Morning Commentary: Amphenol, Carlisle offer notes; Carrier deal eyed; Charter active

By Cristal Cody

Tupelo, Miss., Feb. 13 – Deal volume in the high-grade bond primary market on Thursday is expected to include several issuers.

Amphenol Corp. is offering fixed-rate senior notes.

Carlisle Cos. Inc. also plans to price fixed-rate notes.

A possible $9.2 billion offering of senior notes (Baa3/BBB) is anticipated from Carrier Global Corp. during the session after the company completed a two-day round of fixed income investor calls on Wednesday. The company is being spun off from United Technologies Corp.

Otis Worldwide Corp., which also is being spun off from United Technologies, will hold fixed income investor calls on Friday for a potential $5.3 billion senior note (Baa2/BBB) offering.

High-grade issuers have priced more than $18 billion of bonds week to date.

About $25 billion to $35 billion of supply is expected this week, according to syndicate sources.

The primary market was quiet on Wednesday with no reported bond issuers.

Secondary market volume was heavy during the session with $23.94 billion of corporate bonds traded, up from $22.14 billion on Tuesday and $17.87 billion on Monday, according to Trace data.

Charter Communications, Inc.’s 4.8% senior secured notes due March 1, 2050 that were reopened in December were heavily traded on Wednesday and remained active early Thursday, market sources said.

The notes (Ba1/BBB-/BBB-) declined to 108.58 in secondary trading over the morning from 108.73 on Wednesday.

The issue went out on Wednesday about 3 basis points tighter in the 224 bps area.

Charter reopened the notes on Dec. 2 in a $1.3 billion add-on at 101.964 to yield 4.677% and a spread of Treasuries plus 240 bps.

The Stamford, Conn.-based broadband communications company originally sold the notes in a $1.5 billion offering on Oct. 15, 2019 at 99.436 to yield 4.836% and a spread of Treasuries plus 260 bps. The total outstanding is $2.8 billion.

The notes were issued through subsidiaries Charter Communications Operating, LLC and Charter Communications Operating Capital Corp.

© 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.