Apple, Paccar, Corning in primary; deal pipeline busy; AT&T notes firm; Time Warner eases

By Cristal Cody

Tupelo, Miss., Nov. 6 – Several investment-grade issuers tapped the primary market on Monday, including Apple Inc.

Apple was issuing $7 billion of bonds, a source said. Final pricing details were not immediately available.

Paccar Financial Corp. priced $300 million of three-year notes.

Other issuers planning to price bonds included Corning Inc.

About $30 billion of supply is expected by market sources for the week.

The Markit CDX North American Investment Grade 29 index ended mostly flat to slightly tighter at a spread of 53 basis points.

In the secondary market, Apple’s existing bonds (Aa1/AA+/) traded mostly softer, a source said.

The company’s 3.35% notes due Feb. 9, 2027 eased about 4 bps on Monday to 68 bps bid.

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

In other trading, AT&T Inc.’s bonds (Baa1/BBB+/A-) remain active and improved during the session.

The company’s $85.4 billion cash and stock acquisition of Time Warner Inc. (Baa2/BBB/BBB+) is expected to close before the end of the year.

Time Warner’s 2.95% notes due July 15, 2026 softened about 6 bps on Monday.

Paccar prices $300 million

Paccar Financial (A1/A+/) sold $300 million of 2.05% series O three-year medium-term notes at 99.991 to yield 2.053% and a spread of Treasuries plus 33 bps on Monday, according to an FWP filing with the Securities and Exchange Commission.

BNP Paribas Securities Corp., Citigroup Global Markets Inc., MUFG and Wells Fargo Securities, LLC were the bookrunners.

Paccar Financial is a financing arm of Bellevue, Wash.-based Paccar Inc.

AT&T improves

AT&T’s 3.9% notes due Aug. 14, 2027 firmed about 3 bps on Monday to 163 bps bid, a market source said.

The company sold $5 billion of the notes on July 27 at a spread of 160 bps over Treasuries.

AT&T is a Dallas-based telecommunications company.

Time Warner softens

Time Warner’s 2.95% notes due July 15, 2026 traded about 6 bps weaker to head out at 136 bps bid, according to a market source.

Time Warner sold $800 million of the notes on May 5, 2016 at a spread of Treasuries plus 135 bps.

The media and entertainment company is based in New York.

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