High-grade action thins; credit spreads firm; Amazon.com, AT&T tighten; Time Warner softens

By Cristal Cody

Tupelo, Miss., Sept. 1 – Investment-grade bonds ended mostly better in thin action before the long weekend.

The Markit CDX North American Investment Grade index closed about 1 basis point tighter at a spread of 57 bps.

Amazon.com, Inc.’s 3.15% notes due Aug. 22, 2027 firmed about 1 bp and have traded mostly tighter on the week after the company closed on Monday its $13.7 billion cash acquisition of Whole Foods Markets Inc.

Amazon.com’s 3.15% notes due Aug. 22, 2027 firmed about 1 bp to 82 bps bid, a source said.

The Seattle-based online commerce company sold $3.5 billion of the notes (Baa1/AA-/) on Aug. 15 as part of a $16 billion seven-tranche offering at a spread of Treasuries plus 90 bps.

AT&T tightens

In other secondary trading, AT&T Inc.’s bonds (Baa1/BBB+/A-) have been active and trading stronger over the last two sessions. The company plans to acquire Time Warner Inc. (Baa2/BBB/BBB+) in an $85.4 billion cash and stock deal scheduled to close before the end of the year.

AT&T’s 4.25% notes due March 1, 2027 tightened more than 5 bps on Friday to 165 bps bid, according to a market source.

The Dallas-based telecommunications company sold $2 billion of the notes on Jan. 31, 2017 at a spread of Treasuries plus 180 bps.

Time Warner eases

Time Warner’s 2.95% notes due 2026 eased about 7 bps to 156 bps bid on Friday, a source said.

Time Warner (Baa2/BBB/BBB+) sold $800 million of the notes on May 5, 2016 at a spread of 135 bps over Treasuries.

The media and entertainment company is based in New York.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.