500 million of five-year senior notes (A+/A) with initial price talk at the Treasuries plus 90 bps area.

Bunge Ltd. Finance Corp. also is offering $500 million of five-year guaranteed senior notes (Baa3/BBB/BBB-) on Monday. The notes are talked to print at the 185 bps over Treasuries area.

Air Lease Corp. is on deck with long five-year medium-term notes (BBB/BBB//Kroll: A-) that are initially guided to price with a spread in the 300 bps to 312.5 bps over Treasuries area.

Bancorp, Inc. plans to price five-year senior notes with $98.3 million of estimated proceeds slated for general corporate purposes.

Concho Resources Inc. intends to price $400 million of senior notes due Feb. 15, 2031 (Baa3/BBB-/BBB) on Monday. Initial price talk is in the 215 bps over Treasuries area.

In addition, Kimco Realty Corp. is marketing $300 million of notes due March 1, 2028 (Baa1/BBB+) that are talked to print with a spread in the Treasuries plus 180 bps area.

About $25 billion to $30 billion of high-grade supply is expected this week following about $36 billion of issuance last week.

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