Entergy brings $650 million offering; Citigroup, Barclays paper soft; credit spreads flat

By Cristal Cody

Tupelo, Miss., June 25 – Entergy Corp. tapped the investment-grade bond market on Thursday with a $650 million offering of seven-year senior notes.

The company priced the 4% notes at 99.859 to yield 4.023%.

In the secondary market, bonds were mixed over the day.

Citigroup Inc.’s 3.3% senior notes due 2025 traded 3 basis points wider during the session.

Barclays plc’s 2.875% notes due 2020 eased 2 bps.

Earlier in the day, H.J. Heinz Co.’s senior notes (Baa3/BBB-/) were mixed.

The Markit CDX North American Investment Grade series 23 index headed out unchanged at a spread of 67 bps.

Entergy prices $650 million

Entergy sold $650 million of 4% seven-year senior notes at 99.859 to yield 4.023% on Thursday, according to a FWP filing with the Securities and Exchange Commission.

The notes due July 15, 2022 (Baa3/BBB-/) priced at a spread of 190 bps plus Treasuries.

The joint bookrunners were BNP Paribas Securities Corp., J.P. Morgan Securities LLC, Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, Barclays, Citigroup Global Markets Inc., KeyBanc Capital Markets Inc. and Mitsubishi UFJ Securities (USA), Inc.

Entergy is a New Orleans-based electric power producer and distributor.

Citigroup weaker

Citigroup’s 3.3% notes due 2025 eased 3 bps to 146 bps bid on Thursday, according to a market source.

Citigroup sold $1.5 billion of the notes (Baa2/A-/A) on April 22 at Treasuries plus 135 bps.

The investment bank is based in New York.

Barclays eases

Barclays’ 2.875% notes due 2020 eased 2 bps to 145 bps bid in secondary trading, a market source said.

Barclays sold $1 billion of the notes (Baa3/BBB/A) on June 1 at Treasuries plus 142 bps.

The financial services company is based in London.

H.J. Heinz mixed

H.J. Heinz’s 3.95% notes due 2025 were wrapped around issuance at 155 bps offered in the secondary market earlier on Thursday, a source said.

The company sold $2 billion of the notes on Tuesday at a spread of Treasuries plus 155 bps.

The 5% notes due 2035 were quoted better at 179 bps offered.

H.J. Heinz brought $1 billion of the 20-year notes on Tuesday at Treasuries plus 185 bps.

The company’s 5.2% long bonds due 2045 eased to 203 bps offered.

H.J. Heinz sold $2 billion of the bonds at 200 bps over Treasuries in the Tuesday sale.

The food processing company is based in Pittsburgh.

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