Goldman Sachs sells floaters; WGL brings add-on; bank paper mostly flat; telecom stable

By Aleesia Forni and Cristal Cody

Virginia Beach, Dec. 11 – Goldman Sachs Group Inc. priced an offering of senior notes on Thursday during another quiet session for investment-grade bonds.

The company sold a $1 billion offering of three-year floating-rate notes in line with initial price thoughts.

The session also saw WGL Holdings Inc. price a $25 million add-on to its existing senior notes due Nov. 1, 2044.

The session’s two new deals bring the week’s total new issuance to roughly $7 billion.

With a quiet session expected for Friday, the week’s total supply will likely fall short of what was expected to be around $15 billion of new issuance.

Investment-grade bonds continued to leak wider on Thursday, according to market sources.

The Markit CDX North American Investment Grade series 23 index eased 1 basis point to a spread of 69 bps.

In the secondary market, Goldman’s existing paper traded flat to 1 bp softer following the company’s new deal, a source said.

JPMorgan Chase & Co.’s 3.625% senior notes due 2024 were mostly flat on the day, a market source said.

Citigroup Inc.’s 3.75% notes due 2024 were quoted 4 bps wider.

In other secondary trading, AT&T Inc.’s 3.9% notes due 2024 were unchanged over the session, according to a market source.

Verizon Communications Inc.’s 3.5% notes due 2024 saw little movement, a source said.

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