Ontario prices $2.5 billion bonds; primary volume thins; AT&T better; Time Warner eases

By Cristal Cody

Tupelo, Miss., Feb. 1 – The Province of Ontario sold $2.5 billion of five-year dollar bonds on Wednesday in an otherwise mostly quiet session with market attention on the Federal Reserve’s Federal Open Market Committee policy release.

Investment-grade bond issuance was strong in the first two sessions with deals that included a $17 billion seven-part notes offering from Microsoft Corp. on Monday and a $10 billion six-tranche global note sale from AT&T Inc. on Tuesday.

AT&T’s notes (Baa1/BBB+/A-) traded better than issuance in the secondary market during the session.

AT&T’s 4.25% notes due 2027 headed out better at 100.67, up from 100.39 early in the day, according to a market source.

The tranche of 5.45% notes due 2047 were better than pricing at 100.79 in late afternoon trading on Wednesday, better than where the bonds traded at 100.22 over the morning.

AT&T announced plans in October to acquire Time Warner Inc. in an $85.4 billion cash and stock deal that is expected to close before the end of 2017.

Time Warner’s 2.95% notes due 2026 eased 4 basis points over the day.

The Markit CDX North American Investment Grade index ended modestly tighter at a spread of 66 bps.

Investment-grade corporate secondary trading volume was heavy on Tuesday at a record high $28.15 billion, according to Trace and a market source.

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