Morning Commentary: Western Gas plans add-on; Spectra Energy notes firm; credit spreads flat

By Cristal Cody

Eureka Springs, Ark., Oct. 6 – Western Gas Partners, LP is in the high-grade bond deal pipeline with an add-on to its 5.45% senior notes due April 1, 2044, while Spectra Energy Partners LP’s reopened 4.5% notes due 2045 traded about 3 basis points better early Thursday.

The Markit CDX North American Investment Grade index opened the session mostly unchanged at a spread of 75 bps.

The three-month Libor yield was steady at 86 bps over the morning.

High-grade secondary trading volume rose to $18.67 billion on Wednesday, compared to $18.1 billion on Tuesday and $12.4 billion on Monday, according to Trace.

Spectra Energy firms

Spectra Energy Partners’ 4.5% notes due 2045 that were reopened on Wednesday firmed to 199 bps offered in secondary trading, according to a market source.

Spectra Energy Partners priced a $200 million add-on to the bonds at a spread of 202 bps over Treasuries.

The company originally sold $500 million of the bonds on March 12, 2015. The total outstanding now is $700 million.

The natural gas transmission and production company is based in Houston.

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