WPP Group Finance sells $500 million of notes; Goldman Sachs paper widens; AT&T, Verizon firm

By Cristal Cody and Sheri Kasprzak

New York, Nov. 2 - In a fairly light session for primary action, WPP Group Finance 2010 priced $500 million of senior notes at a spread of Treasuries plus 280 basis points, said a market source familiar with the offering.

The notes (Baa3/BBB/) were sold under Rule 144A in a private placement.

The 4.75% notes are due Nov. 21, 2021 and were priced at 99.567 to yield 4.805%.

The securities feature a make-whole call at Treasuries plus 40 bps.

Barclays Capital Inc., Bank of America Merrill Lynch, HSBC Securities (USA) LLC and RBS Securities Inc. were the joint bookrunners.

Proceeds will be used to refinance existing debt.

WPP Group Finance 2010 is the financing arm of WPP plc, which is a Dublin-based advertising firm.

EQT will bring $750 million

Looking ahead, EQT Corp. plans to come to market with $750 million of senior notes, said a market source familiar with the deal and a form 424B5 filed with the Securities and Exchange Commission.

The notes (Baa2/BBB/BBB) will be sold through joint bookrunners Barclays Capital, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC.

The notes are due in 2021.

Located in Pittsburgh, EQT distributes and sells natural gas to business, residential and industrial customers.

Corporates tighten

Corporate bonds traded better, though the day was quiet, sources said. The Markit CDX Series 17 North American Investment Grade index firmed 2 basis points to a spread of 125 bps.

"It's been pretty slow," a trader said.

Bank and financial paper recovered some gains lost the previous day, trading 5 bps to 15 bps better, a trader said.

Bank of America Corp.'s notes firmed 10 bps, while Goldman Sachs Group, Inc.'s 10-year notes it reopened a week ago traded wider.

Bonds in the telecommunications sector firmed about 5 bps.

AT&T, Inc.'s bonds, which had widened the previous day along with other corporate debt, traded tighter on Wednesday.

Verizon Communications Inc.'s new 10-year notes traded about 5 bps better.

Overall trading volume climbed to more than $12 billion.

Treasuries ended the day mixed. The 10-year note yield fell 1 bp to 1.98%. The 30-year bond yield rose 1 bp to 3.01%.

Bank of America better

Bank of America's 5% notes due 2021 were quoted 10 bps better in Wednesday's trading at 400 bps bid, 390 bps offered, a trader said.

The notes were sold on May 10 at a spread of 185 bps over Treasuries.

The financial services company is based in Charlotte, N.C.

Goldman wider

Goldman's 5.25% senior notes due 2021 were quoted at 322 bps bid, 312 bps offered in the secondary market on Wednesday.

Goldman reopened the notes on Oct. 25 in a $1 billion offering priced a spread of 295 bps over Treasuries.

The financial services company is based in New York.

AT&T stronger

AT&T's bonds firmed along with the telecom sector on Wednesday, a trader said. The 3.875% notes due 2021 traded 5 bps tighter at 127 bps bid, 122 bps offered.

The notes were quoted a month ago on Oct. 3 at 165 bps bid, 158 bps offered.

The telecommunications company is based in Dallas.

Verizon stronger

Verizon's 3.5% notes due 2021 firmed to 126 bps bid, 121 bps offered in the secondary market, about 5 bps tighter than Tuesday's trading, a source said.

Verizon sold $1.75 billion of the 10-year notes (A3/A-/A) on Oct. 27 at 120 bps over Treasuries.

The broadband and telecommunications company is based in New York.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.