Discover Bank upsizes; American Tower prices tight; spreads firm; Verizon, Home Depot ease

By Cristal Cody and Aleesia Forni

Virginia Beach, Aug. 4 – A pair of issuers made their way to Monday’s market to kick off the week’s primary activity.

The session saw Discover Bank bring the larger offering to market, pricing a $750 million issue of seven-year senior notes.

The deal was upsized by $250 million and sold tight of price guidance.

A source noted that the deal’s orderbook was around two times oversubscribed.

American Tower Corp. also priced a seven-year offering of notes at the tight end of talk, bringing to market a $650 million trade.

With the summer lull in full swing, the high-grade calendar is expected to be light this week. Sources are expecting around $15 billion of paper to price.

High-grade corporate credit spreads tightened on the day, though bonds traded mostly unchanged to softer on the long end in quiet activity, according to market sources.

The Markit CDX North American Investment Grade series 22 index firmed 3 basis points to a spread of 64 bps after widening on Thursday and Friday.

In the secondary market, Verizon Communications Inc.’s 4.15% senior notes due 2024 traded wider, a market source said.

Morgan Stanley’s 3.875% notes due 2024 were quoted about 7 bps weaker from where the paper traded on Thursday, according to a market source.

Home Depot, Inc.’s 4.4% notes due 2045 have widened to near the June issuance price, a source said.

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