Ford prices; volatile market backdrop keeps others at bay; credit spreads widen; Comcast firms

By Aleesia Forni and Cristal Cody

New York, Feb. 8 – High-grade primary activity was measured to open the week on Monday, with issuers keeping to the sidelines in light of a volatile market backdrop as credit spreads widened, oil prices slid below $30.00 per barrel and stocks tumbled.

U.S. crude oil declined 3.9% on Monday to $29.69 per barrel.

In primary happenings, Ford Motor Credit Co. LLC entered the market, pricing $115.02 million of notes on Monday in three parts.

Despite a significant deal calendar in the investment-grade space, sources are calling for only around $10 billion to $15 billion of new issuance to price this week.

This follows last week’s $17 billion total that fell below earlier expectations.

Credit spreads opened the day 4 basis points weaker and softened another basis point over the session. The Markit CDX North American Investment Grade index closed 5 bps wider at a spread of 120 bps.

Investment-grade bonds were mixed in secondary trading.

Ford Motor Credit’s existing 4.134% notes due 2025 softened 1 bp on the day.

Comcast Corp.’s 4.6% notes due 2045 tightened 4 bps.

Charter Communications Inc.’s 6.484% bonds due 2045 eased 1 bp in the secondary market.

Hewlett-Packard Enterprise Co.’s bonds (Baa2/BBB/A-) widened about 15 bps on Monday.

Ford three-parter

Ford Motor Credit priced $115.02 million of senior notes on Monday in three parts, according to a 424B2 filed with the Securities and Exchange Commission.

The company priced $30.56 million of 2.8% notes due Feb. 20, 2019 at par.

The first coupon date is Aug. 20, 2016, and the first coupon amount is $14.70.

A $26.23 million tranche of 3.3% notes was priced at par. The issue matures on Feb. 20, 2021.

The first coupon date is Aug. 20, 2016, and the first coupon amount is $17.33.

Finally, $58.23 million of 4.3% notes due Feb. 20, 2026 priced at par.

The notes feature a first coupon date of Aug. 20, 2016 and a first coupon amount of 22.58.

All three tranches of the sale will be callable at par on Feb. 20, 2017 and semiannually thereafter.

The notes feature a survivor’s option.

Ford Motor Credit is the financing arm of Dearborn, Mich.-based automaker Ford Motor Co.

Ford Credit eases

Ford Motor Credit’s 4.134% notes due 2025 eased 1 bp during the session to 249 bps bid, a market source said.

The company sold $700 million of the notes (Baa3/BBB-/BBB-) on July 30, 2015 at a spread of Treasuries plus 187.5 bps.

Comcast firms

Comcast’s 4.6% notes due 2045 firmed 4 bps to 175 bps bid in secondary trading on Monday, according to a market source.

Comcast sold $1.7 billion of the bonds (A3/A- /A-) on May 19, 2015 at Treasuries plus 150 bps.

The provider of entertainment, information and communication products and services is based in Philadelphia.

Charter softens

Charter Communications’ 6.484% bonds due 2045 were quoted trading 1 bp softer at 371 bps bid, according to a market source.

The company sold $3.5 billion of the bonds (Ba1/BBB-) on July 9, 2015 at Treasuries plus 335 bps.

The provider of cable, internet and phone services is based in Stamford, Conn.

Hewlett-Packard widens

Hewlett-Packard Enterprise’s 4.9% notes due 2025 widened 15 bps in the secondary market on Monday to 400 bps bid, a source said.

The company sold $2.5 billion of the notes on Sept. 30 at Treasuries plus 290 bps.

Hewlett-Packard Enterprise’s 6.35% bonds due 2045 traded about 15 bps softer at 501 bps bid, the source said.

The company sold $1.5 billion of the bonds in the Sept. 30 offering at Treasuries plus 350 bps.

Hewlett-Packard Enterprise is a Palo Alto, Calif.-based provider of technology services.

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