Citigroup prices $2 billon floaters; thin volume forecast; credit spreads ease; Key firms

By Cristal Cody

Eureka Springs, Ark., Aug. 19 – Two issuers tapped the investment-grade corporate bond market over Friday’s session.

Citigroup, Inc. priced $2 billion of seven-year floating-rate notes at 99.684 with a coupon of Libor plus 148 basis points on Friday, according to a market source.

The notes (Baa1/BBB+/A) are non-callable for six years.

Citigroup Global Markets Inc. was the bookrunner.

United Parcel Service, Inc. priced a $34.55 million reopening of its floating-rate senior notes due March 15, 2066 at par with a coupon of Libor minus 30 basis points.

Primary action is expected to slow for the remainder of the month.

About $5 billion of volume is forecast for the week ahead with issuance to ramp up following the Labor Day holiday, according to market sources.

The Markit CDX North American Investment Grade index closed the session 1 bp softer at a spread of 71 bps.

In the secondary market, KeyBank NA’s 1.6% senior notes due 2019 traded better at 68 bps offered early Friday, according to a market source.

The notes were seen on Thursday at 72 bps bid, 70 bps offered.

KeyBank priced $500 million of the notes (A3/A-/A-) on Wednesday at a spread of Treasuries plus 75 bps.

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