Home Capital sells C$150 million; Rogers Communications bonds widen 10 bps; telecom weak

By Cristal Cody

Prospect News, April 29 - Home Capital Group Inc. priced C$150 million of 5.2% senior debentures due April 15, 2016 in the lone bond sale in Canada on Friday, an informed bond source said.

Home Capital's new debentures had not been cleared for secondary trading late afternoon, but the notes traded in the gray market about 5 basis points tighter, another source said.

"Having said that, when they first started marketing the deal, the spreads they were talking about were a lot tighter than where it came at 265 [bps]," the source said.

Initially, price talk on the notes was the low- to mid-200 bps range.

Corporate bonds narrowed a basis point or two in trading on Friday, except the telecom sector, which has seen an abundance of new deals on the long end of the curve since March, according to one bond source.

"We had a supply in telecom product in March that pushed spreads out a little bit," the source said. "The market hadn't seen much non-financial supply in the long end subsequent to that."

Telecom companies including Rogers Communications Inc. and Bell Aliant Regional Communications LP have brought more than C$3 billion of bond deals in the past month.

Rogers Communications' new 10-year notes (Baa2/BBB/DBRS: BBB) widened 10 bps to 15 bps in trading on Friday, the source said.

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