High-grade supply thins; Yara on investor calls; Hyundai plans roadshow; Campbell widens

By Cristal Cody

Tupelo, Miss., May 21 – Primary action came to a near halt in the high-grade market with one reported issuer on Monday.

Unum Group sold $300 million of 6.25% $25-par junior subordinated notes due 2058.

Syndicate sources had expected bond issuance to be front-loaded over the short market week. The markets will close early on Friday.

About $25 billion of volume is expected headed into the Memorial Day holiday weekend, though some predict supply could hit $40 billion if issuers seeking to complete mergers and acquisitions tap the primary market.

The week before the holiday typically has lighter volume with just $22 billion of average issuance since 2011, according to a BofA Merrill Lynch note released Monday.

“However, there are still a few pending M&A deals with expected closing dates in June that have not yet obtained debt financing,” the analysts said.

Several investment-grade issuers are holding roadshows or investor calls for deals this week.

Yara International ASA kicked off a two-day round of fixed-income investor calls on Monday for a dollar-denominated senior note offering.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Societe Generale CIB are the lead managers for the Rule 144A and Regulation S deal.

Also, ASB Bank Ltd.’s roadshow for a Rule 144A and Regulation S dollar-denominated offering of five-year notes continues in the U.S. market through Thursday. ASB Bank began the roadshow May 14 in Asia.

Citigroup Global Markets and J.P. Morgan Securities are the arrangers.

Looking ahead, Hyundai Capital America plans to hold a roadshow for a dollar-denominated deal after the holiday.

The Markit CDX North American Investment Grade 30 index ended the day slightly softer at a spread of 62 basis points.

In other market action, Campbell Soup Co.’s new 10- and 30-year notes moved out more than 45 bps Monday following the sudden retirement on Friday of the company’s chief executive officer and the announcement some brands may be sold off, a source said.

Campbell Soup sold $5.3 billion of notes (Baa2/BBB/) in seven tranches on March 12, including $1 billion of the 4.15% notes due March 15, 2028 at a spread of 130 bps over Treasuries and $700 million of the 4.8% bonds due March 15, 2048 at a Treasuries plus 170 bps spread.

Hyundai prepares for roadshow

Coming up later in May, Hyundai Capital America (Baa1/A-/) plans to hold a roadshow in the United States, Europe and Asia for a Rule 144A and Regulation S dollar-denominated note offering, a market source said.

The company will hold the roadshow May 28 through June 1.

BofA Merrill Lynch, Credit Agricole Securities (USA) Inc., HSBC Securities (USA) Inc., Societe Generale CIB and RBC Capital Markets, LLC are the arrangers.

Hyundai Capital America is an Irvine, Calif.-based auto financing arm of the Hyundai Motor Co.

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