Suncor Energy prices lone new issue; Citigroup flat; Verizon, AT&T improve

By Aleesia Forni and Cristal Cody

Virginia Beach, Nov. 20 – Suncor Energy Inc. issued an upsized $750 million 10-year offering of senior notes on Thursday during a mostly quiet session for investment-grade bonds.

Most potential issuers stood aside on Thursday, as an $8 billion bond from China-based Alibaba Group Holding Ltd. took center stage.

In the preferred space, Public Storage launched and priced a $175 million sale of 5.875% series A cumulative perpetual preferreds.

The investment-grade bond market has seen more than $23 billion of new issuance so far this week, falling short of predictions for around $30 billion of supply.

Suncor Energy also tapped the Canadian high-grade market on Thursday with a C$750 million offering of 3.1% seven-year notes, according to an informed source.

Investment-grade bonds were flat to mostly better in the secondary market, sources said.

The Markit CDX North American Investment Grade series 23 index firmed 1 basis point to a spread of 66 bps.

Bank and financial paper traded mostly unchanged, according to a market source.

Citigroup Inc.’s 3.75% notes due 2024 headed out flat on the day, while JPMorgan Chase & Co.’s 3.625% senior notes due 2024 firmed 1 bp.

In the telecom sector, Verizon Communications Inc.’s 4.15% senior notes due 2024 came in 10 bps in secondary trading, a source said.

AT&T Inc.’s 3.9% notes due 2024 traded 3 bps better, a source said.

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