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Watch Sprint Corporation (S)

CME Group Inc (NASDAQ:CME) made a market for its own debt, selling $750 million of 5.3% 30-year paper. The money will be used to redeem $750 million of 5.75% paper maturing next February. The refi will save CME Group Inc (NASDAQ:CME) a little more than $3 million per year in debt service.

Nabors Industries Ltd. (NYSE:NBR) drilled into the markets for $700 million split between three- and 10-year issues with 2.35% and 5.1% coupon rates, respectively. The driller is putting the money toward funding a tender offer for the company’s 2019 9.25% notes. There’s $1.125 billion of that paper outstanding and, if I did the math correctly, Nabors Industries Ltd. (NYSE:NBR) will be offering a bit more than a 25% premium to par value for the notes.

Comparing the rates Sprint Corporation (NYSE:S) had to pay to what the other four companies are paying highlights the importance of credit quality to borrowing costs. Sprint Corporation (NYSE:S) is paying a much higher coupon rate on its new eight-year than CME Group or Home Depot are paying on 30-year paper.

The article 6 Billion Reasons to Watch Sprint originally appeared on and is written by Russ Krull.

Russ Krull has no position in any stocks mentioned. The Motley Fool recommends Home Depot. It recommends and owns shares of Starbucks.

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