Morning Commentary: Time Warner Cable bonds active in secondary; Goldman Sachs paper softens

By Cristal Cody

Tupelo, Miss., May 28 – Time Warner Cable Inc.’s bonds continue to trade heavily in the secondary market, tightening as much as 25 basis points, a market source said early Thursday.

The company’s bonds have tightened more than 60 bps since Tuesday following the announcement it will be acquired by Charter Communications, Inc. in a cash and stock deal valued at $78.7 billion.

Investment-grade bonds overall were mixed in early trading.

Goldman Sachs Group Inc.’s 3.75% senior notes due 2025 brought a week ago traded about 1 bp wider than issuance.

The Markit CDX North American Investment Grade series 23 index closed 1 bp tighter at a spread of 63 bps on Wednesday.

Time Warner Cable trades

Time Warner Cable’s 5% senior notes due 2020 were quoted 25 bps tighter at 175 bps offered, a market source said.

The notes (Baa2/BBB/BBB) traded 65 bps better on Wednesday at 200 bps offered.

The company sold $1.5 billion of the notes in 2009 at Treasuries plus 188 bps.

The broadband communications company is based in New York City.

Goldman eases

Goldman Sachs’ 3.75% senior notes due 2025 traded modestly wider at 151 bps offered, a market source said.

The company sold $2.25 billion of the 10-year notes (Baa1/A-/A) on May 19 at Treasuries plus 150 bps.

The financial services company is based in New York City.

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