Charter, Main Street Capital tap existing bonds; AXIS offers notes; Experian holds deal calls

By Cristal Cody

Tupelo, Miss., Dec. 2 – Charter Communications, Inc. priced a $1.3 billion add-on to its 4.8% senior secured notes due March 1, 2050 on Monday.

Charter also was in the primary market during the session with a $1.2 billion tap of its junk-rated 4¾% senior notes due March 1, 2030 (expected ratings B1/BB/BB+) via issuers CCO Holdings, LLC/CCO Holdings Capital Corp.

In other supply, Main Street Capital Corp. brought a $75 million add-on to its 5.2% notes due May 1, 2024 (/BBB/) on Monday.

Meanwhile, AXIS Specialty Finance plc held a roadshow over the day for a registered offering of fixed-rate reset junior subordinated notes due 2040.

Also on Monday, Experian Finance plc held fixed income investor calls for a dollar-denominated Rule 144A and Regulation S offering of 10-year senior notes (Baa1/A-/), according to a market source.

HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Santander Investment Securities Inc. and Wells Fargo Securities LLC are the arrangers.

Elsewhere, the Federal Home Loan Bank System announced that it would skip pricing a Global note on Monday. The next scheduled opportunity for FHLBanks to price a Global note will be on Dec. 18.

While supply stayed light in the first session after the Thanksgiving Day holiday break, strong deal volume is expected this week with about $15 billion to $20 billion of issuance forecast by syndicate sources.

Deal volume is expected to thin over the remainder of December with the month projected to post a total of about $20 billion to $30 billion of investment-grade issuance, syndicate sources said.

Last week, high-grade issuers priced $3.75 billion of dollar-denominated notes ahead of the holiday break on Thursday and Friday.

Corporate investment-grade funds inflows softened to $4.55 billion for the week ended Wednesday from $5.19 billion in the prior week, according to Lipper US Fund Flows.

The Markit CDX North American Investment Grade 33 index closed Monday at a spread of 51.5 basis points, 2 bps softer than where the index ended Wednesday ahead of the holiday weekend.

Charter prices $1.3 billion tap

Charter Communications priced a $1.3 billion tap of its 4.8% senior secured notes due March 1, 2050 (Ba1/BBB-/BBB-) on Monday at a spread of Treasuries plus 240 bps, according to a market source.

The notes priced tighter than initial talk in Treasuries plus 255 bps area.

Subsidiaries Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. were the issuers.

Bookrunners were Deutsche Bank Securities Inc., Mizuho Securities USA Inc. and Morgan Stanley & Co. LLC.

Charter originally sold the notes in a $1.5 billion offering on Oct. 15 at 99.436 to yield 4.836% and a spread of Treasuries plus 260 bps. The total outstanding is now $2.8 billion.

The bonds are guaranteed by all of the issuers’ subsidiaries that guarantee the obligations of Charter Communications Operating, LLC under the company’s credit agreement.

The broadband communications company is based in Stamford, Conn.

Main Street reopens notes

Main Street Capital was in the primary market with a $75 million add-on to its 5.2% notes due May 1, 2024 (/BBB/) on Monday that came at 105.001 to yield 3.951%, according to an FWP filing with the Securities and Exchange Commission.

The notes were sold with a spread of 230 bps over Treasuries.

RBC Capital Markets LLC was the active bookrunner. BB&T Securities, LLC and Raymond James & Associates Inc. were passive bookrunners.

Main Street capital originally issued $250 million of the notes on April 23 at 99.125 to yield 5.401%, or a spread of 300 bps over Treasuries. The total outstanding is now $325 million.

The company is a Houston, Texas-based principal investment firm that provides debt and equity capital to middle-market companies.

AXIS plans deal

AXIS Specialty Finance held a roadshow on Monday for a registered offering of fixed-rate reset junior subordinated notes due 2040 (Baa1/A-/), according to a market source and a 424B5 filing.

Pricing is expected on Tuesday.

Wells Fargo Securities LLC and Citigroup Global Markets Inc. are the bookrunners.

The notes are fully and unconditionally guaranteed by parent company AXIS Capital Holdings Ltd.

AXIS is a Pembroke, Bermuda-based insurance and reinsurance company with U.S. operations based in Alpharetta, Ga.

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