Morning Commentary: Capital One, Texas Instruments, SL Green offer notes; AT&T improves

By Cristal Cody

Tupelo, Miss., Oct. 26 – Capital One Financial Corp., Texas Instruments Inc. and SL Green Realty Corp. announced plans early Thursday to tap the high-grade primary market.

Capital One is marketing three tranches of senior notes.

Texas Instruments plans to price notes.

SL Green intends to tap its 4.5% senior notes due Dec. 1, 2022, which were first issued in a $200 million offering in November 2012.

More than $25 billion of bonds have priced over the week, surpassing market expectations of about $20 billion of supply, a source said.

In the secondary market on Thursday morning, AT&T Inc.’s bonds (Baa1/BBB+/A-) remained active, a source said.

AT&T’s 3.9% notes due Aug. 14, 2027 were up at 101.06 early Thursday. The notes went out on Wednesday at 99.32.

AT&T 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.

The company plans to close on an $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 traded better at 94.60 at the start of the session, the source said. The bonds last traded on Wednesday at 94.34.

The New York-based media and entertainment company sold $800 million of the notes on May 5, 2016 at 98.70 to yield 3.1%, or a spread of Treasuries plus 135 bps.

Secondary trading volume totaled $21.85 billion on Wednesday, compared to $23.41 billion on Tuesday and $15.52 billion on Monday, according to Trace.

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