Charter Communications prices $1.5 billion notes to strong demand; supply to stay thin

By Cristal Cody

Tupelo, Miss., June 28 – Charter Communications, Inc. tapped the high-grade primary market on Thursday as the sole reported issuer.

The company sold $1.5 billion of senior secured notes (Ba1/BBB-/BBB-) in two tranches with a combined final book size of $3.6 billion.

The notes were seen in aftermarket trading 2 basis points to 5 bps tighter.

In other new issuance on Thursday, the Province of Quebec brought a Canadian-dollar denominated offering that was registered with the Securities and Exchange Commission.

More than $4 billion of investment-grade corporate bonds have priced week to date.

Market sources had forecasted about $15 billion to $20 billion of volume with some predicting as little as $5 billion of new issuance for the week.

Other issuers that have been marketing expected bond offerings over the week include Toyota Motor Credit Corp.

Toyota Motor Credit has held fixed-income investor calls that began in the United States, Europe and Asia on Tuesday for three tranches of the SEC-registered senior notes, according to a market source.

Supply is expected to remain light until mid-July when bank and financial issuance likely will ramp up following the end of second quarter earnings blackout periods, according to market sources.

The Markit CDX North American Investment Grade 30 index closed mostly unchanged at a spread of 68 bps.

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