New Netflix mostly unchanged; Genworth up on sale; AT&T backlash benefits communications

By Colin Hanner and Paul A. Harris

Chicago, Oct. 24 – It was a tale of new issues in the high yield market during Monday’s session that dominated discussion in the high yield market.

Netflix Inc. plans to add to its long-term debt with a $1 billion offering of 10-year notes at par to yield 4 3/8%. The movie and television streaming service released its third quarter figures on Oct. 17 and posted global revenue of $2.2 billion and the addition of 3.57 million subscribers during the period.

The company currently has $2.37 billion in long-term debt, as of late September.

Genworth Financial Inc., an insurance company, agreed to sell itself to conglomerate China Oceanwide for $2.7 billion on Monday.

Movement in the 7 5/8% notes due 2021 was said to be “very active” during the day and the notes traded as high as 104, according to a market source.

The announcement that AT&T Inc. would acquire Time Warner Inc. for $85.4 billion was under intense scrutiny on Monday. The stocks of both companies plummeted throughout the day.

Other telecommunication companies seemed to respond to the news.

Sprint Corp.’s 7 7/8% due 2023 were active, but “virtually unchanged,” a market source said, adding they were up 1/8 point to 102½; a separate market source said the coupon traded as high as 102 7/8.

T-Mobile Inc.’s 6% notes due 2024 were pretty active, a trader said, citing an uptick of 1/8 point to 107 1/8.

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