Wisconsin Power, NStar Electric, AGL among bond issuers; Citigroup, Duke Energy ease

By Cristal Cody

Tupelo, Miss., Nov. 13 – Nearly $4 billion of high-grade bonds priced over the session on Friday, bringing the week’s total issuance to about $34 billion.

Wisconsin Electric Power Co., NStar Electric Co. and AGL Capital Corp. were among the high-grade issuers that tapped the market before the week ended.

Connecticut Light and Power Co. also sold a $50 million tap of its existing 4.15% 30-year first and refunding mortgage bonds on Friday.

In addition, Fannie Mae priced $3 billion of 1.875% five-year benchmark notes at a spread of 19.5 basis points over Treasuries on Friday.

Bonds were mostly weaker in secondary trading over the day.

Citigroup Inc.’s 4.4% subordinated notes due 2027 traded 1 bp softer.

Duke Energy Progress Inc.’s first mortgage bonds (Aa2/A/A+) headed out 2 bps wider.

The Markit CDX North American Investment Grade 25 index widened 2 bps to close on Friday at a spread of 85 bps.

Wisconsin Electric prices

Wisconsin Electric Power sold $250 million of 4.3% 30-year debentures at 99.711 to yield 4.317%, according to an FWP filing on Friday with the Securities and Exchange Commission.

The debentures priced with a spread of 125 bps over Treasuries.

Morgan Stanley & Co. LLC, RBC Capital Markets LLC, BMO Capital Markets Corp. and U.S. Bancorp Investments Inc. were the bookrunners.

Proceeds will be used to repay short-term debt, to repay a portion of the company’s outstanding 6.25% debentures due on Dec. 1, 2015 and for working capital and other corporate purposes.

Wisconsin Electric Power is a Milwaukee-based subsidiary of WEC Energy Group, Inc.

NStar brings debentures

NStar Electric printed $250 million of 3.25% 10-year debentures at 99.519 to yield 3.307% on Friday, according to an FWP filing with the SEC.

The debentures priced with a spread of 102 bps over Treasuries.

Goldman Sachs & Co., BofA Merrill Lynch, MUFG and Mizuho Securities USA Inc. were the bookrunners.

Proceeds will be used to repay outstanding short-term debt, to fund capital expenditures and for working capital.

NStar Electric is a subsidiary of Boston-based Eversource Energy.

AGL sells 10-year notes

AGL Capital priced $250 million of 3.875% 10-year senior notes at 99.91 to yield 3.886% on Friday, according to an FWP filing with the SEC.

The notes priced with a spread of 160 bps over Treasuries.

MUFG, SunTrust Robinson Humphrey, Inc. Wells Fargo Securities, LLC and Morgan Stanley were the bookrunners.

Proceeds will be used to repay outstanding short-term debt and for general corporate purposes.

AGL Capital is an Atlanta-based subsidiary of energy services holding company AGL Resources, Inc.

Fannie Mae prices $3 billion

Fannie Mae announced that it sold $3 billion of 1.875% five-year benchmark notes at 99.991 to yield 1.877% on Friday.

The notes due Dec. 28, 2020 priced with a spread of 19.5 bps over Treasuries.

Barclays, Citigroup Global Markets Inc. and Nomura Securities International, Inc. were the lead managers.

Fannie Mae is a Washington, D.C.-based mortgage credit provider.

Citi eases

In the secondary market, Citigroup’s 4.4% subordinated notes due 2027 were seen going out 1 bp weaker at 229 bps bid, a market source said.

Citigroup sold $1.5 billion of the notes (Baa3/BBB+/A-) in a reopening on Oct. 23 at 233 bps over Treasuries. The company originally sold $2 billion of the notes on Sept. 23 at Treasuries plus 235 bps.

The financial services company is based in New York.

Duke Energy softens

Duke Energy Progress’ 3.25% notes due 2025 eased 2 bps to 90 bps bid in secondary trading on Friday afternoon, according to a market source.

The company sold $500 million of the notes on Aug. 10 at a spread of Treasuries plus 105 bps.

Duke Energy’s 4.2% bonds due 2045 were 2 bps weaker at 121 bps bid.

Duke Energy priced $700 million of the bonds in the Aug. 10 sale at Treasuries plus 130 bps.

The Raleigh, N.C.-based company is an electricity distributor in North Carolina and South Carolina.

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