Goldman reopens notes as issuers hold off until May; Goldman, AT&T, Express Scripts firmer

By Andrea Heisinger and Cristal Cody

New York, April 28 - Goldman Sachs Group Inc. had the only new bond in the high-grade market on Thursday as the financial giant reopened some notes in a quick sale.

The reopened 3.625% paper due 2016 priced on Feb. 2. There was $1.25 billion added to the original issue, bringing the total to $3.75 billion.

Terms were also given for the $2 billion sale of three-year floaters done late Wednesday by JPMorgan Chase & Co.

The volume coming into the primary was "about as much as expected," said a source who wasn't in on the day's one sale.

One syndicate source said that a couple of potential issuers instead opted to wait for the coming week.

"I don't think it was the market [tone]," he said.

Issuance is expected to pick up at the top of May following a mostly quiet April full of earnings, volatility and holidays.

Overall investment-grade Trace volume rose more than 10% to about $13.5 billion, a market source said.

Goldman's notes tightened 4 bps to 6 bps in trading, while other bank bonds "are trading 3 to 5 better," a trader said.

AT&T Inc.'s new bonds traded 1 bp better, according to a trader. "It's definitely pretty active."

Bonds in the oil and gas sector traded about 2 bps better, a trader said.

Express Scripts, Inc.'s five-year notes also firmed about 4 bps in trading.

The Markit CDX Series 14 North American investment-grade index firmed 2 bps to a spread of 90 bps, according to Markit Group Ltd.

Treasuries made gains sending yields down after the government's weak auction of $29 billion of seven-year notes. The 10-year note yield dropped 4 bass points to 3.31%. The 30-year bond yield fell 4 bps to 4.41%.

Goldman's reopened 5-years

Goldman Sachs reopened its issue of 3.625% notes due 2016 to add $1.25 billion, said a market source away from the sale.

The notes (A1/A/A+) sold at a spread of 156 bps over Treasuries.

Total issuance is $3.75 billion, including $2.5 billion sold on Feb. 2 at 158 bps.

Goldman Sachs & Co. was bookrunner.

In secondary trading, the notes firmed to 150 bps, a trader said.

Another trader saw the notes at 152 bps bid, 150 bps offered.

The financial services company is based in New York City.

JPMorgan gives terms

JPMorgan Chase gave terms for its $2 billion of three-year senior medium-term floating-rate notes (Aa3/A+/AA-) priced at par to yield Libor plus 75 basis points late on Wednesday, according to a 424B2 filing with the Securities and Exchange Commission.

The bookrunner was J.P. Morgan Securities LLC.

The financial services company is based in New York City.

AT&T firms

AT&T's 4.45% 10-year notes, the most active bond in trading on Wednesday, continued to tighten on Thursday, a trader said.

AT&T sold $1.75 billion of 2.95% five-year notes at a spread of Treasuries plus 97 bps on Tuesday. The notes firmed on Thursday to 91 bps bid, 88 bps offered.

A second tranche of $1.25 billion of 4.45% notes due 2021 priced at 115 bps over Treasuries also tightened.

"The 10-years are 109, 108," the trader said.

The telecommunications company is based in Dallas.

Express Scripts tightens

The deal sold the previous day from Express Scripts firmed in the secondary market, a trader said.

The company sold $1.5 billion of 3.125% five-year senior notes (Baa3/BBB/BBB) to yield 118 bps over Treasuries.

The notes traded late Thursday afternoon at 114 bps bid, 111 bps offered.

The pharmacy benefit management company is based in St. Louis.

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