Morning Commentary: Blackstone, Hudson Pacific to price guaranteed senior notes; NetApp holds calls

By Cristal Cody

Tupelo, Miss., Sept. 25 – A couple of reported issuers lined up bond deals early Monday to price in the investment-grade primary market.

Blackstone Holdings Finance Co. LLC is offering guaranteed senior notes. The deal is expected to include $600 million of 10- and 30-year bonds, according to Fitch Ratings.

Hudson Pacific Properties, LP is marketing 10-year guaranteed senior notes.

In other action, NetApp Inc. (Baa2/BBB+) is holding investor calls on Monday for a possible deal, a market source said. J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are arranging the calls.

NetApp is a storage and data management company based in Sunnyvale, Calif.

In the high-grade secondary market early Monday, AT&T Inc.’s bonds (Baa1/BBB+/A-) remain active.

AT&T’s 3.9% notes due Aug. 14, 2027 were quoted at 100.50, up from where the notes went out on Friday at 100.15, according to a market source.

AT&T sold $5 billion of the notes on July 27 at 99.827 to yield 3.92% and a spread of 160 basis points over Treasuries.

The company plans to acquire Time Warner Inc. (Baa2/BBB/BBB+) in an $85.4 billion cash and stock deal expected to close before the end of the year.

Time Warner’s 2.95% notes due July 15, 2026 softened to 95.23 in thin trading over the morning. The notes last traded on Friday at 97.02.

The New York-based media and entertainment company sold $800 million of the notes on May 5, 2016 at 98.70 to yield 3.1%, or a spread of Treasuries plus 135 bps.

Secondary trading volume on Friday totaled $13.5 billion, according to Trace.

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