Halliburton bond sees blowout demand; Halliburton tightens in aftermarket; Charter mixed

By Aleesia Forni and Cristal Cody

Virginia Beach, Nov. 5 – Halliburton Co.’s jumbo acquisition financing highlighted a Thursday primary that saw more than $13 billion of new investment-grade-rated paper price.

Proceeds from the new $7.5 billion offering will be used to fund the energy company’s $34 billion acquisition of Baker Hughes Inc.

In what one source noted was an extremely uncommon occurrence, all five tranches of the new bond sold 5 basis points tighter than price guidance.

Furthermore, the deal attracted an order book that was more than five times oversubscribed.

The market’s tone continues to hold up well, with deals seeing significant order books even in the face of the onslaught of supply the market has digested in recent weeks.

The week’s total supply now sits at more than $26 billion.

In other primary happenings on Thursday, the primary saw deals from Shell International Finance BV, Westar Energy, Inc., Stanley Black & Decker Inc. and Alexandria Real Estate Equities, Inc.

Halliburton’s new notes traded about 4 bps to 12 bps tighter in the secondary market.

Shell International Finance’s existing notes were mostly unchanged over the session.

Charter Communications Inc.’s existing senior secured notes (Ba1/BBB-) were mixed in secondary trading after tightening on Wednesday and early Thursday.

The Markit CDX North American Investment Grade 25 index eased about 1 bp to end the day at a spread of 78 bps.

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