Investment-grade primary quiet; Dollar Tree notes widen; Comcast notes unchanged

By Cristal Cody

Tupelo, Miss., Nov. 30 – High-grade bond issuers took Friday off after stronger-than-expected supply of more than $30 billion of notes priced over the week.

About $10 billion to $20 billion of volume was forecast by market sources.

Supply in December is expected to be lighter due to holiday closures and year-end cleanup, sources said.

About $15 billion to $20 billion of new issuance is forecast in the week ahead with about $25 billion to $30 billion of overall deal volume predicted for December, according to syndicate sources.

The Markit CDX North American Investment Grade 31 index eased more than 1 basis point on Friday to close at a spread of 76 bps.

In the secondary market, Dollar Tree Inc.’s senior notes (Baa3/BBB-) softened another 1 bp to 8 bps on Friday after the company missed third-quarter revenue expectations and lowered its guidance for fiscal 2018 in the previous session.

The notes are trading more than 60 bps wider than where the issues priced in April.

Comcast Corp.’s senior notes (A3/A-/A-) sold as part of a $27 billion 12-tranche offering in October remained heavily traded this week, a source said. The 4.7% notes due Oct. 15, 2048 were flat on Friday after improving in the previous session.

Dollar Tree weak

Dollar Tree’s 4% notes due May 15, 2025 headed out about 9 bps wider on Friday at 198 bps bid, a market source said.

The notes eased about 10 bps in secondary trading on Wednesday and another 2 bps on Thursday.

Dollar Tree sold $1 billion of the notes on April 5, 2018 at a Treasuries plus 125 bps spread.

The company’s 4.2% notes due May 15, 2028 traded about 1 bp weaker at 205 bps bid.

The issue was 2 bps better in the secondary market on Thursday after widening 6 bps in the prior session.

Dollar Tree sold $1.25 billion of the 10-year notes in the April offering at a spread of 140 bps over Treasuries.

The discount retailer is based in Chesapeake, Va.

Comcast steady

Comcast’s 4.7% notes due Oct. 15, 2048 were unchanged on the day at 153 bps bid, a market source said.

The notes improved about 4 bps on Thursday after softening more than 5 bps in Wednesday’s session.

Comcast sold $4 billion of the 30-year bonds on Oct. 12 at a spread of 150 bps over Treasuries.

The media and technology company is based in Philadelphia.

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