AT&T prices $11 billion notes; UBS, Kinder Morgan, Prosus print; high-grade supply picks up

By Cristal Cody

Tupelo, Miss., July 27 – Investment-grade supply revved up on Monday following thin supply in the prior week.

AT&T Inc. priced $11 billion of senior global notes (Baa2/BBB/A-) in five tranches to help fund a tender offer for outstanding securities.

The notes due in 2028, 2032, 2043, 2052 and 2061 all priced tighter than talk.

UBS Group AG tapped the primary market with $2.6 billion of notes (A3/A-/A+) in two tranches.

In other pricing action over the day, Kinder Morgan, Inc. priced a $1.25 billion two-part offering of senior notes (Baa2/BBB/BBB) with proceeds slated to refinance upcoming debt maturities.

Also, Prosus NV priced $1 billion of 30-year senior notes (Baa3/BBB-/) in a Rule 144A and Regulation S offering following fixed income investor calls last week.

In other issuance, Fifth Third Bancorp sold $350 million of $1,000-par perpetual preferred notes on Monday.

About $10 billion to $15 billion of investment-grade supply is expected this week as volume remains light following record issuance in the spring and early summer, syndicate sources said.

An uptick in volume was expected this week after less than $7 billion of high-grade bonds priced last week, sources said.

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