Morning Commentary: Heavy high-grade volume in pipeline for week; Westpac offers notes

By Cristal Cody

Tupelo, Miss., Nov. 12 – Heavy investment-grade bond supply is expected this week with a looming deal of as much as $30 billion from AbbVie Inc., sources report.

One issuer announced plans early Tuesday to tap the primary market.

Westpac Banking Corp. is marketing dollar-denominated registered fixed-rate notes.

About $45 billion to $50 billion of high-grade bond issuance is forecast to price this week, sources said.

Market sources anticipate AbbVie in the primary market early this week after completing fixed income investor calls on Friday.

The bond markets were closed on Monday for the Veterans Day holiday.

AbbVie intends to price a Rule 144A and Regulation S private offering of senior notes (Baa2/A-) with proceeds slated to fund its acquisition of Allergan plc.

BofA Securities, Inc., Barclays and Morgan Stanley & Co. LLC are the lead managers.

A bond deal also is anticipated early this week from toy and game maker Hasbro, Inc. (Baa1/BBB+/BBB-) as part of funding requirements for a $4 billion all-cash acquisition of Entertainment One Ltd., a source said.

Hasbro held fixed income investor calls on Thursday via BofA Securities, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC.

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