Comcast brings $1.43 billion of 4.05% notes; investment-grade funds see $1.1 billion inflows

By Sheri Kasprzak

New York, May 13 – It was another quiet session for investment-grade offerings on Friday, led by a $1.43 billion note deal from Comcast Corp.

The session’s other issuers were Wells Fargo & Co. with $150 million of five-year floating-rate notes that priced at par to yield Libor plus 90 basis points and CenterPoint Energy Houston Electric, LLC with $300 million of 1.85% five-year general mortgage bonds priced at 67 bps over Treasuries.

Meanwhile, high-grade funds saw their 10th consecutive week of inflows at $1.1 billion for the week ended May 11, according to Lipper Inc.

The amount was down from $2.1 billion of inflows the previous week, but it served as a stark contrast to the $1.91 billion of outflows recorded for high-yield funds in the latest week.

“This week’s outflow from the lower-rated asset class topped last week’s $1.8 billion of outflows and was the largest move out of high-yield funds since the week ending Jan. 20,” said Jody Lurie, corporate bond analyst with Janney Montgomery Scott LLC.

“The two consecutive weeks of outflows may be harbinger of the end of the relief rally that began in mid-February.

“Interestingly, a number of firms seem to have priced high-yield details in the face of evidence of fading demand. At the current run-rate, May’s number of U.S. corporate high-yield offerings would exceed April’s, which means smaller deals from more companies and a shift from the recent trend in both investment grade and high yield.

“At the current run-rate, both the number and amount of investment-grade issuance in May would best other months year-to-date, helped by a very active week.”

Comcast brings notes

Moving back to that Comcast deal, the company priced $1.43 billion of 4.05% notes, said a term sheet.

The notes are due Aug. 1, 2046, priced at par and are redeemable in whole on each Aug. 1 on or after Aug. 1, 2019 at par.

The notes are guaranteed by Comcast Cable Communications, LLC and NBCUniversal Media, LLC.

Deutsche Bank AG, Taipei Branch was the manager for the deal with Morgan Stanley & Co. LLC and Deutsche Bank AG, Taipei Branch as the structuring agents and Mizuho Securities USA Inc. and TD Securities (USA) LLC as the co-structuring agents.

Proceeds will be used for working capital and general corporate purposes.

Based in Philadelphia, Comcast is a media holding company.

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