HIGHGRADE CLOSE-Eleven issuers raise US$19.9bn in IG primary

* BNP (Paris: FR0000131104 - news) , FedEx (Swiss: FDX-USD.SW - news) over 3 times covered

* Santander UK (LSE: 44RS.L - news) over 4 times covered

* Principal 3yr floater dropped

* Most actively traded: F 5.291% 2046

By Mike Gambale

NEW YORK, Jan 3 (IFR) - Below is a recap of primary issuance activity in the US high-grade market on Tuesday:

Number of deals priced: 11

Total (LSE: 524773.L - news) issuance volume: US$19.9bn

Average new issue concession: 6

Total book to cover: 2.66

BARCLAYS (LSE: BARC.L - news)

Barclays PLC (BACR), Baa2/BBB/A, announced a US$ benchmark SEC (Shanghai: 603988.SS - news) registered 4-part senior unsecured note offering that includes a 6-year (1/10/2023) NC5 fixed and/or FRN, a 11-year NC10 fixed, and a 30-year (1/10/2048) fixed bullet. Barclays is sole active bookrunner. UOP: GCP. Settle: T+5 (1/10/2017).

IPTs: 6NC5 FXD T+195bp area, 6NC5 FRN Libor equiv, 11NC10 T+210bp area, 30yr T+210bp area

GUIDANCE: 6NC5 FXD T+180bp area, 6NC5 FRN Libor equiv, 11NC10 T+195bp area, 30yr T+195bp area. Area is +/- 5bp.

LAUNCH: US$5bn 4-part. US$1.5bn 6NC5 FXD at T+175bp, US$750m 6NC5 FRN at 3mL+162.5bp, US$1.25bn 11NC10 at T+190bp, US$1.5bn 30yr at T+190bp

PRICED: US$5bn 4-part total.

- US$1.5bn 3.684% cpn 6NC5 (1/10/2023) FXD. At 100, yld 3.684%. T+175bp. MWC+30bp.

- US$750m 6NC5 (1/10/2023) FRN at 3mL+162.5bp

- US$1.25bn 4.337% cpn 11NC10 (1/10/2028). At 100, yld 4.337%. T+190bp. MWC+30bp.

- US$1.5bn 4.95% cpn 30yr (1/10/2048). At 99.907, yld 4.956%. T+190bp. MWC+30bp.

BOOK: Total US$13.65bn; 6yr FRN US$1bn, 6yr FXD US$3.95bn, 11yr US$3.9bn, 30-year US$4.8bn

NIC (NasdaqGS: EGOV - news) : 6-year: 8bp (vs. 3.2% '21s at G+162bp, add 5bp for maturity extension, FV=G+167bp)

11-year: 8bp (6/11 curve worth 15bp, FV=G+182bp)

30-year: 15bp (vs. 5.25% '45s at T+175bp)

COMPS:

3.200% August 10, 2021 at G+162bp

5.250% August 17, 2045 at T+175bp

BNP PARIBAS (LSE: 0HB5.L - news)

BNPP announced a seven-year USD senior non-preferred self-led trade. Expected Baa2/A-/A+/A(high). Due 10 Jan 2024, pay January 10.

IPT: T+170-175bp

GUIDANCE: T+160bp (#)

LAUNCH: US$1.75bn at T+160bp

PRICED: US$1.75bn 3.80% cpn 7yr (1/10/2024). At 99.696, yld 3.85%. T+160bp.

BOOK: US$5.3bn

NIC: 13bp (vs. 2.375% '20s at G+97bp, add 40bp for maturity extension, FV=G+137bp. Add 10bp for non-pfd designation, FV=G+147bp)

COMPS:

BNP 2.375% May 21, 2020 at G+97bp

CREDIT AGRICOLE (Swiss: ACA.SW - news)

Crédit Agricole S.A. acting through its London branch, exp issue rating Baa2/BBB+/A, announced a US$ benchmark 144A/RegS senior non-preferred notes. Credit Agricole is sole active bookrunner. Joint-lead managers (no books) Citigroup (NYSE: C - news) , Deutsche Bank, SocGen (Paris: FR0000130809 - news) , TD Securities and Unicredit (EUREX: DE000A163206.EX - news) .

IPTs: 5yr FXD T+165bp area, 5yr FRN Libor equiv, 10yr T+195bp area

GUIDANCE: 5yr FXD T+145-150bp, 5yr FRN Libor equiv, 10yr T+175-180bp

LAUNCH: US$2.3bn 3-part. US$1bn 5yr FXD at T+145bp, US$300m 5yr FRN at 3mL+143bp, US$1bn 10yr at T+175bp

PRICED: US$2.3bn 3-part total.

- US$1bn 3.375% cpn 5yr (1/10/2022) FXD. At 99.945, yld 3.387%. T+145bp

- US$300m 5yr (1/10/2022) FRN. At 100, floats at 3mL+143bp

- US$1bn 4.125% cpn 10yr (1/10/2027). At 99.498, yld 4.187%. T+175bp.

BOOK: Total US$5bn; 5-year FRN US$650m, 5-year FXD US$2.1bn, 10-year US$2.25bn

NIC: 5-year FXD: 15bp (5/10s curve worth 30bp, FV=G+130bp)

10-year: 15bp (vs. 3.875% '24s at G+105bp, add 25bp for maturity extension, FV=G+130bp. Add 20bp for 2 notch-rating differential, FV=G+150bp. Add another 10bp for non-pfd designation, FV=G+160bp)

COMPS:

3.875% (A1/A) April 15, 2024 at G+105bp

DAIMLER FINANCE NA

Daimler Finance North America (DAIGR), A3/A/A-, announced a US$ benchmark 144A/RegS w/o reg rights senior unsecured note offering that includes a 3-year (1/06/2020) FXD/FRN, 5-year (1/06/2022), and a 10-year (1/06/2027).

The active bookrunners are Bank of America (Swiss: BAC-USD.SW - news) , COBA, JPMorgan (LSE: JPIU.L - news) and Mizuho. The notes contain a MWC and are guaranteed by Daimler AD. UOP: Make intra-group loans to the Guarantor and/or entities owned directly or indirectly by the Guarantor for GCP and the refinancing of debt. Settle: T+3 (1/06/17).

IPTs: 3yr FXD T+95bp area, 3yr FRN Libor equiv, 5yr T+105bp area, 10yr T+120bp area

GUIDANCE: 3yr FXD T+85bp area (+/- 2bp), 3yr FRN Libor equiv, 5yr T+95bp area (+/- 2bp), 10yr T+105bp (#)

LAUNCH: US$3bn 4-part. US$1bn 3yr FXD T+83bp, US$400m 3yr FRN at 3m+63bp, US$850m 5yr at T+93bp, US$750m 10yr at T+105bp

PRICED: US$3bn 4-part total.

- US$1bn 2.30% cpn 3yr (1/06/2020) FXD. At 99.954, yld 2.316%. T+83bp. Benchmark spot: 99-21¾ (1.486%). MWC+15bp.

- US$400m 3yr (1/06/2020) FRN. At 100, floats at 3mL+63bp

- US$850m 2.85% cpn 5yr (1/06/2022). At 99.889, yld 2.874%. T+93bp. Benchmark spot: 100-08+ (1.944%). MWC+15bp.

- US$750m 3.45% cpn 10yr (1/06/27). At 99.598, yld 3.498%. T+105bp. Benchmark spot: : 96-03 (2.448%). MWC+20bp.

BOOK: Total US$5.57bn; 3-year FXD US$1.4bn, 3-year FRN US$470m, 5-year US$1.6bn, 10-year US$2.1bn

NIC: 3-year FXD: 3bp (vs. 1.75% '19s at G+80bp)

5-year: 4bp (vs. 2.2% '21s at G+87bp, add 2bp for maturity extension, FV=G+89bp)

10-year: 5bp (vs. 3.5% '25s at G+95bp, add 5bp for maturity extension, FV=G+100bp)

COMPS:

DAIGR 1.750% October 2019 at G+80bp

DAIGR 2.000% July 2021 at G+87bp

DAIGR 2.200% October 2021 at G+87bp

DAIGR 3.500% August 2025 at G+95bp

BMW (EUREX: BMWE.EX - news) (A1/A) 1.850% September 2021 at G+79bp

BMW (A1/A) 2.800% April 11, 2026 at G+87bp

DUKE ENERGY FLORIDA LLC

Duke Energy Florida LLC (DUK), A1/A/A, announced a US$900m (no grow) SEC registered 2-part first mortgage bonds that include a 3-year (1/15/2020) and 10-year (1/15/2027). The active bookrunners are Bank of America, Scotia, TD, UBS (LSE: 0QNR.L - news) and Wells Fargo. Optional Redemption: MWC; 3 month par call on 10-year.

Use of Proceeds: To fund capex for ongoing construction, capital maintenance, to repay US$250m 5.80% FMBs due 2017 and for GCP. Settle: T+3.

IPTs: 3yr T+55bp area, 10yr T+90bp area

GUIDANCE: 3yr T+45bp area (+/- 5bp), 10yr T+80bp area (+/- 5bp)

LAUNCH: US$900m 3-part. US$250m 3yr at T+40bp, US$650m 10yr at T+75bp

PRICED: US$900m 2-part total.

- US$250m 1.85% cpn 3yr (1/15/2020). At 99.886, yld 1.889%. T+40bp. Benchmark spot: 99-21+ (1.489%). MWC+7.5bp.

- US$650m 3.20% cpn 10yr (1/15/2027). At 99.940, yld 3.207%. T+75bp. Benchmark spot: 96-00+ (2.457%). MWC+15bp.

BOOK: Total US$2.35bn; 3-year US$750m, 10-year US$1.6bn

NIC: 3-year: 4bp (3/10s curve worth 35bp, FV=G+36bp)

10-year: 4bp (vs. 2.95% '26s at G+71bp)

COMPS:

DUK 2.950% December 1, 2026 at G+71bp

FEDEX

FedEx Corp (FDX), Baa2/BBB, announced a US$ benchmark SEC registered senior unsecured note offering that includes a 10-year (3/15/2027) and 30-year (1/15/2047) senior unsecured notes. The active bookrunners are Regions, Scotia, Suntrust and Wells Fargo (Swiss: WFC-USD.SW - news) . Optional Redemption: Make Whole Calls, 3mo par call on the 10yr tranche and a 6mo par call on the 30yr tranche, and a Change of Control.

UOP: Working capital and GCP, which include a voluntary incremental contribution to tax-qualified U.S. domestic pension plans. Settlement: T+3 (Jan 06, 2017)

IPTs: 10yr T+110-115bp, 30yr T+160-165bp

GUIDANCE: 10yr T+95bp area, 30yr T+145bp area. Area is +/- 5bp.

LAUNCH: US$1.2bn 2-part. US$450m 10yr at T+90bp, US$750m 30yr at T+140bp

PRICED: US$1.2bn 2-part total.

- US$450m 3.30% cpn 10yr (3/15/2027). At 99.598, yld 3.346%. T+90bp. MWC+15bp.

- US$750m 4.40% cpn 30yr (1/15/2047). At 98.946, yld 4.464%. T+140bp. MWC+25bp.

BOOK: Total US$4.42bn; 10-year: US$1.65bn, 30-year: US$2.77bn

NIC: 10-year: Flat (vs. 3.25% '26s at G+88bp, add 2bp for maturity extension, FV=G+90bp)

30-year: Flat (vs. 4.55% '46s at T+140bp)

COMPS:

FDX 3.250% April 1, 2026 at G+88bp

FDX 4.550% April 1, 2046 at T+140bp

JOHN DEERE CAPITAL CORP

John Deere Capital Corporation (DE), A2/A/A, announced a US$ benchmark US$ benchmark SEC registered 3-part senior unsecured note offering that includes a short 2-year (10/15/2018) FXD and/or FRN and a 5-year (1/06/2022) FXD. The active bookrunners are Bank of America, Citigroup, and Goldman Sachs (NYSE: GS-PB - news) . UOP: GCP. Settle: 1/06/2017.

IPTs: short 2yr FXD T+65bp area, short 2yr FRN Libor equiv, 5yr T+85bp area

GUIDANCE: 2yr FXD T+50bp area, 2yr FRN Libor equiv, 5yr T+75bp area. Area is +/- 3bp.

LAUNCH: US$1bn 3-part. US$350m 2yr FXD at T+47bp, US$250m 2yr FRN at 3mL+27bp. US$400m 5yr FXD at T+72bp

PRICED: US$1bn 3-part total.

- US$350m 1.65% cpn 2yr (10/15/2018) FXD. At 99.935, yld 1.688%. T+47bp. Benchmark spot: 100-02 (1.218%).

- US$250m 2yr (10/15/2018) FRN. At 100, floats at 3mL+27bp

- US$400m 2.65% cpn 5yr (1/06/2022) FXD. At 99.972, yld 2.656%. T+72bp Benchmark spot: 100-09 3/4 (1.936%)

BOOK: US$3.2bn total; 2-year FXD US$1.3bn, 2-year FRN US$800m, 5-year FXD US$1.1bn

NIC: 2-year FXD: 1bp (vs. 1.95% '19s at G+48bp, subtract 2bp for maturity differential, FV=G+46bp)

5-year: Flat (vs. 2.55% '21s at G+69bp, add a couple of basis points, FV=G+71bp)

COMPS:

DE 1.950% January 8, 2019 at G+48bp

DE 2.550% January 8, 2021 at G+69bp

PRINCIPAL LIFE

Principal Life Global Funding II (PFG), A1/A+, announced a US$ benchmark 144A/RegS w/o reg rights 2-part FA-backed notes that includes a 3-year (1/10/2020) FXD and/or FRN. The active bookrunners are Barclays, Credit Suisse (IOB: 0QP5.IL - news) and Deutsche Bank (IOB: 0H7D.IL - news) . UOP: Purchase of relevant funding agreement from Principal Life. Settle: 1/10/2017.

IPTs: 3yr FXD T+low 80s, 3yr FRN Libor equiv

GUIDANCE: 3yr FXD T+75bp area (+/- 3bp), 3yr FRN Libor equiv

LAUNCH: US$500m 3yr FXD at T+72bp. (3yr FRN dropped)

PRICED: US$500m 2.15% cpn 3yr (1/10/2020). At 99.861, yld 2.198%. T+72bp. Benchmark spot: 99-22+ (1.478%).

BOOK: US$600m

NIC: 3-year FXD: 2bp (vs. 1.5% '19s at G+68bp, add 2bp for maturity extension, FV=G+70bp)

COMPS:

PFG 1.500% April 18, 2019 at G+68bp

PFG 2.375% November 21, 2021 at G+78bp

RABOBANK NEDERLAND NY

Rabobank Nederland NY, rated Aa2/A+, announced a US$ benchmark 3(a)2 exempt 5-year (1/10/2022) fixed and/or FRN via Credit Suisse, Goldman Sachs, JPMorgan and Royal Bank of Canada (Other OTC: RBCDF - news) . UOP: GCP. Settlement date 1/10/2017.

IPT: 5-year fxd T+100bp area, 5-year FRN 3mL+equivalent

GUIDANCE: 5yr FXD T+87.5bp area (+/- 2.5bp), 5yr FRN Libor equiv

LAUNCH: US$1.5bn 2-part. US$1bn 5yr FXD at T+85bp, US$500m 5yr FRN at 3mL+83bp

PRICED: US$1.5bn 2-part total.

- US$1bn 2.75% cpn 5yr (1/10/2022) FXD. At 99.805, yld 2.792%. T+85bp. Benchmark spot: 100-08¾ (1.942%)

- US$500m 5yr (1/10/2022) FRN. At 100, floats at 3mL+83bp

BOOK: Total US$3.9bn; 5-year FXD US$2.8bn, 5-year FRN US$1.1bn

NIC: 5-year FXD: 5bp (vs. 2.25% '20s at G+75bp, add 5bp for maturity extension, FV=G+80bp)

COMPS:

RABOBK 2.250% January 14, 2020 at G+75bp

SANTANDER UK

Santander UK Group Holdings PLC (SANUK), exp ratings Baa1/BBB/A, announced a US$1bn (no grow) SEC registered 6-year (1/10/2023) non-call 5-year senior unsecured notes. The active bookrunners are Bank of America, Deutsche Bank, Goldman Sachs, Santander and Wells Fargo. UOP: GCP. Settle: 1/10/2017.

IPT: T+185bp

GUIDANCE: T+165bp area (+/- 2bp)

LAUNCH: US$1bn at T+163bp

PRICED: US$1bn 3.571% cpn 6yr (1/10/23) NC5. At 100, yld 3.571%. T+163bp.

BOOK: US$4.4bn

NIC: 8bp (vs. 2.875% '21s at G+145bp, add 10bp for maturity extension, FV=G+155bp)

COMPS:

SANUK 2.875% August 15, 2021 at G+145bp

SANUK 4.750% September 15, 2025 at G+250bp

JPM (Aa3/A) 2.972% January 15, 2023 at G+95bp

WESTPAC

Westpac Banking Corporation (Frankfurt: 854242 - news) , exp issue rating Aa2/AA (Frankfurt: A116XA - news) -, announced a US$ benchmark SEC registered 5-year fixed/FRN. The active bookrunners are Bank of America and HSBC.

IPT: 5yr FXD T+105bp area, 5yr FRN Libor equiv.

GUIDANCE: 5yr FXD T+90bp area (+/- 2bp), 5yr FRN Libor equiv

LAUNCH: US$1.75bn 2-part deal.

- US$1.25bn 5-year FXD at T+88bp

- US$500m 5-year FRN at 3mL+85bp

PRICED: US$1.75bn 2-part total

- US$1.25bn 2.80% cpn 5yr (1/11/2022). At 99.949, yld 2.811%. T+88bp.

- US$500m 5yr (1/11/2022) FRN. At 100, floats at 3mL+85bp.

BOOK: US$4.5bn total; US$3bn FXD, US$1.5bn FRN

NIC: 5-year FXD: 4bp (vs. 2% '21s at G+84bp)

COMPS:

WSTP 2.000% August 19, 2021 at G+84bp

USD HIGH-GRADE PIPELINE

International Company for Water and Power Projects (ACWA Power), co-owner and operator of a portfolio of power generation and water desalination plants in Saudi Arabia, mandated Jefferies as global coordinator and sole structuring adviser along with Citi, CCB Singapore, Mizuho and Standard Chartered (BSE: 580001.BO - news) Bank as joint lead managers and joint books to arrange investor meetings in the US, Europe, Asia and the Middle East commencing on November 23. ACWA Power Management and Investment One Limited (Issuer) is a wholly-owned subsidiary of ACWA Power, which holds an interest in a portfolio of nine power generation and water desalination plants in Saudi Arabia. Company considering a benchmark US dollar senior secured 144a/Reg S Bond offering with expected investment-grade ratings from two international ratings agencies.

Canara Bank (BSE: CANBK.BO - news) mandated BAML, Barclays, BNP Paribas, Citigroup, HSBC, JP Morgan and Credit Agricole as joint lead managers for a senior unsecured US dollar 144A/Reg S offering. The deal, expected to be issued out of Canara Bank's London branch, will target around US$300m-$500m, a bank official said. UOP: Fund business operations.

Korea Hydro and Nuclear Power Co. Ltd, Aa2/AA, mandated BNP Paribas and Citigroup two months ago.

Hyundai Capital Services, Baa1/A-, mandated Citigroup, HSBC and Nomura as joint books two months ago in preparation for a possible dollar-denominated 144a/Reg S issue. (Reporting by Mike Gambale; editing by Shankar Ramakrishnan)