Morning Commentary: Heavy supply on tap; Hershey, S&P Global, TransCanada, EBRD among issuers

By Cristal Cody

Tupelo, Miss., May 3 – The high-grade deal pipeline filled quickly Thursday morning with a strong pick-up in volume expected over the session.

A couple of sweets issuers are on deck. Hershey Co. is marketing three tranches of notes, while Mondelez International, Inc. plans to price a four-tranche bond offering.

Also, S&P Global Inc. is offering senior notes, GATX Corp. is marketing 10-year senior notes and Republic Services, Inc. plans to price new notes.

Both TransCanada Pipelines Ltd. and Oshkosh Corp. firmed deal details following fixed income investor calls the companies held Tuesday.

TransCanada Pipelines plans to price three tranches of senior notes.

Oshkosh is offering senior notes to redeem the company’s $250 million outstanding 5.375% senior notes due March 1, 2022 and for general corporate purposes.

Also on Thursday, the European Bank for Reconstruction and Development plans to sell $300 million of four-year global floating-rate notes. The notes were initially talked to price in the Libor plus 1 basis point area.

In other market activity during the session, Amcor Ltd. kicks off a two-day round of fixed income investor calls. The company is expected to price 10-year senior notes in a Rule 144A and Regulation S deal following the investor calls.

Investment-grade deal volume was light on Tuesday with just over $4 billion of issuance and on Wednesday with $1.1 billion of reported supply following more than $8 billion of bonds priced on Monday.

Syndicate sources forecasted about $25 billion to $30 billion of volume for the week.

In the investment-grade secondary market, $19.34 billion of bonds were traded on Wednesday, compared to $17.47 billion on Tuesday and $20.92 billion on Monday, according to Trace.

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