Primary action quiets; Apple improves; Verizon mixed; Citi firms; credit spreads tighten

By Cristal Cody

Eureka Springs, Ark., July 29 – High-grade primary issuance took a break on Friday following Apple Inc.’s $7 billion offering in the previous session.

About $25 billion to $30 billion of supply is forecast for the week ahead, according to a market source.

Apple’s new and existing paper (Aa1/AA+/) traded modestly better on Friday.

The company’s 2.45% notes due 2026 firmed to 97 basis points bid, 95 bps offered, according to a market source.

Apple sold $2.25 billion of the notes on Thursday at a spread of 98 bps over Treasuries.

Apple’s 3.25% notes due 2026 firmed 1 bp to 95 bps bid.

The company sold $1.25 billion of the notes in a March 17 add-on at Treasuries plus 100 bps. Apple originally priced $2 billion of the notes on Feb. 16 at 150 bps plus Treasuries.

Verizon Communications Inc.’s $6.15 billion of senior notes (Baa1//A-), which priced in five tranches on Wednesday, were mixed in the secondary market on Friday, and its existing bonds were unchanged to 5 bps better.

Citigroup, Inc.’s new 2.35% notes due 2021 improved on Friday to 122 bps bid, 120 bps offered, according to a market source.

Citigroup sold $1.75 billion of the notes (Baa1/BBB+/A) on Tuesday at a spread of 123 bps over Treasuries.

Credit spreads firmed over Friday’s session. The Markit CDX North American Investment Grade index closed about 1½ bps tighter at a spread of 73 bps.

Apple improves

Apple’s 2.45% notes due 2026 firmed to 97 bps bid, 95 bps offered on Friday, according to a market source.

Apple sold $2.25 billion of the notes on Thursday at a spread of 98 bps over Treasuries.

Apple’s 3.25% notes due 2026, originally priced in February, firmed 1 bp to 95 bps bid.

The company sold $1.25 billion of the notes in a March 17 add-on at Treasuries plus 100 bps. Apple originally priced $2 billion of the notes on Feb. 16 at 150 bps plus Treasuries.

The computer and mobile communications device company is based in Cupertino, Calif.

Verizon mixed

Verizon’s 2.625% notes due 2026 headed out softer at 116 bps bid, 114 bps offered in the secondary market, a source said.

Verizon sold $2.25 billion of the 10-year notes on Wednesday at Treasuries plus 115 bps.

The company’s 4.125% notes due 2046 traded on Friday afternoon at 190 bps bid, 188 bps offered.

Verizon sold $1.5 billion of the bonds in Wednesday’s sale at 190 bps over Treasuries.

The telecommunications company is based in New York City.

Citigroup firms

Citigroup’s 2.35% notes due 2021 improved on Friday to 122 bps bid, 120 bps offered, according to a market source.

Citigroup sold $1.75 billion of the notes (Baa1/BBB+/A) on Tuesday at a spread of 123 bps over Treasuries.

The financial services company is based in New York.

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