Morning Commentary: Antero Midstream launches note offering; secondary gains continue

By Abigail W. Adams

Portland, Me., Nov. 5 – The domestic high-yield primary market returned to action on Thursday with one drive-by offering on deck.

Antero Midstream Corp. plans to price $400 million long five-year senior notes (B3/B) in a Thursday drive-by with initial guidance in the low 8% area, according to market sources.

The new deal comes from the energy sector, which has been on fire over the past few days as crude oil futures surged on a divided Congress.

While crude oil futures saw a minor pullback on Thursday, futures were up almost 10% on the week, nearly erasing its losses from last week’s sell-off.

Occidental Petroleum Corp.’s 2.9% senior notes due 2024 continued their upward momentum in active trading with the notes up another 1 point to 90½, a source said.

The secondary space, as a whole, continued to gap higher with the market up another ¼ point to ½ point despite the continued uncertainty surrounding the U.S. election.

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