Wells Fargo, Oglethorpe among day’s bond issuers; Wells Fargo firms; Citigroup improves

By Cristal Cody

Eureka Springs, Ark., April 15 – Friday turned into a busy session with new high-grade bond deals priced from Wells Fargo & Co., Oglethorpe Power Corp., Sierra Pacific Power Co. and Nordic Investment Bank, bringing the week’s volume to nearly $24 billion.

Wells Fargo tapped the primary market with a $3 billion offering of 3% 10-year senior notes.

Oglethorpe Power sold $250 million of 4.25% 30-year first mortgage bonds.

Sierra Pacific Power priced $400 million of 2.6% 10-year general and refunding mortgage notes.

Nordic Investment Bank brought to market $500 million of two-year floating-rate global notes.

High-grade issuers are expected to price about $30 billion of bonds in the upcoming week, a source said.

Wells Fargo’s new notes headed out 2 basis points tighter in aftermarket trading.

In other secondary trading, Citigroup Inc.’s 4.6% subordinated notes due 2026 traded 5 bps better after the company reported a drop in first-quarter profit and revenue on Friday.

The Markit CDX North American Investment Grade index ended the day 1 bp weaker at a spread of 80 bps.

Wells Fargo priced $3 billion of 3% 10-year senior notes on Friday at 99.657 to yield 3.04%, according to an FWP filing with the Securities and Exchange Commission.

The notes priced with a spread of 130 bps over Treasuries.

The notes traded 2 bps tighter at 128 bps offered in the secondary market, a trader said.

Wells Fargo Securities, LLC was the bookrunner.

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