Emera to price up to $3.8 billion; Aetna mostly better; Citigroup paper firms; JPMorgan mixed

By Cristal Cody

Eureka Springs, Ark., June 3 – Investment-grade primary action slowed on Friday following more than $35 billion of issuance over the week.

Looking ahead, market sources predict about $20 billion to $25 billion of supply for the week ahead.

Emera Inc. is expected to price $3.4 billion to $3.8 billion of debt during the week.

The Markit CDX North American Investment Grade index ended the day mostly unchanged at a spread of 78 basis points.

In the secondary market, Aetna Inc.’s eight tranches of senior notes (Baa2/A/A-) priced on Thursday traded about 1 bp to 6 bps tighter, with the exception of the 10-year slice.

Citigroup Inc.’s 2.7% notes due 2021 reopened on Thursday traded about 3 bps better on Friday.

JPMorgan Chase & Co.’s senior global notes (A3/A-/A+) priced on Tuesday traded flat to modestly softer in the secondary market over the afternoon.

Emera to price

Emera is expected to price $3.4 billion to $3.8 billion of debt in the week ahead, according to a market source.

The company held investor calls on Thursday and Friday.

The deal is expected to include senior notes (Baa3/BBB/) and subordinated notes (Baa2/BBB-/).

J.P. Morgan Securities LLC and Scotia Capital (USA) Inc. are the lead managers.

Proceeds from the offerings will be used to help finance the company’s acquisition of TECO Energy, Inc.

The notes issued by subsidiary Emera US Finance LP and will be fully and unconditionally guaranteed by Emera and Emera U.S. Holdings Inc.

The parent company also plans to price one or more series of Canadian dollar-denominated senior notes to raise up to C$6.6 billion to help fund the acquisition.

Emera US Finance is a financing arm of Emera, a Halifax, N.S.-based electric and gas utility.

Aetna mixed

Aetna’s 3.2% notes due 2026 were quoted trading on Friday slightly weaker at 146 bps bid, 144 bps offered, according to a market source.

Aetna sold $2.8 billion of the 10-year notes on Thursday at a spread of 145 bps over Treasuries.

The company’s tranche of 4.375% notes due 2046 firmed to 179 bps bid, 176 bps offered in secondary trading over the day.

Aetna sold $2.4 billion of the bonds in Thursday’s offering at 180 bps over Treasuries.

The diversified health-care benefits company is based in Hartford, Conn.

Citigroup firms

Citigroup’s 2.7% notes due 2021 reopened on Thursday traded about 3 bps better on Friday at 122 bps bid, 120 bps offered, a market source said.

Citigroup priced a $1 billion add-on to the five-year notes (Baa1/BBB+/A) at a spread of 125 bps over Treasuries. The notes originally priced in a $1.5 billion tranche on March 22 at 133 bps over Treasuries.

The financial services company is based in New York.

JPMorgan flat to softer

JPMorgan’s tranche of 2.4% notes due 2021 were mostly flat at 107 bps bid, 105 bps offered on Friday, a market source said.

The notes priced in a $1.5 billion offering on Tuesday at a spread of Treasuries plus 107 bps.

JPMorgan’s 3.2% notes due 2026 traded on Friday afternoon modestly softer at 138 bps bid, 135 bps offered.

JPMorgan sold $1.75 billion of the notes in the offering on Tuesday at a spread of 137 bps over Treasuries.

The financial services company is based in New York.

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