TCP taps primary; British American Tobacco eyes multi-currency deals; heavy supply forecast

By Cristal Cody

Tupelo, Miss., Aug. 4 – TCP Capital Corp. tapped the high-grade primary market on Friday with an upsized $125 million offering of five-year notes.

Murphy Oil Corp. also priced $550 million of split-rated notes.

The session otherwise was mostly quiet ahead of the late summer weekend.

British American Tobacco plc is expected to kick off a roadshow on Monday for offerings in multiple currencies. Sizing on the company’s dollar offering of notes was talked in the $25 billion area, a source said.

Deal action is expected to ramp up in the week ahead before the last of summer and Labor Day holiday vacations slow issuance, according to a market source.

Syndicate sources are forecasting about $35 billion of supply for the upcoming week.

New bonds were mixed in the secondary market on Friday.

Kinder Morgan, Inc.’s $1.25 billion of senior notes (Baa3/BBB-/BBB-) priced in two parts in the previous session traded mostly wrapped around issuance.

Comcast Corp.’s $2.5 billion two-part offering of notes (A3/A-/A-) sold on Tuesday softened about 5 basis points.

Digital Realty Trust LP’s $1.35 billion of guaranteed fixed-rate bonds (Baa2/BBB/BBB) priced in two parts on Wednesday were mixed.

The Markit CDX North American Investment Grade index softened less than 1 bp to close at a spread of 58 bps.

TCP Capital prices

TCP Capital priced an upsized $125 million of 4.125% five-year notes (/BBB-/) on Friday at 99.701 to yield 4.192% and a spread of Treasuries plus 237.5 bps, according to a press release and a 497AD filing with the Securities and Exchange Commission.

The deal was upsized from an initial $100 million offering.

BofA Merrill Lynch and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be used to repay amounts outstanding under the company’s TCPC funding facility and for other general corporate purposes. As of Thursday, TCP Capital had $175 million outstanding under the funding facility due April 26, 2021 with advances bearing a rate of Libor plus 225 bps or Libor plus 250 bps.

TCP Capital is a Santa Monica, Calif.-based specialty finance company that focuses on credit lending to middle-market companies and small businesses.

Kinder Morgan flat

Kinder Morgan’s 3.15% notes due Jan. 15, 2023 traded on Friday at 140 bps bid, 137 bps offered, according to a market source.

Kinder Morgan sold $1 billion of the notes on Thursday at a spread of Treasuries plus 140 bps.

The pipeline transportation and energy storage company is based in Houston.

Comcast eases

Comcast’s 3.15% notes due Feb. 15, 2028 softened to 95 bps bid, 92 bps offered in secondary trading, according to a market source.

Comcast sold $1.65 billion of the notes on Tuesday at a spread of Treasuries plus 90 bps.

The company’s 4% notes due Aug. 15, 2047 widened to 120 bps bid, 117 bps offered.

The notes priced in an $850 million tranche on Tuesday with a Treasuries plus 115 bps spread.

Comcast is a media and technology company based in Philadelphia.

Digital Realty firms

Digital Realty Trust’s notes were mixed with the 2.75% notes due Feb. 1, 2023 about 1 bp wider and the 3.7% notes due Aug. 15, 2027 about 5 bps tighter, according to a market source on Friday.

The company’s 3.7% notes due 2027 were quoted at 140 bps bid, 137 bps offered in secondary trading.

Digital Realty sold $1 billion of the notes on Wednesday at a Treasuries plus 145 bps spread.

The San Francisco-based company owns, acquires, develops and operates data centers.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.