Primary surge continues with Goldman, Comcast, EIB; ConocoPhillips firms; Shell, PepsiCo soft

By Aleesia Forni and Cristal Cody

Virginia Beach, May 19 – Goldman Sachs Group Inc., Volkswagen Group of America Finance LLC, European Investment Bank and Comcast Corp. were among those pricing bonds during another onslaught of issuance for the investment-grade primary market.

Even with the $41 billion of new issuance priced so far this week, most new deals on Tuesday were met with strong investor demand.

Comcast sold all four tranches of its new offering tight of initial price talk and garnered around $10 billion of orders for the deal.

Columbia Pipeline Group Inc. also saw a solid order book that was more than five times oversubscribed for its debut $2.75 billion offering.

However, new deals from South Carolina Electric & Gas Co. and Skandinaviska Enskilda Banken AB were both forced to price their respective new issues wide of initial price thoughts.

Meanwhile, the forward calendar grew on Tuesday, with Kommuninvest i Sverige AB, Japan Bank for International Cooperation and Export Development Canada each setting price talk for planned bond offerings.

New investment-grade bonds were mixed in secondary trading following the strong deal calendar over the day, according to market sources.

ConocoPhillips Co.’s senior notes (A1/A/) traded 1 basis point to 2 bps tighter.

Shell International Finance BV’s 2.125% notes due 2020 widened 5 bps.

PepsiCo Inc.’s 2.75% senior notes due 2025 traded 3 bps softer over the day.

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