Valero prices; Nabors sells split-rated notes; Valero tightens; Citigroup, AT&T soften

By Cristal Cody

Eureka Springs, Ark., Dec. 2 – Two issuers tapped the primary market on Friday in an otherwise mostly quiet session, sources report.

Valero Energy Partners LP brought a $500 million offering of 4.375% 10-year senior notes on Friday at 99.959 to yield 4.38%.

J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC, PNC Capital Markets LLC, SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments Inc. were the bookrunners.

Nabors Industries Inc. priced $600 million of split-rated notes (Ba2/BBB-/BBB-) at par to yield 5˝% and a spread of 339 basis points over Treasuries.

Primary action is expected to slow to about $15 billion to $20 billion of volume in the week ahead, which is likely the last week of significant issuance for 2016, a source said.

The Markit CDX North American Investment Grade index firmed about 1 bp to close the day at a spread of 73 bps.

Bonds were mixed in secondary trading over the day.

Valero Energy’s notes were seen trading 5 bps tighter in aftermarket trading on Friday.

Citigroup, Inc.’s 2.9% notes due 2021 priced in the previous session traded 1 bp softer on the bid side.

Time Warner Inc.’s new 3.8% notes due 2027 remained tight on Friday.

The 4.125% notes due 2026 of AT&T Inc., which announced plans to acquire Time Warner in October, softened about 1 bp during the session.

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