Morning Commentary: Charter Communications to price two tranches; deal supply remains light

By Cristal Cody

Tupelo, Miss., June 28 – Charter Communications, Inc.’s subsidiaries Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. are on deck Thursday with a two-part offering of senior secured notes due 2024.

The deal includes fixed- and floating-rate tranches.

Nearly $3 billion of investment-grade corporate bonds have priced week to date. Market sources had forecasted about $15 billion to $20 billion of volume with some predicting as little as $5 billion of new issuance for the week.

Other issuers that have been marketing expected bond offerings over the week include Quebec and Toyota Motor Credit Corp.

Quebec plans to sell Canadian dollar-denominated global notes that are registered with the Securities and Exchange Commission.

Toyota Motor Credit has held fixed income investor calls that began in the United States, Europe and Asia on Tuesday for three tranches of SEC-registered senior notes, according to a market source.

Supply is expected to remain light until mid-July when bank and financial issuance likely will ramp up following the end of second-quarter earnings blackout periods, according to market sources.

In the secondary market, trading volume has been heavy over the past two sessions, Trace data shows. On Wednesday, $24.05 billion of high-grade bonds were traded, compared to $21.2 billion on Tuesday and $15.51 billion on Monday.

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