Athene Global Funding prices; Basin Electric Power offers notes; Comcast firms; AT&T softens

By Cristal Cody

Tupelo, Miss., April 17 – Athene Global Funding tapped the high-grade bond market on Monday with a two-part $800 million offering of notes in mostly quiet action following the long U.S. holiday weekend and with financial markets closed in Europe for Easter Monday.

In other activity, Basin Electric Power Cooperative marketed $500 million of 30-year first mortgage bonds in a Rule 144A and Regulation S offering.

Also, Australian financial services company Suncorp-Metway Ltd. (A1/A+/A+) was expected to kick off a roadshow in the United States and Asia this week for a dollar-denominated Rule 144A and Regulation S notes offering. Citigroup Global Markets Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC and UBS Securities LLC are arranging the roadshow.

The Markit CDX North American Investment Grade index softened less than half of a basis point to close at a spread of 68 bps.

In the secondary market, Comcast Corp.’s 3.3% senior notes due 2027 tightened about 3 bps during the session.

Apple Inc.’s 3.35% senior notes due 2027 traded about 1 bp better over the day.

AT&T Inc.’s 4.25% notes due 2027 softened about 4 bps on Monday.

Verizon Communications Inc.’s 4.125% notes due 2027 firmed about 1 bp in the secondary market.

Athene Global Funding prices

Athene Global Funding sold $800 million of notes (/A-/A-) in two parts on Monday, a market source said.

The company priced $300 million of three-year floating-rate notes at Libor plus 114 bps.

Athene Global Funding sold $500 million of 2.75% three-year fixed-rate notes at a spread of Treasuries plus 140 bps.

BofA Merrill Lynch, Deutsche Bank Securities Inc. and RBC Capital Markets, LLC were the bookrunners.

Athene Global Funding is a trust established to issue debt secured by funding agreements issued by Athene Annuity & Life Insurance Co. and Athene Annuity and Life Co. The companies are subsidiaries of Pembroke, Bermuda-based Athene Holding Ltd.

Basin Electric offers bonds

Basin Electric Power Cooperative kicked off a round of fixed income investors calls on Monday for a $500 million Rule 144A and Regulation S offering of 30-year first mortgage bonds (A3/A/A), according to a market source.

MUFG, RBC and U.S. Bancorp Investments, Inc. are arranging the calls.

Basin Electric Power Cooperative is an electric generation and transmission cooperative based in Bismarck, N.D.

Comcast tightens

Comcast’s 3.3% notes due 2027 firmed about 3 bps on Monday to 95 bps bid, according to a market source.

Comcast sold $1.25 billion of the notes (A3/A-/A-) on Jan. 5 at Treasuries plus 95 bps.

Comcast is a media and technology company based in Philadelphia.

Apple firms

Apple’s 3.35% notes due 2027 traded about 1 bp better on Monday at 80 bps bid, a market source said.

Apple sold $2.25 billion of the 10-year notes (Aa1/AA+/) at par to yield a spread of Treasuries plus 88 bps on Feb. 2.

The computer, mobile communication and media devices company is based in Cupertino, Calif.

AT&T eases

AT&T’s 4.25% notes due 2027 eased about 4 bps in secondary trading on Monday to 174 bps bid, according to a market source.

The company priced $2 billion of the notes (Baa1/BBB+/A-) on Jan. 31 at a spread of Treasuries plus 180 bps.

AT&T is a Dallas-based telecommunications company.

Verizon improves

Verizon Communications’ 4.125% notes due 2027 firmed about 1 bp during the day to 156 bps bid, a source said.

Verizon sold $3.25 billion of the notes (Baa1/BBB+/A-) on March 13 at a spread of Treasuries plus 160 bps.

The telecommunications company is based in New York City.

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