Morning Commentary: Synovus, AT&T to price notes; AT&T, Time Warner bonds active in secondary

By Cristal Cody

Tupelo, Miss., Oct. 25 – The investment-grade primary market is expected to stay busy on Wednesday with several issuers in the deal pipeline.

Synovus Financial Corp. is offering five-year senior notes.

AT&T Inc. is marketing $25-par global notes due 2066.

In addition, Charles Schwab Corp. plans to price depositary shares that represent a 1/100th interest in a share of series F fixed-to-floating rate non-cumulative perpetual preferred stock.

In other activity, Freddie Mac announced it will forgo issuing notes on its Oct. 25 announcement date.

The three-month Libor yield was up 1 basis point to 1.37% early Wednesday.

AT&T, Time Warner trade

AT&T’s bonds (Baa1/BBB+/A-) have traded heavily over the past month. The company plans to close its $85.4 billion cash and stock acquisition of Time Warner Inc. (Baa2/BBB/BBB+) before the end of the year.

AT&T’s 3.9% notes due Aug. 14, 2027 were seen over the morning at 99.35, a source said. The notes went out on Tuesday at 99.69.

AT&T sold $5 billion of the notes on July 27 at 99.827 to yield 3.92% and a spread of 160 bps over Treasuries.

Time Warner’s 2.95% notes due July 15, 2026 traded over the morning in the 95.06 to 96.06 area, a market source said. The notes last traded on Tuesday at 96.24.

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.

Secondary trading volume rose to $23.41 billion on Tuesday from $15.52 billion on Monday, according to Trace.

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