UnitedHealth sells notes; MetLife trades flat to tighter; JPMorgan, Citigroup notes firm

By Cristal Cody

Eureka Springs, Ark., Dec. 15 – Investment-grade bond issuance slowed on Thursday with one new offering priced during the session and little deal volume expected over the rest of the month, according to market sources.

UnitedHealth Group Inc. priced $1.5 billion of notes in two parts during the session.

The company’s 10- and 30-year notes were seen trading flat to 1 basis point tighter on the bid side in the secondary market.

Also in the secondary market, MetLife Global Funding I’s $2 billion of notes (Aa3/AA-) that priced in three tranches on Monday traded flat to about 3 bps better on the bid side.

Earlier, bank and financial paper was seen trading about 1 bp to 2 bps tighter in the secondary market.

JPMorgan Chase & Co.’s 2.972% notes due Jan. 15, 2023 improved about 2 bps but were weaker than where the notes priced at the start of the month.

Citigroup, Inc.’s 2.9% notes due Dec. 7, 2021 that priced on Dec. 1 firmed about 2 bps to trade about 1 bp better than issuance.

The Markit CDX North American Investment Grade index was mostly unchanged at a spread of 69 bps.

UnitedHealth prices

UnitedHealth Group priced $1.5 billion of fixed-rate notes (A3/A+/A-) in two tranches on Thursday on the tight side of guidance, according to a market source.

The company sold $750 million of 3.45% 10-year notes with a spread of 85 bps over Treasuries.

UnitedHealth placed $750 million of 4.2% 30-year notes at a Treasuries plus 105 bps spread.

BofA Merrill Lynch, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were the bookrunners.

The first series of notes has a par call, while the second series of notes has a make-whole call and then a par call, according to a 424B5 filed with the Securities and Exchange Commission.

The 3.45% notes due 2027 traded at 85 bps bid, 83 bps offered in the secondary market.

UnitedHealth’s tranche of 4.2% notes due 2047 were quoted trading at 104 bps bid.

The Minnetonka, Minn.-based diversified health company plans to use the proceeds from the offering to repay commercial paper borrowings and for other general corporate purposes.

MetLife mostly better

MetLife Global Funding I’s 1.75% notes due 2018 traded modestly better at 64 bps bid, 62 bps offered, a market source said.

The company sold $500 million of the two-year notes on Monday at a spread of 65 bps over Treasuries.

MetLife’s 3.45% notes due 2026 traded better on Thursday at 94 bps bid, 92 bps offered.

The $1 billion tranche priced on Monday at a spread of 97 bps over Treasuries.

The issuer is a financing arm of New York City-based insurance and employee benefits company MetLife Inc.

JPMorgan firms

JPMorgan Chase’s 2.972% notes due 2023 traded about 2 bps tighter at 110 bps offered, according to a market source early Thursday.

JPMorgan priced $1.5 billion of the notes (A3/A-) on Dec. 1 at a spread of Treasuries plus 108 bps.

The financial services company is based in New York City.

Citigroup improves

Citigroup’s 2.9% notes due 2021 were seen earlier in the day about 2 bps tighter in secondary trading at 104 bps offered, according to a market source.

Citigroup priced $2.25 billion of the notes (Baa1/BBB+/A) on Dec. 1 at a spread of 105 bps over Treasuries.

The financial services company is based in New York.

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