High-grade primary action quiet on Friday after active week led by Comcast megadeal

By Devika Patel

Knoxville, Tenn., Oct. 5 – The high-grade bond market stayed quiet on Friday, with no new deals announced or pricing.

The week, however, had been busy, bringing a reported 20 new issues to market. Among these was a $27 billion megadeal from Comcast Corp. on Tuesday, accounting for more than half of the week’s bond issuance.

Several smaller deals provided a steady supply of news deals during the week.

On Monday, Toronto-based financial services company Royal Bank of Canada priced $1.8 billion of medium-term senior notes in two tranches.

The bank sold $300 million of five-year floating-rate senior notes at par to yield Libor plus 66 basis points.

Royal Bank of Canada priced $1.5 billion of 3.7% five-year fixed-rate notes at 99.792 to yield 3.746% and a spread of 78 bps over Treasuries.

RBC Capital Markets, LLC, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, BofA Merrill Lynch and Morgan Stanley & Co. LLC were the lead managers.

On Tuesday, Orebro, Sweden-based funding provider Kommuninvest I Sverige AB priced $1 billion of 3% notes due Nov. 16, 2021 at mid-swaps plus 3 basis points.

BofA Merrill Lynch, BNP Paribas Securities Corp., HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC were the bookrunners.

Also on Tuesday, Philadelphia-based media and technology company Comcast, as noted, priced $27 billion of guaranteed senior notes in 12 fixed- and floating-rate tranches.

BofA Merrill Lynch, Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC, Mizuho Securities USA Inc., MUFG and SMBC Nikko Securities America, Inc. were the bookrunners.

On the short end, a $1.75 billion tranche of 3.3% two-year fixed-rate notes priced with a spread of 50 bps over Treasuries, or 99.972 to yield 3.315%.

On the long end, a $2.5 billion tranche of 4.95% notes due Oct. 15, 2058 priced at a 175 bps over Treasuries spread. The bonds priced at 99.912 to yield 4.955%.

In addition, 10 other tranches priced along the curve.

On Wednesday, Enterprise Products Operating LLC sold a $3 billion three-tranche offering of senior notes via bookrunners Citigroup, Credit Suisse Securities (USA) LLC, RBC Capital Markets, LLC, SMBC Nikko, Barclays, Mizuho Securities USA LLC, MUFG, SunTrust Robinson Humphrey, Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC.

The company sold $750 million of 3.5% notes due Feb. 1, 2022 at 99.985 to yield 3.506%, or a spread of Treasuries plus 55 bps.

A $1 billion tranche of 4.15% 10-year notes priced at 99.764 to yield 4.179%. The notes priced with a Treasuries plus 100 bps spread.

Also, $1.25 billion of 4.8% notes due Feb. 1, 2049 priced at a spread of 150 bps over Treasuries, or 99.39 to yield 4.839%.

Also on Wednesday, Torrance, Calif.-based American Honda Finance Corp. priced $1.75 billion of medium-term notes in three tranches via Barclays, BNP Paribas, JPMorgan, BofA Merrill Lynch and MUFG.

The company sold $350 million of three-year floaters at par to yield Libor plus 29 bps.

A $700 million tranche of 3.375% three-year fixed-rate notes priced at a spread of Treasuries plus 45 bps. The notes priced at 99.952 to yield 3.392%.

American Honda also sold $700 million of 3.625% five-year notes at 99.918 to yield 3.643%, or a Treasuries plus 62 bps spread.

Thursday saw Houston-based public utility holding company CenterPoint Energy, Inc. sell $1.5 billion of fixed-rate senior notes in three parts.

The 3.6% notes due Nov. 1, 2021 priced at 99.971 to yield 3.609% in a $500 million tranche at a spread of Treasuries plus 67 bps.

CenterPoint sold $500 million of 3.85% notes due Feb. 1, 2024 at 85 bps over Treasuries. These notes priced at 99.928 to yield 3.866%.

There was $500 million of 4.25% notes due Nov. 1, 2028 at 115 bps over Treasuries. These notes priced at 99.599 to yield 4.299%.

Goldman Sachs, Morgan Stanley, Mizuho Securities, MUFG, RBC Capital Markets, PNC Capital Markets LLC, Regions Securities LLC, TD Securities and USBancorp were the bookrunners.

Also Thursday, European Investment Bank priced a $1 billion add-on to its 3.25% notes due Jan. 29, 2024.

The add-on notes priced at 100.511 to yield 3.144%, or 18.9 bps over Treasuries.

Goldman Sachs was the lead bookrunner for the reopening.

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