Comcast Debt Offering Glimmers in $12.6bn Day for IG New Issuance

Today’s $4bn, 3-part senior notes debt offering from Comcast Corp. capped a $12.6bn day in IG new issuance. Toyota Motor Credit Corp (TMCC) sold $3bn in a 3-part offering of senior notes, both transactions co-managed by Mischler Financial Group.

Below is excerpted from today’s edition of Quigley’s Corner, authored and published by Ron Quigley, Mischler Financial Group Managing Director & Head of Fixed Income Syndicate

Quigley’s Corner 05-20-2020: Investment Grade New Issues Spotlight on Comcast and Toyota and First Horizon

Today the IG Corporate dollar DCM hosted 8 issuers across 15 tranches totaling $12.675b. The SSA space added 2 issuers and 2 tranches for $3.50b bringing the all-in IG day totals to 10 issuers, 17 tranches and $16.175b.

Mischler Financial served as an active Co-Manager on today’s Toyota and Comcast transactions as well earning a Selling Group role for our placement capabilities on First Horizon National Bank’s PerpNC5 Series “E” $25 par preferred.  Additionally, it would be very remiss of me not to mention our active role in placing many orders on today’s State of Connecticut $850mm Special Tax Obligation Bonds. So another very active day for the A-Team here at Mischler Financial, our great nation’s oldest Service Disabled Veteran broker dealer.

Thanks to all the issuers involved, the syndicate desks who worked with us, and of course the investors who place through us. We appreciate our partnership and patronage very much. Both Comcast and Toyota Deal Dashboards are below that take a deeper dive into the relative value, spread compression during today’s book builds, NICS, and oversubscription rates as well as use of proceeds and final pricing details.

We thank both entities for their prolific Diversity and Inclusion procurement initiatives, under which is included our SDVBE.  Thanks for all that your Comcast Corp. and Toyota Motor Credit Corp. do for our veteran and active duty men and women in uniform, especially as we will all be reminded of their sacrifices as we enter this coming Memorial Day weekend.

Comcast Corp. Deal Dashboard

Proceeds from today’s transaction will be used entirely for the refinancing of debt, including $700 million of 1.625% callable notes due January 15, 2022, $1.43 billion of 4.05% callable Formosa notes due August 1, 2046 and certain of Comcast Corp’s. other debt securities with near term maturities.

………here’s a snap shot of today’s final Comcast Corp’s. book sizes and oversubscription rates – the measure of investor demand:

……and here’s a check of spread compression from IPTs thru the launch and final pricing, NIC and where the paper is currently trading.

Comcast Corp. Final Pricing Details:
CMCSA $1.5b 1.95% due 1/15/2031 @ $99.686 to yield 1.983% or T+130  MW+20

CMCSA (tap) $800mm 3.75% due 4/01/2040 @ $115.131 to yield 2.737% or T+135  MW+40 New Total: $1.6b

CMCSA $750mm 2.80% due 1/15/2051 @ $99.248 to yield 2.837% or T+145 MW+25