Wisconsin Power, NStar Electric, AGL among bond issuers; Citigroup, Duke Energy ease

By Cristal Cody

Tupelo, Miss., Nov. 13 – Nearly $4 billion of high-grade bonds priced over the session on Friday, bringing the week’s total issuance to about $34 billion.

Wisconsin Electric Power Co., NStar Electric Co. and AGL Capital Corp. were among the high-grade issuers that tapped the market before the week ended.

Connecticut Light and Power Co. also sold a $50 million tap of its existing 4.15% 30-year first and refunding mortgage bonds on Friday.

In addition, Fannie Mae priced $3 billion of 1.875% five-year benchmark notes at a spread of 19.5 basis points over Treasuries on Friday.

Bonds were mostly weaker in secondary trading over the day.

Citigroup Inc.’s 4.4% subordinated notes due 2027 traded 1 bp softer.

Duke Energy Progress Inc.’s first mortgage bonds (Aa2/A/A+) headed out 2 bps wider.

The Markit CDX North American Investment Grade 25 index widened 2 bps to close on Friday at a spread of 85 bps.

Wisconsin Electric Power sold $250 million of 4.3% 30-year debentures at 99.711 to yield 4.317%, according to an FWP filing on Friday with the Securities and Exchange Commission.

The debentures priced with a spread of 125 bps over Treasuries.

Morgan Stanley & Co. LLC, RBC Capital Markets LLC, BMO Capital Markets Corp. and U.S. Bancorp Investments Inc. were the bookrunners.

Wisconsin Electric Power is a Milwaukee-based subsidiary of WEC Energy Group, Inc.

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