Amerisource wows with US$9bn book for US$1bn deal

By Danielle Robinson

NEW YORK, Feb 17 (IFR) - AmerisourceBergen priced its US$1bn 10- and 30-year bond offering about 15bp inside its outstanding debt and locked in the tightest levels achieved by a corporate bond issuer this year, after attracting US$9bn of orders.

At a spread of 117bp on a US$500m 10-year and 152bp on a US$500m 30-year, the pharmaceutical wholesaler priced its deal with a new issue concession of negative 15bp.

No other corporate has come close to getting such aggressive pricing, and its efforts have pushed the average new issue concession into negative territory for the first time this year, to negative 2bp.

"This deal shows how scarcity value and strong technicals can reprice this market tighter," said one portfolio manager.

Fund managers have been seeing consistent inflows in February, as non-US accounts add to the demand for high quality corporate bonds.

In a rarely seen move, Amerisource revised its official guidance tighter and then priced at the tight end of that final range, giving it a full 33bp of tightening from IPTs to launch.

The proceeds are part of permanent financing for its US$2.5bn cash purchase of Idaho-based MWI Veterinary Supply (NasdaqGS: MWIV - news) , a wholesaler of animal health products.

Ryder Systems was also able to price a deal tighter than secondaries, on a day that four borrowers in all raised US$3.25bn.

AMERISOURCEBERGEN CORP

AmerisourceBergen Corp (ABC (HKSE: 1288-OL.HK - news) ), Baa2/A-/A-, announced a US$ benchmark SEC registered 2-part senior unsecured offering that includes a 10-year (3/02/25) and 30-year (3/01/45). The active bookrunners include BAML and WFS. The notes contain a MWC, a 3mo par call on the 10yr tranche and a 6mo par call on the 30yr tranche. Special Redemption: At 101% If acquisition does not close prior to May 15, 2015. Use of Proceeds Merger Financing. Settle: 2/20/15.

IPTs: 10yr T+150bp area, 30yr T+185bp area

PRICE GUIDANCE: 10yr T+130bp area, 30yr T+165bp area. Area is +/- 5bp.

FINAL GUIDANCE: 10yr at T+120bp area, US$ 30yr at T+155bp area. Area is +/- 3bp.

LAUNCH: US$1bn 2-part. US$500m 10yr at T+117bp, US$500m 30yr at T+152bp.

PRICED: US$1bn 2-part.

- US$500m 3.25% 10yr (3/01/25). At 99.465, yld 3.313%. T+117bp. MWC+20bp. 1st pay: 9/01/15.

- US$500m 4.25% 30yr (3/01/45). At 99.813, yld 4.261%. T+152bp. MWC+25bp. 1st pay: 9/01/15.

BOOK: US$9bn

NICS: 10yr: neg 15bp.

30yr: neg 15bp (10s/30s curve = 35bp)

COMPS:

3.4% 5/15/24 T+130bp, G+132bp

RYDER SYSTEMS INC

Ryder Systems Inc (R), Baa1/BBB/A-, announced a US$400m (no grow) SEC regsitered 5-year (3/02/20) senior unsecured notoes. The active bookrunners are BAML, BNP (Paris: FR0000131104 - news) , MIZ and RBC. Covenant: 101% put upon CoC and downgrade to below IG (LSE: IGG.L - news) . Opt. Redemption: MWC until 1mo prior to maturity, par call thereafter. UOP: GCP. Settle: 2/24/15.

IPTs: T+125bp area

PRICE GUIDANCE: T+110bp area (+/- 5bp)

LAUNCH: US$400m at T+105bp

PRICED: US$400m 2.65% 5-year (3/02/20). At 99.934%. T+105bp

BOOK: US$1.7bn

NICS: neg 5bp

COMPS:

2.45% 9/3/19 T+103bp, G+110bp

SUMITOMO MITSUI BANKING CORP

Sumitomo Mitsui Banking Corporation reopened its 3-year US$500m Libor+58bp senior unsecured floating-rate notes due January 16 2018 and its US$1bn 2.45% senior unsecured fixed-rate notes due January 16 2020. Deal led by Goldman Sachs (NYSE: GS-PB - news) , SMBC Nikko, Citigroup (NYSE: C - news) , Barclays (LSE: BARC.L - news) and JP Morgan.

The bonds carry an unconditional and irrevocable guarantee from SMBC's New York branch and are expected to be rated A1/A+.

PRICE GUIDANCE: 3yr FRN 3mL+50-53bp, 5yr FXD T+90bp area (+/- 2bp)

LAUNCH: US$1.25bn 2-part. US$500m 3yr FRN at 3mL+50bp, US$750m 5yr FXD at T+88bp.

PRICED: US$1.25bn 2-part.

- US$500m cpn 3mL+58bp 3yr (1/16/18) FRN tap. At 100.239, 3mL+50bp.

- US$750m cpn 2.45% 5yr (1/16/20) FXD tap. At 98.802, yld 2.493%. T+88bp.

BOOK: US$2.7bn total.

10yr: US$900m

30yr: US$1.8bn

NICS: 5yr: 5bp

COMPS:

SUMIBK 2.45% 2019 T+83bp

SUMIBK 3mL+58bp 2018 DM+48bp

BNZ INTERNATIONAL FUNDING

BNZ International Funding Limited, acting through its London Branch, Aa3/AA-, announced a US$ benchmark 144A/RegS 3-year (2/26/18) fixed rate senior unsecured notes. The notes are guaranteed by the Bank of New Zealand. The active bookrunners include Cit, NAB and RBC. UOP: GCP.

IPTs: T+90bp area

PRICE GUIDANCE: T+85bp area (+/- 3bp)

LAUNCH: US$600m 3yr at T+82bp.

PRICED: US$600m 1.90% 3yr (2/26/18). At 99.971, yld 1.910%. T+82bp.

BOOK: US$1.1bn

NICS: 15bp (based on NAB parent 3yr coming at T+67bp)

COMPS:

2.35% 3/4/19s T+71bp G+93bp

ANZ 1.5% 1/18s T+60bp

(Reporting by Danielle Robinson; editing by Shankar Ramakrishnan)