Comcast prices $27 billion notes; Camden Property, Kommuninvest print; Tyson firms

By Cristal Cody

Tupelo, Miss., Oct. 2 – Comcast Corp. priced $27 billion of senior notes in 12 tranches on Tuesday in a deal expanded from an initial nine-part offering.

The transaction is the fourth-largest investment-grade issuance on record, a source said.

Proceeds from the deal will be used to help fund Comcast’s $39 billion acquisition of London-based media and telecommunications company Sky plc.

In other primary market action, Camden Property Trust sold $400 million of 10-year notes following a round of fixed income investor calls in the previous session.

Also on Tuesday, Kommuninvest I Sverige AB priced $1 billion of three-year notes.

Comcast’s deal pushes the week’s total issuance volume to more than $32 billion.

About $40 billion to $45 billion of total high-grade supply was forecast for the week by market sources.

Several deals are in the pipeline, including a dollar-denominated Rule 144A and Regulation S note offering from Suncorp-Metway Ltd.

Suncorp-Metway (A1/A+/A+) started a roadshow on Monday for the offering via Citigroup Global Markets Inc., J.P. Morgan Securities LLC and RBC Capital Markets, LLC.

The Markit CDX North American Investment Grade 31 index closed more than 1 basis point wider on the day at a spread of 59 bps.

In the secondary market, Tyson Foods, Inc.’s senior notes (Baa2/BBB/BBB) that priced a week ago remain better than issuance. The 5.1% notes due Sept. 28, 2048 are trading more than 10 bps tighter than where the issue priced.

Comcast prints 12 tranches

Comcast priced $27 billion of guaranteed senior notes (A3/A-/A-) in 12 tranches on Tuesday, according to a market source.

The company sold $1.25 billion of two-year floating-rate notes at Libor plus 33 bps.

A $1.75 billion tranche of 3.3% two-year fixed-rate notes priced with a spread of 50 bps over Treasuries.

Comcast sold $1 billion of three-year floating-rate notes at Libor plus 44 bps and priced a $2 billion tranche of 3.45% three-year fixed-rate notes with a Treasuries plus 60 bps spread.

A $500 million issue of floating-rate notes due April 15, 2024 was sold at Libor plus 63 bps. Comcast also priced $2.5 billion of 3.7% notes due April 15, 2024 at a 75 bps over Treasuries spread.

In a seven-year tranche, Comcast sold $3 billion of 3.95% notes at a spread of 95 bps over Treasuries.

The company placed $4 billion of 4.15% 10-year notes with a Treasuries plus 110 bps spread.

A $1.5 billion offering of 4.25% notes due Oct. 15, 2030 came at a spread of 120 bps over Treasuries.

Comcast sold $3 billion of 4.6% notes due Oct. 15, 2038 at a Treasuries plus 140 bps spread.

In a 30-year slice, the company priced $4 billion of 4.7% bonds with a spread of 150 bps over Treasuries.

Finally, a $2.5 billion tranche of 4.95% notes due Oct. 15, 2058 priced at a 175 bps over Treasuries spread.

BofA Merrill Lynch, Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC, Mizuho Securities USA Inc., MUFG and SMBC Nikko Securities America, Inc. were the bookrunners.

Comcast is a media and technology company based in Philadelphia.

Camden Property prices

Camden Property Trust priced $400 million of 4.1% 10-year notes (A3/BBB+/A-) during the session at a spread of 105 bps over Treasuries, or 99.893 to yield 4.113%, according to an FWP filing with the Securities and Exchange Commission.

The bookrunners were Deutsche Bank Securities Inc., Jefferies LLC, JPMorgan, BofA Merrill Lynch and Wells Fargo.

The real estate investment trust for apartment communities is based in Houston.

Kommuninvest prices

Kommuninvest (Aaa/AAA) priced $1 billion of 3% notes due Nov. 16, 2021 on Tuesday at mid-swaps plus 3 bps, or a spread of Treasuries plus 19.4 bps, according to market sources.

The notes were initially talked to price in the mid-swaps plus 3 bps area.

The final book size was more than $1.2 billion.

BofA Merrill Lynch, BNP Paribas Securities Corp., HSBC Securities (USA) Inc. and JPMorgan were the bookrunners.

Kommuninvest is an Orebro-based company that offers funding to municipalities of Sweden.

Tyson Foods firms

In secondary trading, Tyson Foods’ 5.1% notes due Sept. 28, 2048 firmed about 1 bp to 177 bps bid on Tuesday, according to a market source.

The notes traded on Friday at 182 bps bid.

Tyson sold $500 million of the bonds on Sept. 25 at a Treasuries plus 190 bps spread.

The meat and food production company is based in Springdale, Ark.

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