BNP brings notes following second yuan devaluation; AT&T, Verizon widen; Time Warner eases

By Aleesia Forni and Cristal Cody

Virginia Beach, Aug. 12 – The primary market was quiet again on Wednesday following China’s devaluation of its currency for a second straight day.

In the day’s lone reported new issue, BNP Paribas sold $1.5 billion of additional tier 1 notes at par to yield 7.375%, the tight end of price talk.

BNP Paribas Securities Corp. was the bookrunner for the perpetual notes, which are non-callable for 10 years.

The financial services company is based in Paris.

In total, the investment-grade primary market has hosted roughly $16.2 billion so far this week.

Investment-grade bonds widened over the session and credit spreads headed out 1 bp weaker on the day.

AT&T Inc.’s bonds (/BBB+/A-) were weaker after the company provided a strategy outlook update on Wednesday following its acquisition of DirecTV in July.

Verizon Communications Inc.’s notes (Baa1/BBB+/A-) also were wider on the day.

Time Warner Inc.’s bonds (Baa2/BBB) eased 1 bp to 4 bps in the secondary market.

The Markit CDX North American Investment Grade index ended 1 bp wider at a spread of 76 bps.

Oneok plans sale

In forward calendar news, Oneok Inc. announced plans to sell a $500 million offering of senior notes in a company news release.

Citigroup Global Markets Inc. is the bookrunner, and Mizuho Securities is the co-manager.

Proceeds from the offering will be used to purchase additional common units from Oneok Partners, LP in a private placement.

The natural gas company is based in Tulsa, Okla.

AT&T widens

AT&T’s 3.4% notes due 2025 eased 2 bps in trading over the session to 196 bps bid, a market source said.

The company sold $5 billion of the notes on April 23 at a spread of Treasuries plus 150 bps.

AT&T’s 4.75% bonds due 2046 widened 8 bps from Tuesday to 254 bps bid in late afternoon trading on Wednesday.

AT&T sold $3.5 billion of the bonds in the April 23 offering at Treasuries plus 215 bps.

The telecommunications company is based in Dallas.

Verizon weak

Verizon’s 3.5% notes due 2024 were quoted at 178 bps bid on Wednesday, 7 bps weaker from the previous session, according to a market source.

The company sold $2.5 billion of the notes on Oct. 22, 2014 at a spread of Treasuries plus 135 bps.

The telecommunications company is based in New York City.

Time Warner soft

Time Warner’s 3.6% notes due 2025 widened 4 bps to 189 bps bid in secondary trading, a market source said.

The company sold $1.5 billion of the notes on May 28 at Treasuries plus 150 bps.

Time Warner’s 4.85% debentures due 2045 eased 1 bp over the day to 215 bps bid.

The company sold $600 million of the debentures in the May 28 offering at Treasuries plus 195 bps.

Time Warner is a media company based in New York.

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