Citigroup, Fluor price; Ares Capital upsizes; AT&T, Verizon notes widen

By Aleesia Forni and Cristal Cody

Virginia Beach, Nov. 18 – Issuance in the investment-grade bond market rolled on during Tuesday’s session.

Citigroup Inc. priced a $2 billion issue of three-year senior notes in fixed- and floating-rate tranches, and Ares Capital Corp. sold an upsized $400 million offering of notes due 2020.

The primary also saw Fluor Corp. bring $500 million of notes due 2024, while Oceaneering International Inc. issued $500 million of 10-year senior notes.

Retail Opportunity Investments Partnership LP and Entergy Louisiana LLC were each in the market with $250 million offerings.

Johnson & Johnson and Parker-Hannifin Corp. also came to market Tuesday, though details of the sales were unavailable at press time.

The session saw $7.4 billion of new issuance, pushing the week’s total to nearly $16 billion, more than halfway to what was predicted to be around a $30 billion week.

Investment-grade credit spreads and bonds headed out mostly weaker, according to market sources.

In the secondary market, AT&T Inc.’s 3.9% notes due 2024 have widened 20 basis points since Friday, a market source said.

Verizon Communications Inc.’s 4.15% senior notes due 2024 traded more than 10 bps weaker, the source said.

Apple Inc.’s 3.45% notes due 2024 remained mostly flat, according to a market source.

Bank and financial paper was mostly weaker in the secondary market, with Bank of America Corp.’s 4% notes due 2024 quoted 4 bps wider.

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