| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers V > Headlines for Verizon Communications Inc. > News item |
Morning Commentary: High-grade action quiets following hefty AT&T deal; telecom bonds trade
By Cristal Cody
Tupelo, Miss., July 28 – Activity in the high-grade bond market slowed early Friday following the year’s largest corporate bond offering from AT&T Inc., which priced $22.5 billion of notes in seven tranches in the previous session.
More than $33 billion of bonds priced in the first four days of the week, much higher than the $20 billion to $25 billion of supply that market participants forecasted.
In the secondary market, bonds in the telecommunications sector continued to be heavily traded over the morning, a source said.
AT&T’s existing 4.25% notes due March 1, 2027 (Baa1/BBB+/A-) were up a dime from Thursday at 103.44 as trading got underway on Friday.
The Dallas-based telecommunications company sold $2 billion of the notes on Jan. 31, 2017 at 99.94 to yield 4.26% and a spread of Treasuries plus 180 basis points.
AT&T plans to acquire Time Warner Inc. in an $85.4 billion cash and stock deal expected to close before the end of the year.
Verizon Communications Inc.’s notes (Baa1/BBB+/A-) also were active in the secondary market on Friday, a source said.
Verizon’s 4.125% notes due March 16, 2027 (Baa1/BBB+/A-) were up modestly at 103.08 from where the notes last traded at 102.97 on Thursday, a market source said.
Verizon sold $3.25 billion of the bonds on March 13 at 99.256 to yield 4.22% and a spread of Treasuries plus 160 bps.
The telecommunications company is based in New York City.
Overall secondary market volume totaled $19.58 billion on Thursday, compared to $20.43 billion on Wednesday, $19.2 billion on Tuesday and $13.3 billion on Monday, according to Trace.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.