Strong investment-grade bond supply forecast in week ahead; Capital One firms; Intel mixed

By Cristal Cody

Tupelo, Miss., May 12 – High-grade issuers took a breather on Friday after pricing more than $38 billion of bonds in the first four sessions of the week.

Investment-grade bond volume for May already totals more than $70 billion and market sources expect heavy supply in the upcoming week. About $30 billion to as much as $40 billion of high-grade issuance is forecast for the week ahead, a syndicate source said.

Coming up on Monday, Kommuninvest I Sverige AB (Aaa/AAA) is expected to hold global investor calls for a dollar-denominated Rule 144A and Regulation S four-year green bond offering. Credit Agricole CIB, HSBC and JPMorgan are arranging the calls.

New bonds priced over the week traded mostly tighter in the secondary market.

Capital One Financial Corp.’s $2.5 billion three-tranche offering of senior notes (Baa1/BBB/A-) sold on Tuesday firmed about 4 basis points to 9 bps.

Intel Corp.’s $6.5 billion of senior notes (A1/A+/A+) priced in seven tranches on Monday were mixed.

The Markit CDX North American Investment Grade index ended modestly softer at a spread of 62 bps.

Capital One tightens

Capital One Financial’s floating-rate notes due May 12, 2020 traded at 72 bps bid, 70 bps offered on Friday, a market source said.

Capital One Financial priced $500 million of the floating-rate notes on Tuesday at Libor plus 76 bps.

The company’s 2.5% notes due May 12, 2020 tightened to 92 bps bid, 89 bps offered.

The company sold $1.4 billion of the three-year fixed-rate notes on Tuesday at a spread of Treasuries plus 100 bps.

Capital One Financial’s reopened 3.75% notes due March 9, 2027 were quoted tighter at 141 bps bid, 139 bps offered in the secondary market.

Capital One Financial priced a $600 million add-on to the 10-year notes in Tuesday’s sale at a Treasuries plus 153 bps spread.

The company originally sold $750 million of the notes on March 6 at 130 bps over Treasuries.

Capital One is a McLean, Va.-based financial services company.

Intel mixed

Intel’s 2.35% notes due May 11, 2022 softened to 46 bps bid, 43 bps offered in secondary trading, a market source said on Friday.

Intel placed the $750 million offering of 2.35% five-year fixed-rate notes on Monday at a Treasuries plus 45 bps spread.

The company’s 3.15% notes due May 11, 2027 firmed to 77 bps bid, 75 bps offered.

The $1 billion tranche of 3.15% 10-year notes priced on Monday with a Treasuries plus 80 bps spread.

Intel’s 4.1% notes due May 11, 2047 tightened to 106 bps bid, 104 bps offered in the secondary market.

The company sold $1 billion of the 30-year notes in the offering on Monday at a spread of 110 bps over Treasuries.

Intel is a semiconductor chip maker based in Santa Clara, Calif.

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