Morning Commentary: Energy suppliers in pipeline; Eversource, Nstar, Wisconsin Power to price

By Cristal Cody

Tupelo, Miss., Oct. 2 – Several issuers, including energy suppliers, prepared early Monday to price new investment-grade bonds.

Eversource Energy marketed a $900 million two-tranche offering of senior notes.

Nstar Electric Co., doing business as Eversource Energy, is offering a $350 million tap of its 3.2% debentures due May 15, 2027.

Wisconsin Power and Light Co. plans to price debentures.

In other expected supply, American Campus Communities Operating Partnership LP intends to price an offering of guaranteed senior notes.

About $20 billion of deal volume is expected over the week, according to a market source.

AT&T trades

Secondary market volume was strong over the previous week, including on Friday when $17.52 billion of bonds were traded, Trace reported.

AT&T Inc.’s 3.9% notes due Aug. 14, 2027 (Baa1/BBB+/A-) traded heavily over the morning as the session kicked off, according to a source. The notes were last seen at 100.45. The notes headed out on Friday at 100.15.

The company sold $5 billion of the notes on July 27 at 99.827 to yield 3.92% and a spread of 160 basis points over Treasuries.

AT&T’s $85.4 billion cash and stock acquisition of Time Warner Inc. (Baa2/BBB/BBB+) is expected to close before the end of the year.

Time Warner’s 2.95% notes due July 15, 2026 traded up to 96.11 over the morning from 94.95 on Friday.

The New York-based media and entertainment company sold $800 million of the notes on May 5, 2016 at 98.70 to yield 3.1%, or a spread of Treasuries plus 135 bps.

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