Morning Commentary: High-grade supply eyed; energy issuers on tap; Comcast holds calls

By Cristal Cody

Tupelo, Miss., Oct. 1 – Investment-grade supply is expected to ramp up this week with several issuers marketing bonds early Monday and a potential massive offering to fund a merger in the works.

As Monday and a new month kicked off, issuers including Atmos Energy Corp., Tampa Electric Co. and Wisconsin Electric Power Co. announced details for bond offerings.

Also, Kommuninvest I Sverige AB is marketing a benchmark-sized Rule 144A and Regulation S offering of three-year notes that were initially talked to price in the mid-swaps plus 3 basis points area. The issue is expected to price on Tuesday.

In other activity on Monday, Comcast Corp. (A3/A-/A-) plans to hold fixed income investor calls for a multiple tranche offering projected in the $20 billion to $27 billion range, according to a market source.

BofA Merrill Lynch and Wells Fargo Securities LLC are the arrangers.

Earlier in September, Comcast announced it offered $39 billion to win the bid away from Twenty-First Century Fox, Inc. for Sky plc, a London-based media and telecommunications company.

Syndicate sources predict about $40 billion to $45 billion of supply this week on the heels of less than $12 billion of issuance in the previous week.

Elsewhere, secondary market volume remained strong last week and ended Friday with $18.73 billion of trading volume during the session, compared to $15.5 billion of volume in the same period a week ago, according to Trace.

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