Charter leads $22 billion day as tone improves; bank paper flat to wider in secondary

By Aleesia Forni

Virginia Beach, July 9 – Charter Communications Inc. came to the primary market with $15.5 billion of acquisition financing on Thursday as the high-grade market’s tone turned positive, thanks in part to a rebound in Chinese stocks.

Other issuers including John Deere Capital Corp., American Honda Finance Corp., Commonwealth Bank of Australia, International Finance Corp. and Ventas Realty, LP also rushed the high-grade primary to take advantage of market conditions.

Tranches of Charter’s sale priced between 5 basis points to 15 bps tight of initial thoughts, and the deal’s book nabbed more than $40 billion of orders.

In other primary happenings, John Deere Capital priced a $1 billion two-part offering, American Honda Finance sold a $1.25 billion offering of senior notes, and Ventas Realty priced an upsized $500 million issue of long 10-year notes.

In total, the high-grade primary market hosted more than $22 billion of new issuance on Thursday, pushing the week’s total to $36 billion.

Meantime, the Markit CDX North American Investment Grade series 23 index was 1 bps tighter at a spread of 72 bps.

Bank and financial paper was flat to 1 bp wider overall during the session.

Bonds from Goldman Sachs Group, Inc. and JPMorgan Chase & Co. widened slightly on the day, while Citigroup Inc.’s 3.3% senior notes due 2025 firmed 1 bp.

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