Strong high-grade supply forecast; Vodafone, ASB plan roadshows; Petrofac markets notes

By Cristal Cody

Tupelo, Miss., May 11 – The high-grade primary market stayed quiet on Friday following a week of strong issuance and ahead of an expected busy deal pipeline.

Syndicate sources forecast about $30 billion to $35 billion of new bond supply in the week ahead.

More than $44 billion of investment-grade bonds priced this week, compared to market forecasts of about $30 billion to $35 billion of supply.

Several issuers are marketing bond deals.

Vodafone Group plc and ASB Bank Ltd. plan to hold deal roadshows.

Vodafone Group (Baa1/BBB+/BBB+) plans to hold a roadshow beginning May 16 for a dollar-denominated note offering, according to a market source. The deal is expected to include multiple tranches.

ASB Bank (A1/AA-/AA-) intends to hold a roadshow May 14 to May 24 in U.S. and Asia markets for a Rule 144A and Regulation S dollar-denominated offering of five-year notes, a source said.

Split-rated issuer Petrofac Ltd. also is expected to tap the primary market following a two-day round of fixed income investor calls this week.

New bonds have traded mostly tighter in the secondary market this week, sources said.

GlaxoSmithKline plc’s $6 billion of notes (A2/A+) priced in five tranches on Thursday tightened about 5 basis points to 8 bps.

The Markit CDX North American Investment Grade 30 index firmed about 1 bp to close Friday at a spread of 59 bps.

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