Morning Commentary: Charter, Allstate, AES, MPT, Goldman Sachs BDC, CMS offer notes

By Cristal Cody

Tupelo, Miss., Nov. 19 – Several issuers moved ahead with plans to offer bonds in the high-grade primary market on Thursday.

Charter Communications, Inc. subsidiaries Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. expect to bring three tranches of senior secured notes (Ba1/BBB-/BBB-) to the market.

The deal includes two new tranches and an add-on to the 3.7% notes due April 1, 2051 that were first priced on April 14 in a $1.4 billion tranche.

In other supply, Allstate Corp. is offering two tranches of fixed-rate senior notes (A3/A-/A-) on Thursday to fund its acquisition of National General Holdings Corp.

AES Corp. is marketing a Rule 144A and Regulation S offering of long five- and 10-year green senior notes (Ba1/BBB-/BBB-) on Thursday.

AES held fixed income investor calls for the offering on Wednesday.

MPT Operating Partnership, LP and MPT Finance Corp. plan to price $1 billion of long 10-year senior notes (Ba1/BBB-) that are guaranteed by parent company Medical Properties Trust, Inc.

Meanwhile, Goldman Sachs BDC, Inc. is marketing fixed-rate senior notes (Baa3//BBB-) on Thursday.

Also, CMS Energy Corp. intends to price fixed-to-fixed rate reset junior subordinated notes (Baa2/BBB-/BB+).

High-grade supply has been heavy week to date with more than $31 billion of corporate volume and over $44 billion of both corporate and sovereign, supranational and agency bonds sold.

Volume already has surpassed market expectations of about $25 billion to $30 billion of supply for the week.

Secondary market supply also has been strong week to date.

On Wednesday, $26.58 billion of high-grade corporate issues traded, up from $24.75 billion on Tuesday and $20.2 billion on Monday, according to Trace.

Market tone was positive over the morning in the high-grade space.

The iShares iBoxx Investment Grade Corporate Bond ETF rose 0.3% to $137.34.

The Pimco Investment Grade Corporate Bond index was up 0.35% at $116.49.

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