Morning Commentary: Charter plans add-on; AXIS offers notes; Experian holds deal calls

By Cristal Cody

Tupelo, Miss., Dec. 2 – A couple of corporate bond issuers moved forward on Monday to tap the high-grade primary market in the first issuance after the Thanksgiving Day holiday break.

Charter Communications, Inc. plans to reopen its $1.5 billion of split-rated 4.8% senior secured notes due March 1, 2050 (Ba1/BBB-/BBB-) in a registered add-on being marketed on Monday.

The issuers are subsidiaries Charter Communications Operating, LLC and Charter Communications Operating Capital Corp.

The notes were first priced on Oct. 15 at 99.436 to yield 4.836% and a spread of Treasuries plus 260 basis points.

In other registered supply, AXIS Specialty Finance plc is offering guaranteed fixed-rate reset junior subordinated notes due 2040.

Also on Monday, Experian Finance plc will hold fixed income investor calls for a dollar-denominated Rule 144A and Regulation S offering of 10-year senior notes (Baa1/A-), according to a market source.

HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Santander Investment Securities Inc. and Wells Fargo Securities LLC are the arrangers.

Elsewhere, the Federal Home Loan Bank System announced that it would skip pricing a Global note on Monday. The next scheduled opportunity for FHLBanks to price a Global note will be on Dec. 18.

Strong deal volume is expected this week with about $15 billion to $20 billion of issuance forecast by syndicate sources.

Supply is expected to thin over the remainder of December with the month projected to post a total of about $20 billion to $30 billion of investment-grade issuance, syndicate sources said.

Last week, high-grade issuers priced $3.75 billion of dollar-denominated notes ahead of the holiday break on Thursday and Friday.

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