Comcast sells $4.5 billion bonds; Treasuries attract Federal Realty to deal; Comcast mixed

By Cristal Cody

Eureka Springs, Ark., July 12 – Comcast Corp. tapped the investment-grade market on Tuesday with a $4.5 billion offering of notes (A3/A-/A-) in four tranches.

In other market activity, Federal Realty Investment Trust announced it closed on its $250 million sale on Thursday of 3.625% 30-year senior notes.

“While we did not anticipate accessing the long-term unsecured debt markets until late in 2016 or early 2017, the recent unprecedented strength in the U.S. Treasury market and the attractiveness of our credit caused us to opportunistically issue this very long-term capital, on highly compelling financial terms, at this time,” Donald C. Wood, Federal Realty's president and chief executive officer, said in the release.

The notes (A3/A-/) priced at 97.756 to yield 3.75% and a spread of 160 basis points over Treasuries.

Federal Realty intends to use the proceeds to pay down its revolving credit facility and for general corporate purposes.

Wells Fargo Securities LLC, Deutsche Bank Securities Inc. and U.S. Bancorp Investments Inc. were the bookrunners for the deal.

The Markit CDX North American Investment Grade index ended the day 1 bp tighter at a spread of 71 bps.

In the secondary market, Comcast’s existing bonds traded flat to wider.

Stifel Financial Corp.’s 4.25% senior notes due 2024 reopened on Monday were wrapped around issuance in earlier secondary trading.

Raymond James Financial, Inc.’s 3.625% senior notes due 2026 improved 4 bps from where the bonds traded on Monday.

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