Midday Commentary: Praxair trades flat to weaker; CenturyLink bonds active, firm in secondary

By Aleesia Forni

Columbus, Ohio, Feb. 14 - Praxair Inc.'s new bonds were trading unchanged to wider on Thursday, a trader said.

The company priced $900 million of notes in two tranches on Wednesday.

On Thursday morning, Praxair's $400 million of 0.75% three-year notes was quoted unchanged at 35 bps bid, 32 bps offered.

The company sold the notes with a spread of Treasuries plus 35 basis points on Wednesday.

The $500 million tranche of 2.7% 10-year notes was trading 3 bps wider at 75 bps bid, 72 bps offered at midday following Wednesday's pricing with a spread of 72 bps over Treasuries.

The trader noted activity in CenturyLink Inc.'s bonds on Wednesday, following the company's weak earnings announcement and credit rating downgrade.

CenturyLink's bonds initially "gapped wider" early during the session but then recovered that ground on short covering and were trading 10 bps tighter from Wednesday's close by late morning.

Fitch cut the company's senior unsecured debt to a junk level of BB+ from its previous BBB- level, citing CenturyLink's decision to begin a stock repurchase program, an action that will result in a lower level of debt reduction, the agency said.

Moody's Investors Service put the company's Baa3 debt rating on review for downgrade for the same reason.

Standard & Poor's confirmed CenturyLink's BB corporate credit rating.

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