Emera to price up to $3.8 billion; Aetna mostly better; Citi paper firms; JPMorgan mixed

By Cristal Cody

Eureka Springs, Ark., June 3 – Investment-grade primary action slowed on Friday following more than $35 billion of issuance over the week.

Looking ahead, market sources predict about $20 billion to $25 billion of supply for the week ahead.

Emera Inc. is expected to price $3.4 billion to $3.8 billion of debt in the week ahead, according to a market source.

The company held investor calls on Thursday and Friday.

The deal is expected to include senior notes (Baa3/BBB/) and subordinated notes (Baa2/BBB-/).

J.P. Morgan Securities LLC and Scotia Capital (USA) Inc. are the lead managers.

Proceeds from the offerings will be used to help finance the company’s acquisition of TECO Energy, Inc.

The company also plans to price one or more series of Canadian dollar-denominated senior notes to raise up to C$6.6 billion to help fund the acquisition.

The Markit CDX North American Investment Grade index ended the day mostly unchanged at a spread of 78 basis points.

In the secondary market, Aetna Inc.’s eight tranches of senior notes (Baa2/A/A-) priced on Thursday traded about 1 bp to 6 bps tighter, with the exception of the 10-year slice.

Citigroup Inc.’s 2.7% notes due 2021 reopened on Thursday traded about 3 bps better on Friday.

JPMorgan Chase & Co.’s senior global notes (A3/A-/A+) priced on Tuesday traded flat to modestly softer in the secondary market over the afternoon.

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