Southwestern Public Service prices; credit spreads tighten; Barclays tightens; Google firms

By Cristal Cody

Eureka Springs, Ark., Aug. 5 – Southwestern Public Service Co. tapped the high-grade primary market on Friday, capping off a week of strong issuance.

Southwestern Public Service sold $300 million of 30-year first mortgage bonds during the session.

The Markit CDX North American Investment Grade index closed 3 basis points tighter at a spread of 70 bps.

In the secondary market, Barclays plc’s notes priced on Wednesday traded about 8 bps to 10 bps better than issuance.

Google holding company Alphabet Inc.’s 1.998% notes due 2026 improved about 1 bp earlier on Friday.

Southwestern Public prices

Southwestern Public Service priced $300 million of 3.4% 30-year first mortgage bonds at 99.831 to yield 3.409%, according to an FWP filing with the Securities and Exchange Commission on Friday.

The series 4 bonds (A2/A/A-) priced with a spread of 110 bps over Treasuries.

KeyBanc Capital Markets Inc., Mizuho Securities USA Inc., US Bancorp Investments Inc. and CIBC World Markets Corp. were the bookrunners.

Proceeds will be used to repay short-term borrowings, to fund about $150 million of the upcoming maturity of $200 million principal outstanding series E 5.6% senior notes due Oct. 1, 2016 and for general corporate purposes.

Amarillo, Texas-based Southwestern Public Service generates, purchases, distributes and sells electricity in portions of Texas and New Mexico.

Barclays firms

Barclays’ 3.2% notes due 2021 were quoted early Friday at 207 bps offered in the secondary market, a source said.

Barclays sold $1.35 billion of the notes on Wednesday at a spread of 215 bps plus Treasuries.

Barclays’ reopened 5.2% subordinated notes due 2026 were 10 bps better than issuance at 320 bps offered in secondary trading, according to the market source.

The company priced an $800 million add-on to the notes on Wednesday at a spread of 330 bps plus Treasuries.

The financial services company is based in London.

Google improves

Alphabet’s 1.998% notes due 2026 traded about 1 bp tighter at 65 bps offered, a source said early Friday.

Alphabet priced $2 billion of the notes (Aa2/AA/) on Tuesday at a spread of 68 bps plus Treasuries.

Mountain View, Calif.-based Alphabet is the holding company for Google and other subsidiaries.

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