Verizon prices notes; General Dynamics, Mid-America hold calls; Hershey firms

By Cristal Cody

Tupelo, Miss., May 4 – Heavy investment-grade supply is expected in the week ahead, including possibly more financial paper, according to market sources on Friday.

About $30 billion to $35 billion of new bond issuance is forecast by syndicate sources for the upcoming week.

The potential for deals related to mergers and acquisitions also is strong in May, sources report.

General Dynamics Corp. (A2/A+/) will hold fixed-income investor calls on Monday, a market source said.

About $85 billion of large high-grade bond deals related to mergers and acquisitions “could come over the next couple of months, including in May,” BofA Merrill Lynch analysts said in a research note.

In deal activity on Friday, Verizon Communications Inc. priced $730 million of notes.

Also, Mid-America Apartments, LP (Baa1/BBB+/BBB+) held fixed-income investor calls during the session for a possible deal, a source said.

In other action on Friday, Amcor Ltd. wrapped a two-day round of fixed-income investor calls for an expected 10-year senior note offering.

Looking at secondary trading, Hershey Co.’s $1.2 billion of senior notes (A1/A/) priced in three tranches on Thursday traded 3 basis points to 4 bps tighter.

Mondelez International, Inc.’s $2.5 billion four-tranche offering of notes (Baa1/BBB/) also priced in the previous session were mixed with the long end softer.

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