Morning Commentary: Disney preps Canadian dollar issue; SL Green offers bonds

By Cristal Cody

Tupelo, Miss., Oct. 3 – Two investment-grade companies signaled intentions early Tuesday to price new bonds.

Walt Disney Co. plans to return to the primary market with a SEC-registered offering of Canadian dollar-denominated seven-year notes.

SL Green Operating Partnership, LP is marketing five-year senior notes.

Otherwise, financial markets were mostly quiet over the morning, a source said.

About $20 billion of total supply is forecasted for the week, a market source said.

In the secondary market, trading volume totaled $14.63 billion on Monday, according to Trace.

AT&T Inc.’s 3.9% notes due Aug. 14, 2027 (Baa1/BBB+/A-) continued to trade heavily early Tuesday, a market source said. The notes have been bouncing around in price and were seen at 100.82 early in the session. The notes went out on Monday at 101.25.

The company sold $5 billion of the notes on July 27 at 99.827 to yield 3.92% and a spread of 160 basis points over Treasuries.

AT&T is expected to close its $85.4 billion cash and stock acquisition of Time Warner Inc. (Baa2/BBB/BBB+) before the end of the year.

Time Warner’s 2.95% notes due July 15, 2026 were better early Tuesday at 95.27. The notes last traded in the previous session at 94.71.

The New York-based media and entertainment company sold $800 million of the notes on May 5, 2016 at 98.7 to yield 3.1%, or a spread of Treasuries plus 135 bps.

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