Heavy supply forecast; CVS, Toyota, Brooklyn Union Gas eye deals; Nationwide, Starbucks ease

By Cristal Cody

Tupelo, Miss., March 2 – The primary market stayed quiet on Friday ahead of an expected heavy week of high-grade supply.

CVS Health Corp. held investor calls that will continue on Monday, according to a market source.

CVS (Baa1/BBB+/) is expected to price about $40 billion to $45 billion of bonds to help finance its $69 billion cash and stock acquisition of Aetna Inc.

Also on Friday, Brooklyn Union Gas Co. (A2/A-/BBB+) began a round of fixed-income investor calls for a benchmark dollar-denominated Rule 144A and Regulation S offering of notes, according to a market source.

Beginning Monday, Toyota Industries Corp. (A1/AA-/) will hold a roadshow in the U.S., Europe and Asia markets for a benchmark dollar-denominated bond offering, a source said.

About $50 billion to $60 billion of supply, including CVS’ expected offering, is forecast by syndicate sources for the upcoming week.

New issues priced this week were mixed but mostly wider in secondary trading, a source said.

Nationwide Building Society’s $1.75 billion of senior non-preferred medium-term fixed-to-floating-rate notes priced in two tranches on Thursday eased about 1 basis point.

Starbucks Corp.’s $1.6 billion of senior notes (A3/A-/A-) priced in two tranches at the start of the week traded about 1 bp to more than 10 bps wider.

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