High-grade primary quiet; GM Financial, Western Gas, Spectra Energy tighten; Kroger softens

By Cristal Cody

Eureka Springs, Ark., Oct. 7 – Investment-grade primary action stayed quiet on Friday with issuers expected to price about $15 billion to $20 billion of bonds in the holiday-shortened week ahead, according to market sources.

In the secondary market, General Motors Financial Co. Inc.’s 4% senior notes due 2026 traded nearly 20 basis points better than issuance.

Western Gas Partners, LP’s 5.45% senior notes 2044 reopened on Thursday firmed about 6 bps from where the notes priced.

Spectra Energy Partners LP’s notes (Baa2/BBB/BBB) priced on Wednesday traded about 2 bps to 4 bps better than issuance on Friday.

Kroger Co.’s senior notes (Baa1/BBB/BBB) traded wrapped around issuance earlier on Friday.

The Markit CDX North American Investment Grade index closed about 1 bp tighter at a spread of 74 bps.

GM Financial tightens

General Motors Financial’s 4% notes due 2026 tightened to 222 bps bid, 219 bps offered, according to a market source.

The company (Ba1/BBB-/BBB-) sold $750 million of the 10-year notes on Oct. 3 at a spread of Treasuries plus 240 bps.

General Motors Financial is the Fort Worth-based finance subsidiary of General Motors Co.

Western Gas better

Western Gas Partners’ 5.45% senior notes due 2044 were quoted in secondary trading on Friday at 274 bps bid, 270 bps offered, a source said.

The company priced a $200 million tap of the notes (Ba1/BBB-/BBB-) on Thursday at Treasuries plus 280 bps.

The Woodlands, Texas-based company owns, develops and operates midstream energy assets in the United States.

Spectra Energy firms

Spectra Energy Partners’ 3.375% notes due 2026 traded on Friday afternoon at 164 bps bid, 162 bps offered in the secondary market, a source said.

The company sold $600 million of the 10-year notes on Wednesday at a spread of 167 bps over Treasuries.

Spectra Energy Partners’ 4.5% notes due 2045 reopened on Wednesday traded at 200 bps bid, 202 bps offered on Friday.

The company priced a $200 million add-on to the bonds at a spread of 202 bps plus Treasuries.

The natural gas transmission and production company is based in Houston.

Kroger eases

Kroger’s 2.65% notes due 2026 eased about 2 bps to trade wrapped around issuance in the secondary market, a source said earlier on Friday.

The grocer sold $750 million of the notes on Sept. 26 at a spread of Treasuries plus 110 bps.

Kroger is a Cincinnati-based grocery retailer.

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