AT&T prices $6 billion; Hospitality Properties taps market; Crown Castle tightens; Xerox flat

By Cristal Cody

Tupelo, Miss., Jan. 29 – Investment-grade companies including AT&T Inc. and Hospitality Properties Trust tapped the market on Friday.

AT&T priced $6 billion of global notes in four tranches during the session.

Hospitality Properties Trust sold $750 million of senior notes in two tranches.

Lloyds Bank plc announced plans to price an offering of one-year floating-rate senior notes.

In the secondary market, Crown Castle International Corp.’s 4.45% senior notes due 2026 priced on Thursday traded 3 basis points tighter earlier in the day Friday.

Xerox Corp.’s 3.5% senior notes due 2020 headed out flat on the news the company will split into two publicly traded companies.

The Markit CDX North American Investment Grade 25 index ended the day 1 bp tighter at a spread of 101 bps.

AT&T prices $6 billion

AT&T priced $6 billion of global notes in four tranches on Friday, according to an informed source and an FWP filing with the Securities and Exchange Commission.

The company sold $1.25 billion of 2.8% notes due Feb. 17, 2021 at 99.823 to yield 2.838%. The bonds priced with a spread of 150 bps over Treasuries.

AT&T placed $1.5 billion of 3.6% notes due Feb. 17, 2023 at 99.925 to yield 3.612%, or a spread of Treasuries plus 195 bps.

In the third tranche, AT&T priced $1.75 billion of 4.125% notes due Feb. 17, 2026 at 99.934 to yield 4.133%. The 10-year notes priced with a spread of Treasuries plus 220 bps.

In the final tranche, the company sold $1.5 billion of 5.65% bonds due Feb. 15, 2047 at 99.766 to yield 5.666% with a spread of Treasuries plus 290 bps.

Barclays, BNP Paribas Securities Corp., J.P. Morgan Securities LLC, Wells Fargo Securities, Inc., BBVA Securities Inc., Santander Investment Securities Inc. and TD Securities (USA) LLC were the lead managers.

Proceeds will be used to repay debt due in 2016 and for general corporate purposes.

AT&T is a Dallas-based telecommunications company.

Hospitality Properties prices

Hospitality Properties Trust sold $750 million of senior notes in a two-tranche offering on Friday, according to an FWP filing with the SEC.

The company sold $400 million 4.25% notes due Feb. 15, 2021 at 98.99 to yield 4.476% with a spread of 312.5 bps over Treasuries.

The company also sold $350 million of 5.25% notes due Feb. 15, 2026 at 97.615 to yield 5.563%. The bonds priced with a spread of Treasuries plus 362.5 bps.

BofA Merrill Lynch, RBC Capital Markets LLC, UBS Securities LLC, BBVA Securities Inc., Mizuho Securities USA Inc., PNC Capital Markets LLC and Regions Securities LLC were the bookrunners.

Proceeds will be used to repay amounts outstanding under the trust’s revolving credit facility and for general corporate purposes.

Hospitality Properties Trust is a Newton, Mass.-based real estate investment trust that owns hotels and travel centers.

Crown Castle firms

Crown Castle International’s 4.45% notes due 2026 firmed 3 bps in secondary trading to 247 bps offered early Friday, according to a market source.

Crown Castle sold $900 million of the 10-year notes (Ba1/BBB-/BBB-) as part of a $1.5 billion total two-tranche offering on Thursday at Treasuries plus 250 bps.

The operator of wireless infrastructures is based in Houston.

Xerox unchanged

Xerox’s 3.5% senior notes due 2020 were unchanged in secondary trading on Friday afternoon at 222 bps bid, according to a market source.

The company sold $400 million of the notes (Baa2/BBB/BBB) on Aug. 17 at a spread of Treasuries plus 212.5 bps.

The maker of office machines is based in Norwalk, Conn.

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