Morning Commentary: AT&T’s recent $17.5 billion megadeal eases; credit spreads tighter overall

By Aleesia Forni

Virginia Beach, April 27 – High-grade bond spreads firmed to open the week on Monday.

The Markit CDX North American Investment Grade series 23 index was 1 basis point tighter at a spread of 60 bps.

In other trading on Monday, AT&T Inc.’s recently priced $17.5 billion megadeal widened slightly compared to levels seen on Friday.

The company’s $3 billion of 2.45% notes due 2020, which sold with a spread of Treasuries plus 110 bps, traded at 100 bps bid, 96 bps offered, 3 bps wider compared to Friday.

A $2.75 billion tranche of seven-year notes was also quoted 3 bps wider at 125 bps bid, 121 bps offered.

The notes sold with a spread of 130 bps over Treasuries.

The $5 billion of 10-year notes traded around 2 bps wider at 139 bps offered early during the session.

The notes sold at Treasuries plus 150 bps on Thursday.

The company’s $2.5 billion of 20-year notes were pegged at 182 bps offered, 3 bps wider compared to Friday’s close.

Pricing was at a spread of Treasuries plus 190 bps.

Finally, AT&T’s $3.5 billion of 4.75% notes due 2046, which sold at Treasuries plus 215 bps, traded around 5 bps wider at 205 bps offered.

AT&T is a Dallas-based telecommunications company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.