WestJet Airlines, Westar Energy, Sovran tap market; Emera notes mixed; Under Armour eases

By Cristal Cody

Eureka Springs, Ark., June 13 – Investment-grade supply is expected to stay light over the week with investors and traders focused on central bank meetings, including the outcome of the Federal Reserve’s two-day policy meeting that ends on Wednesday.

Monday’s primary action included deals from WestJet Airlines Ltd., Westar Energy, Inc. and Sovran Acquisition LP.

WestJet Airlines priced $400 million of 3.5% senior notes due 2021 on Monday with a spread of 240 bps over Treasuries, according to a market source and a company news release.

The notes (Baa2/BBB-/) were talked at Treasuries plus 250 bps, plus or minus 10 bps.

Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC were the bookrunners.

WestJet intends to use the proceeds for general corporate purposes, which includes the purchase of aircraft.

Westar Energy sold $350 million of 2.55% 10-year green first mortgage bonds (A2/A) with a spread of 95 bps over Treasuries on Monday, according to a market source.

Sovran Acquisition sold $600 million of 10-year senior notes.

In the secondary market, Emera US Finance LP’s senior notes priced on Thursday were unchanged to modestly softer in late-afternoon trading.

Under Armour, Inc.’s new 3.25% senior notes due 2026 edged wider over the day.

The Markit CDX North American Investment Grade index closed 3 basis points softer at a spread of 82 bps.

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