Svenska Handelsbanken, Charles Schwab, Valero, New Brunswick price notes; Avista firms

By Cristal Cody

Tupelo, Miss., May 17 – Investment-grade supply remained light for a second session on Thursday.

Svenska Handelsbanken AB tapped the primary market with a $2.5 billion two-tranche offering of senior notes.

Charles Schwab Corp. sold $1.95 billion of senior notes in three parts.

Valero Energy Partners LP also priced $750 million of 10-year senior notes on Thursday.

In addition, the Province of New Brunswick sold $500 million of 3.625% 10-year global notes (Aa2/A+/) on top of guidance at a spread of mid-swaps plus 50 basis points.

The Markit CDX North American Investment Grade 30 index closed slightly weaker on the day at a spread of 61 bps.

Investment-grade supply slowed on Wednesday to $1.8 billion of reported volume following more than $25 billion of bond issuance in the first two sessions of the week.

In the meantime, several issuers are marketing bonds.

Vodafone Group plc, Eni SpA and ASB Bank Ltd. all are holding roadshows this week.

Petrofac Ltd.’s split-rated $300 million of five-year notes (Ba1/BBB-/BBB-) that were expected to price on Tuesday remains in the deal pipeline, a source said.

The notes were initially talked in the 6% area to yield a spread in the Treasuries plus 300 bps area.

About $30 billion to $35 billion of investment-grade bond volume was expected by syndicate sources for the week.

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