Morning commentary: Burlington Northern plans debentures; AT&T offers long bonds

By Cristal Cody

Tupelo, Miss., July 25 – Two investment-grade issuers announced plans at the start of Wednesday’s session to price new bonds.

Burlington Northern Santa Fe, LLC is marketing debentures in the primary market via bookrunners J.P. Morgan Securities, LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities, Inc., BofA Merrill Lynch, Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC.

AT&T Inc. is offering global notes due Aug. 1, 2067, which are callable after Aug. 1, 2023. BofA Merrill Lynch, Morgan Stanley, Wells Fargo Securities, J.P. Morgan Securities, RBC Capital Markets, LLC and UBS Securities LLC are the bookrunners.

More than $10 billion of high-grade bonds were priced on Monday and Tuesday, about half of what is forecast for the entire week. Market sources expect about $20 billion to $25 billion of weekly supply.

Fifth Third Bank leads corporate issuance week to date in deal size with a $1.55 billion three-part offering of senior notes that priced on Monday.

The largest bond issue priced in the first two sessions was in SSA volume from International Finance Corp., which sold $2 billion of five-year notes tighter than talk on Tuesday.

Elsewhere in the high-grade secondary market, trading volume climbed to $21.43 billion on Tuesday, compared to $15.4 billion on Monday, according to Trace.

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