Morning Commentary: DirecTV notes active in high-grade secondary; Walgreen paper improves

By Cristal Cody

Tupelo, Miss., Dec. 3 – High-grade bonds were mixed in the secondary market early Wednesday as issuance remains strong, according to market sources.

DirecTV Holdings LLC’s existing 4.45% notes due 2024 continued to trade heavily over the morning following the company’s $1.2 billion offering of new 10-year notes on Tuesday, a source said.

In other trading, the 4.8% senior notes due 2044 that Walgreen Co. subsidiary Walgreens Boots Alliance Inc. priced in November remain about 10 basis points better than issuance, according to a market source.

The Markit CDX North American Investment Grade series 23 index ended Tuesday 1 bp tighter at a spread of 62 bps.

New bond deals are expected to price over the session from issuers including Ameren Illinois Co., Viacom, Inc., UnitedHealth Group Inc. and BB&T Corp.

DirecTV eases

DirecTV’s 4.45% notes due 2024 (Baa2/BBB/) eased 4 bps to 161 bps bid, according to a market source.

The notes rose in early trading on Wednesday to 104.4 to yield 3.87% from 104.14 to yield 3.904% on Tuesday, a source said.

DirecTV Holdings and DirecTV Financing Co. sold $1.25 billion of the notes on March 17, 2014 at 99.63 to yield 4.496% and with a spread of Treasuries plus 180 bps.

The digital entertainment company is based in El Segundo, Calif.

Walgreen firms

Walgreen’s 4.8% bonds due 2044 (Baa2/BBB/) firmed 1 bp to 160 bps offered in secondary trading, a source said.

The bonds traded higher at 103.4 to yield 4.588% over the morning from where the issue last traded at 102.96 to yield 4.615% in the previous session, according to a market source.

The company sold $1.5 billion of the bonds at 99.98 and with a spread of Treasuries plus 170 bps on Nov. 6.

The drugstore chain is based in Deerfield, Ill.

© 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.