Primary quiets following deal rush; Citi mixed; Synchrony tightens; Tyson active

By Cristal Cody and Aleesia Forni

Virginia Beach, Aug. 8 – The high-grade primary market was empty on Friday, following Thursday’s onslaught of new issuance.

The session’s roughly $10 billion of supply helped push the week’s total to more than $24 billion.

The figure topped expectations from sources who called for around $15 billion of new paper.

In other news this week, Lipper reported inflows of $139 million into corporate investment-grade funds for the week ended Aug. 6.

The previous week had seen $952 million of inflows.

Investment-grade bond spreads tightened over the day, while new issues ended the week mixed, market sources said on Friday.

The Markit CDX North American Investment Grade series 22 index tightened 3 basis points to a spread of 64 bps.

In the secondary market, Citigroup Inc.’s new paper (Baa2/A-/A) traded flat, while the bank’s 4% notes due 2024 brought in late July are nearly 10 bps wider from issuance, a trader said.

WellPoint, Inc.’s senior notes (Baa2/A-/BBB+) priced in Thursday’s session were mixed in secondary trading, according to a trader.

Synchrony Financial’s notes (//BBB-) sold on Wednesday “traded tighter right off the bat” and remained better on Friday afternoon in the secondary market, a trader said.

Tyson Foods Inc.’s senior notes (Baa3/BBB/BBB) brought on Tuesday continued to trade mostly better as the week closed, according to a trader.

“A lot of that new Tyson equity is trading as well,” the trader said.

Citi flat to wider

Citigroup’s 1.55% senior notes due 2017, priced in a $1.25 billion tranche on Thursday at Treasuries plus 72 bps, were offered over the morning at 72 bps, a trader said.

Citigroup’s 4% subordinated notes due 2024 were offered at 166 bps on Friday, the trader said.

The New York-based bank sold $750 million of the 10-year notes at Treasuries plus 157 bps on July 29.

WellPoint mixed

WellPoint’s 2.25% notes due 2019 traded on Friday at 69 bps offered, a trader said.

The company sold $850 million of the notes on Thursday at Treasuries plus 70 bps.

WellPoint’s tranche of 3.5% notes due 2024 eased to 118 bps bid, 115 bps offered, the trader said.

The company sold $800 million of the notes in Thursday’s offering at Treasuries plus 115 bps.

The company’s 4.65% bonds due 2044 eased to 147 bps bid in the secondary market on Friday.

WellPoint sold $800 million of the bonds at Treasuries plus 145 bps on Thursday.

The tranche of 4.85% bonds due 2054 were seen in Trace activity in the 162 bps to 163 bps area over the day, the trader said.

WellPoint sold $250 million of the bonds at Treasuries plus 165 bps in the previous session.

The health benefits company is based in Indianapolis.

Synchrony tightens

Synchrony Financial’s 3% notes due 2019 traded in the 88 bps offered area on Friday, according to a trader.

The company sold $1.1 billion of the notes on Wednesday at Treasuries plus 140 bps.

Synchrony Financial’s tranche of 3.75% notes due 2021 traded earlier in the day at 148 bps bid, 144 bps offered, the trader said.

The company sold $750 million of the seven-year notes at Treasuries plus 165 bps.

The consumer financial services company is based in Stamford, Conn.

Tyson firms

Tyson Foods’ 3.95% notes due 2024 traded earlier on Friday at 148 bps bid, 133 bps offered, a trader said.

The company sold $1.25 billion of the 10-year notes at a spread of Treasuries plus 150 bps on Tuesday.

Tyson’s 5.15% bonds due 2044 tightened to 182 bps bid, 178 bps offered, according to the trader.

Tyson sold $500 million of the bonds on Tuesday at Treasuries plus 190 bps.

The beef, pork and poultry company is based in Springdale, Ark.

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