TCP taps primary; British American Tobacco eyes multi-currency deals; heavy supply forecast

By Cristal Cody

Tupelo, Miss., Aug. 4 – TCP Capital Corp. tapped the high-grade primary market on Friday with an upsized $125 million offering of five-year notes.

Murphy Oil Corp. also priced $550 million of split-rated notes.

The session otherwise was mostly quiet ahead of the late summer weekend.

British American Tobacco plc is expected to kick off a roadshow on Monday for offerings in multiple currencies. Sizing on the company’s dollar offering of notes was talked in the $25 billion area, a source said.

Deal action is expected to ramp up in the week ahead before the last of summer and Labor Day holiday vacations slow issuance, according to a market source.

Syndicate sources are forecasting about $35 billion of supply for the upcoming week.

New bonds were mixed in the secondary market on Friday.

Kinder Morgan, Inc.’s $1.25 billion of senior notes (Baa3/BBB-/BBB-) priced in two parts in the previous session traded mostly wrapped around issuance.

Comcast Corp.’s $2.5 billion two-part offering of notes (A3/A-/A-) sold on Tuesday softened about 5 basis points.

Digital Realty Trust LP’s $1.35 billion of guaranteed fixed-rate bonds (Baa2/BBB/BBB) priced in two parts on Wednesday were mixed.

The Markit CDX North American Investment Grade index softened less than 1 bp to close at a spread of 58 bps.

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