Goldman Sachs sells floaters; WGL brings add-on; bank paper mostly flat; telecom stable

By Aleesia Forni and Cristal Cody

Virginia Beach, Dec. 11 – Goldman Sachs Group Inc. priced an offering of senior notes on Thursday during another quiet session for investment-grade bonds.

The financial services company sold a $1 billion offering of three-year floating-rate notes in line with initial price thoughts.

The session also saw WGL Holdings Inc. bring to market a $25 million add-on to its existing senior notes due Nov. 1, 2044.

The two new deals priced during the session bring the week’s total new issuance to roughly $7 billion.

With a quiet session expected for Friday, the week’s total supply will likely fall short of what was expected to be around $15 billion of new issuance.

“We’re probably wrapped up for the week,” one market source said.

Investment-grade bonds continued to leak wider on Thursday, according to market sources.

The Markit CDX North American Investment Grade series 23 index eased 1 basis point to a spread of 69 bps.

In the secondary market, Goldman’s existing paper traded flat to 1 bp softer following the company’s new deal, a source said.

JPMorgan Chase & Co.’s 3.625% senior notes due 2024 were mostly flat on the day, a market source said.

Citigroup Inc.’s 3.75% notes due 2024 were quoted 4 bps wider.

In other secondary trading, AT&T Inc.’s 3.9% notes due 2024 were unchanged over the session, according to a market source.

Verizon Communications Inc.’s 3.5% notes due 2024 saw little movement, a source said.

Goldman brings floaters

Goldman Sachs Group priced $1 billion of three-year floating-rate senior notes (Baa1/A-/A) on Thursday at par to yield Libor plus 80 bps, a market source said.

The notes sold in line with guidance.

Goldman Sachs & Co. was the bookrunner.

Proceeds will be used for general corporate purposes.

The financial services company is based in New York City.

WGL add-on

WGL Holdings sold a $25 million add-on to its existing 4.6% senior notes (A3/A/A/) due Nov. 1, 2044 on Thursday at Treasuries plus 189.4 bps, according to an FWP filed with the Securities and Exchange Commission.

The notes priced at 97.612 to yield 4.75%.

The original $125 million of 4.6% 30-year bonds sold at 99.226 to yield 4.648%, or Treasuries plus 165 bps, on Oct. 22.

The bookrunners were Wells Fargo Securities LLC, BB&T Capital Markets and TD Securities.

Proceeds will be used for general corporate purposes.

WGL is a Washington, D.C.-based utility.

Goldman mostly flat

Goldman Sachs’ existing 3.85% notes due 2024 (Baa1/A-/A) traded flat to 1 bp weaker at 140 bps bid on Thursday, according to a market source.

Goldman Sachs sold $2.25 billion of the notes on June 30 at Treasuries plus 135 bps.

Citigroup eases

Citigroup’s 3.75% notes due 2024 (Baa2/A-/A) headed out 4 bps weaker on the day at 133 bps offered, a market source said.

The bank sold $1.25 billion of the 10-year notes on June 9 at Treasuries plus 115 bps.

Citigroup is based in New York City.

JPMorgan stable

JPMorgan’s 3.625% senior notes due 2024 (A3/A/A+) were quoted unchanged to 1 bp softer at 119 bps bid on Thursday, according to a market source.

JPMorgan sold $2 billion of the notes on May 6, 2014 at 110 bps plus Treasuries.

The financial services company is based in New York City.

AT&T steady

In late afternoon trading, AT&T’s 3.9% notes due 2024 (A3/A-/A) were unchanged at 139 bps bid, a market source said.

AT&T sold $1 billion of the notes on March 5, 2014 at a spread of Treasuries plus 125 bps.

The telecommunications company is based in Dallas.

Verizon stable

Verizon’s 3.5% notes due 2024 (Baa1/BBB+/A-) were flat during the session at 148 bps bid, according to a market source.

Verizon sold $2.5 billion of the notes at Treasuries plus 135 bps on Oct. 22.

The telecommunications company is based in New York City.

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