Apple, Canadian National Railway in primary; Verizon, Citigroup mixed; credit spreads ease

By Cristal Cody

Eureka Springs, Ark., July 28 – Two high-grade bond issuers planned deals for Thursday’s session.

Apple Inc. was expected to price fixed- and floating-rate senior notes (Aa1/AA+).

Canadian National Railway Co. tapped the primary market with a $650 million sale of long bonds.

The Markit CDX North American Investment Grade index ended the day less than 1 basis point softer at a spread of 74 bps.

Apple’s existing notes traded mostly unchanged in the secondary market on Thursday.

Verizon Communications Inc.’s senior notes (Baa1//A-) that priced on Wednesday traded flat to modestly tighter earlier in the day.

Citigroup, Inc.’s new 2.35% notes due 2021 were unchanged to 1 bp softer in earlier secondary trading.

Canadian National prices

Canadian National Railway priced $650 million of 3.2% 30-year senior notes on Thursday at 98.914 to yield 3.257%, according to an FWP filing with the Securities and Exchange Commission.

The notes (A2/A/) came at a spread of 102 bps over Treasuries.

BofA Merrill Lynch, RBC Capital Markets Corp. and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be used for general corporate purposes.

The railway transportation company is based in Montreal.

Verizon mixed

Verizon’s 2.625% notes due 2026 traded wrapped around issuance in the secondary market earlier in the session, a source said.

Verizon sold $2.25 billion of the 10-year notes on Wednesday at Treasuries plus 115 bps.

The company’s 4.125% notes due 2046 were seen in early secondary trading at 188 bps offered.

The long bonds priced on Wednesday in a $1.5 billion tranche at 190 bps over Treasuries.

Verizon is a New York City-based telecommunications company.

Citigroup flat to softer

Citigroup’s 2.35% notes due 2021 traded flat to 1 bp softer early Thursday at 124 bps offered, according to a market source.

Citigroup sold $1.75 billion of the notes (Baa1/BBB+/A) on Tuesday at a spread of 123 bps over Treasuries.

The financial services company is based in New York.

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