AT&T reopens floaters; ING mixed; Southern California Edison eases; Goldman mostly unchanged

By Cristal Cody

Tupelo, Miss., March 24 – AT&T Inc. priced a $300 million add-on to its thee-year floating-rate notes on Friday as the sole reported issuer in the high-grade primary market.

Issuance slowed late in the week as focus shifted to whether healthcare reform would pass a House vote.

Deal action is expected to pick up in the week ahead from a backlog of issuers that stayed to the sidelines this week and from issuers wanting to price ahead of the Easter holiday, market sources said.

About $25 billion to $30 billion of supply is expected in the upcoming week.

The Markit CDX North American Investment Grade index tightened about 1 basis point to close on Friday at a spread of 67 bps.

In the secondary market, ING Groep NV’s $4 billion three-part offering of senior notes (Baa1/A-/A+) priced on Tuesday were mixed.

Southern California Edison Co.’s 4% series 2017A first and refunding mortgage bonds April 1, 2047 brought to market on Tuesday traded 3 bps weaker.

Goldman Sachs Group Inc.’s $2.5 billion two-part offering of notes (A3/A/) placed on Wednesday traded mostly flat.

AT&T sells add-on

AT&T priced a $300 million add-on to its three-year floating-rate global notes (Baa1/BBB+/A-) at par to yield Libor plus 65 bps on Friday, according to an FWP filing with the Securities and Exchange Commission.

J.P. Morgan Securities LLC was the bookrunner.

AT&T sold $500 million of the floaters on Thursday at par to yield Libor plus 65 bps. The total outstanding now is $800 million.

Proceeds will be used for general corporate purposes.

AT&T is a Dallas-based telecommunications company.

ING mixed

ING Groep’s 3.15% notes due March 29, 2022 were flat on Friday at 125 bps bid, 124 bps offered, according to a market source.

ING sold $1.5 billion of the notes on Tuesday at a spread of Treasuries plus 125 bps.

ING’s 3.95% notes due March 29, 2027 softened to 158 bps bid, 156 bps offered in the secondary market.

The company priced $1.5 billion of the 10-year notes at a Treasuries plus 155 bps spread.

The global financial institution is based in Amsterdam.

Southern Edison eases

Southern California Edison’s 4% bonds April 1, 2047 traded softer on Friday at 98 bps bid, 95 bps offered, a market source said.

The company priced $700 million of the 30-year bonds (Aa3/A/A+) on Tuesday at a spread of 95 bps over Treasuries.

Southern California Edison is an electric utility company based in Rosemead, Calif.

Goldman Sachs steady

Goldman Sachs Group’s 2.6% notes due Dec. 27, 2020 traded on Friday at 110 bps bid, 108 bps offered, a market source said.

Goldman Sachs priced $1.75 billion of the notes at a spread of 110 bps over Treasuries.

Goldman Sachs Group is a New York-based banking, securities and investment management company.

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