Morning Commentary: Supply in works; Hasbro, Westpac offer notes; Hewlett-Packard holds calls

By Cristal Cody

Tupelo, Miss., Sept. 8 – At least two issuers plan to tap the investment-grade bond market on Friday following steady and strong issuance over the holiday-shortened week.

Hasbro, Inc. (Baa1/BBB/BBB+) is marketing new notes.

Westpac Banking Corp., acting through its New Zealand Branch, intends to price dollar-denominated fixed-rate resetting perpetual subordinated contingent convertible securities.

In other action on Friday, Hewlett-Packard Enterprise Co. (Baa2/BBB/BBB+) is holding fixed income investor calls for a possible deal, a source said. BNP Paribas Securities Corp., Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are the call arrangers.

In the secondary market, trading volume dipped to $14.83 billion on Thursday from $15.70 billion on Wednesday, according to Trace.

Hasbro’s last offering of high-grade bonds priced on May 8, 2014. The company’s $300 million of 3.15% notes due May 15, 2021, which priced at 99.906 to yield 3.165% and a spread of Treasuries plus 100 basis points, were not active in secondary trading early Friday, a source said. The notes last traded on Wednesday at 102.77.

Hasbro’s 5.1% notes due May 15, 2044 traded early Friday at 106.94. The notes were last seen in the secondary market on Tuesday at 108.40. Hasbro sold $300 million of the bonds at 99.817 to yield 5.112%, or Treasuries plus 170 bps.

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