Advertisement
UK markets closed
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • HANG SENG

    16,541.42
    +148.58 (+0.91%)
     
  • CRUDE OIL

    83.11
    +1.76 (+2.16%)
     
  • GOLD FUTURES

    2,254.80
    +42.10 (+1.90%)
     
  • DOW

    39,807.37
    +47.29 (+0.12%)
     
  • Bitcoin GBP

    56,092.26
    +1,421.26 (+2.60%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • NASDAQ Composite

    16,379.46
    -20.06 (-0.12%)
     
  • UK FTSE All Share

    4,338.05
    +12.12 (+0.28%)
     

HIGHGRADE CLOSE-Twelve high-grade issuers raise US$23.020bn

* Fourth busiest day of the year

* Cisco just over 2 times covered

* Nvidia (Swiss: NVDA.SW - news) over 4 times covered

* Liberty upsized to US$400m

* IG (Frankfurt: A0EARV - news) pipeline continues to grow

By Mike Gambale

NEW YORK, Sept 13 (IFR) - Below is a recap of primary issuance activity in the US high-grade market on Tuesday:

Number of deals priced: 12

Total (LSE: 524773.L - news) issuance volume: US$23.020bn

Average new issue concession: 4.77

Average book to cover: 2.48

CISCO SYSTEMS INC (HKSE: 4333.HK - news)

Cisco Systems Inc (CSCO), A1/AA (Frankfurt: A116XA - news) -, announced a US$ benchmark SEC registered 5-part senior unsecured note offering that includes a 3-year (9/20/2019) FXD and/or FRN, 5-year (9/20/2021), 7-year (9/20/2023) and 10-year (9/20/2026). The active bookrunners are Bank of America (Swiss: BAC.SW - news) , Citigroup (NYSE: C - news) , HSBC, JPMorgan and Morgan Stanley (Xetra: 885836 - news) .

ADVERTISEMENT

Optional redemption: Make-whole Calls; 5-year: 1-Mo par-call, 7-year: 2-Mo par call, 10-year: 3-Mo par call. UOP: purposes may include repurchases of common stock, repayment of debt, including the repayment of previously issued senior unsecured notes, acquisitions, investments, additions to working capital, capital expenditures, cash dividends and advances to or investments in our subsidiaries. Settle: 9/20/2016.

IPTS: 3yr FXD T+65-70bp; 3yr FRN Libor equiv; 5yr T+80a; 7yr T+85-90; 10yr T+95-100

PRICE GUIDANCE: 3yr FXD T+50-55bp; 3yr FRN Libor equiv; 5yr T+65a (+/- 2.5bp); 7yr T+70-75; 10yr T+80-85

LAUNCH: US$6.25bn 5-part. US$1.5bn 3yr FXD T+50bp; US$500m 3yr FRN at 3mL+34bp; US$2bn 5yr at T+62.5bp; US$750m 7yr at T+70bp; US$1.5bn 10yr at T+80bp

PRICED: US$6.25bn 5-part total.

- US$1.5bn 1.40% cpn 3yr (9/20/2019) FXD. At 99.889, yld 1.438%. T+50bp. MWC+10bp

- US$500m 3yr (9/20/2019) FRN. At 100, floats at 3mL+34bp

- US$2bn 1.85% cpn 5yr (9/20/2021). At 99.986, yld 1.853%. T+62.5bp. MWC+10bp.

- US$750m 2.20% cpn 7yr (9/20/2023). At 99.794, yld 2.232%. T+70bp. MWC+12.5bp.

- US$1.5bn 2.50% cpn 10yr (9/20/2026). At 99.912, yld 2.51%. T+80bp. MWC+12.5bp.

BOOK: Total book US$13.05bn; 3-year FRN US$950m, 3-year FXD US$2.6bn, 5-year US$4bn, 7-year US$1.9bn, 10-year US$3.6bn

NIC (NasdaqGS: EGOV - news) : 3-year FXD: 5bp (vs. 1.6% '19s at G+42bp, add 3bp for maturity extension, FV=G+45bp)

5-year FXD: 5.5bp (vs. 2.2% '21s at G+55bp, add 2bp for maturity extension, FV=G+57bp)

7-year: 5bp (7/10s curve worth 10bp, FV=G+65bp)

10-year: 5bp (vs. 2.95% '26s at G+75bp)

COMPS:

1.600% February 28, 2019 at G+42bp

2.200% February 28, 2021 at G+55bp

2.950% February 28, 2026 at G+75bp

DEUTSCHE TELEKOM INTERNATIONAL FINANCE

Deutsche Telekom International Finance B.V., Baa1/BBB+/BBB+, announced a US$ benchmark 144A/RegS 4-part senior unsecured note offering that includes a 3-year FXD and/or FRN, 5-year FXD and 7yr FXD. The active bookrunners are Goldman Sachs (NYSE: GS-PB - news) , JPMorgan and Royal Bank of Canada (LSE: 0QKU.L - news) . The Passive bookrunners are Citi, CS and BOTM. Guarantor: Deutsche Telekom AG (LSE: 0MPH.L - news) . Redemptions: 5yr-1mos par call, 7yr-2mos par call + Make Whole Call. UOP: to be on-lent by the Issuer to Group companies and used for general corporate purposes. Settle: 9/19/2016.

IPTs: 3yr FXD T+75-80bp area, 3yr FRN Libor equiv, 5yr T+90-95bp, 7yr T+105-110.

PRICE GUIDANCE: 3yr FXD T+60-65bp, 3yr FRN Libor equiv, 5yr T+75-80bp, 7yr T+95-100bp.

LAUNCH: US$2.75bn 4-part. US$750m 3yr FXD at T+60bp, US$250m 3yr FRN at 3mL+45bp, US$1bn 5yr T+75bp, US$750m 7yr at T+95bp.

PRICED: US$2.75bn 4-part total.

- US$750m 1.50% cpn 3yr (9/19/2019) FXD. At 99.907, yld 1.532%. T+60bp

- US$250m 3yr (9/19/2019) FRN. At 100, floats at 3mL+45bp.

- US$1bn 1.95% cpn 5yr (9/19/2021). At 99.839, yld 1.984%. T+75bp

- US$750m 2.485% cpn 7yr (9/19/2023). At 99.994, yld 2.486%. T+95bp.

BOOK: Total book US$4.6bn; 3-year FRN US$300m, 3-year FXD US$1.2bn, 5-year US$1.6bn, 7-year US$1.5bn

BP CAPITAL MARKETS

BP Capital Markets PLC (BPLN), A2/A-, announced a US$ benchmark SEC registered 3-part senior unsecured note offering that includes a 5-year (9/16/2021) fixed and/or FRN and a long (1/16/2027) 10-year FXD. The active bookrunners are Bank of America, Barclays (LSE: BARC.L - news) , BNP Paribas (LSE: 0HB5.L - news) , HSBC, Mizuho and Morgan Stanley. The notes contain a MWC, and a 1mth par call on 5yr and 3mth on 10yr. UOP: gcp, incl working cap for BP or other companies in the BP group and the repayment of existing borrowings of BP and its subs.

IPTS: 5yr FXD T+100-105bp, 5yr FRN Libor equiv, 10yr T+145bp area

PRICE GUIDANCE: 5-year FRN 3mL+equivalent, 5-year FXD T+90bp area (+/-2.5bp), 10-year T+130-135bp.

LAUNCH: US$2bn 3-part. US$750m 5yr FXD at 87.5bp, US$250m 5-year FRN at 3mL+87bp, US$1bn 10-year T+130bp.

PRICED: US$2bn 3-part total.

- US$750m 2.112% cpn 5yr (9/16/2021) FXD. At 100, yld 2.112%. 87.5bp. MWC+15bp.

- US$250m 5-year (9/16/2021) FRN. At 100, floats at 3mL+87bp,

- US$1bn 3.017% cpn 10-year (1/16/2027) FXD. At 100, yld 3.017%. T+130bp. MWC+20bp.

BOOK: US$4.925bn total; 5yr FRN US$625m, 5-year FXD US$1.9bn, 10-year US$2.4bn

NIC: 5-year: 5.5bp (5/10s curve worth 45p, FV=G+82bp

10-year: 7bp (vs. 3.119% '26s at G+123bp)

COMPS:

3.119% May 4, 2026 at G+123bp

ABN AMRO BANK

ABN AMRO Bank N.V. (ABNANV), A1/A/A+, announced a US$ benchmark 144A/RegS 3-year (9/20/2019) fixed senior unsecured notes. The active bookrunners are Citigroup, Deutsche Bank (LSE: 0H7D.L - news) , JPMorgan, Morgan Stanley and Wells Fargo (Hanover: NWT.HA - news) . UOP: GCP. Settle: 9/20/2016.

IPTS: T+mid-hi 90s

PRICE GUIDANCE: T+90bp (#)

LAUNCH: US$750m at T+90bp

PRICED: US$750m 1.80% cpn 3yr (9/20/2019). At 99.866, yld 1.846%. T+90bp. Benchmark spot: 99-14/0.946%. 1st pay: 3/20/2017.

BOOK: US$1.1bn

NIC: 5bp (vs. 2.45% '20s at G+85bp)

COMPS:

2.450% June 4, 2020 at G+85bp

THE BANK OF NOVA SCOTIA (Xetra: BKN.DE - news)

The Bank of Nova Scotia has opened books on a five-year US dollar benchmark covered bond.

The Aaa/AAA/AAA (Moody's/Fitch/DBRS) rated Canadian legislative covered bond is backed by residential mortgages and has a soft bullet structure. Joint-bookunners are Barclays, Goldman Sachs, HSBC, Scotia and UBS (LSE: 0QNR.L - news) .

IPT: MS+65bp

LAUNCH: US$1.25bn at MS+62bp

PRICED: US$1.25bn 1.875% cpn 5yr (9/20/2021) at 100. MS+62bp.

BOOK: US$1.4bn

NIC: 2bp (vs. 1.875% '21s at MS+58bp

COMPS:

1.875% April 26, 2021 at MS+58bp

ALTRIA GROUP INC (NYSE: MO - news)

Altria Group Inc (MO), A3/A-/BBB+, announced a US$ benchmark SEC registered 2-part senior note offering that include a 10-year (9/16/2026) and 30-year (9/16/2046). The active bookrunners are Deutsche Bank, Goldman Sachs, with Mizuho and Morgan Stanley as passive bookrunners. The notes are guaranteed by Philip Morris USA Inc. The notes also contain a CoC at 101, and a MWC then 3mos par call on 10y and 6mos on 30y. UOP: to fund the purchase of the outstanding 9.95% notes due 2038 and our outstanding 10.20% notes due 2039, and for other general corporate purposes, including voluntary contributions to our pension plans. Settle: 9/16/2016.

IPTS: 10yr T+115bp area, 30yr T+165-170bp

PRICE GUIDANCE: 10yr T+100bp area, 30yr T+155bp area. Area is +/- 5bp

LAUNCH: US$2bn 2-part. US$500m 10yr T+95bp, US$1.5bn 30yr at T+150bp

PRICED: US$2bn 2-part total.

- US$500m 2.625% cpn 10yr (9/16/2026). At 99.590, T+95bp. MWC+15bp. 1st pay: 3/16/17.

- US$1.5bn 3.875% cpn 30yr (9/16/2046). At 98.515, T+150bp. MWC+25bp. 1st pay: 3/16/2017.

BOOK: US$6.7bn total; 10-year US$2.7bn, 30-year US$4bn

NIC: 10-year: 4bp (vs. 4% '24s at G+81bp, add 10bp for maturity extension, FV=G+91bp)

30-year: 11bp (vs. 5.375% '44s at T+144bp, add 5bp for maturity extension, T+149bp, subtract 10bp for high dollar price, FV=T+139bp)

COMPS:

4.000% January 31, 2024 at G+81bp

5.375% January 31, 2044 at T+144bp (US$125)

PETROLEOS MEXICANOS

Petróleos Mexicanos (PEMEX), Baa3/BBB+/BBB+, announced a US$ benchmark 144A/RegS w/ reg rights 2-part senior unsecured notes that include a 7-year (2023) and 31-year (2047). Active bookrunners: Barclays (Swiss: BARC.SW - news) / Citi (B&D) / HSBC / MUFG / Natixis (LSE: 0IHK.L - news) . Guarantors: Pemex Exploración y Producción, Pemex Transformación Industrial, Pemex Perforación y Servicios, Pemex Logística, Pemex Cogeneración y Servicios. Use of Proceeds: Fund concurrent cash tender offer, transaction fees and expenses for concurrent cash tender offer and exchange offer, finance investment program.

IPTS: 7yr 4.75% area, 31yr 6.75% area

PRICE GUIDANCE: 7yr 4.75% (+/- 12.5bp), 31yr 6.75% (#)

LAUNCH: US$4bn 2-part. US$2bn 7yr at 4.625%, US$2bn 31yr at 6.75%

PRICED: US$4bn 2-part total.

- US$2bn 4.625% cpn 7yr (9/21/23). At 100, yld 4.625%.

- US$2bn 6.75% cpn 31yr (9/21/47). At 100, yld 6.75%.

LIBERTY PROPERTY LIMITED PARTNERSHIP

Liberty Property Limited Partnership, Baa1/BBB/BBB, announced a US$300m SEC registered 10-year (10/01/2026) senior unsecured notes. The active bookrunners are Bank of America, Citigroup and JPMorgan. Optional Redemption: Make-whole call, par call 3 months prior to maturity.

Use of Proceeds: The Company intends to use the net proceeds from this offering for the early redemption of the $300 million 5.5% senior notes due December 15, 2016, with any remainder to be used for working capital and general corporate purposes, including repayment of borrowings under the $800.0 million credit facility. Settle: 9/20/2016.

IPTS: T+190bp area

PRICE GUIDANCE: T+165bp area (+/-2.5bp)

LAUNCH: US$400m (upsized from US$300m) at T+162.5bp

PRICED: US$400m 3.25% cpn 10-yr (10/01/2026). At 99.162, yld 3.349%. T+162.5bp. Benchmark spot: 97-31/1.724%. MWC+25bp. 1st pay: 4/01/2017.

BOOK: US$1.8bn

NIC: 1.5bp (vs. 3.75% '25s at G+161bp)

COMPS:

3.750% April 1, 2025 at G+161bp

DUKE ENERGY PROGRESS LLC

Duke Energy Progress LLC (DUK), Aa3/A/A+, announced a US$450m (no grow) SEC registered 30-year (10/15/2046) 1st mortgage bond. The active bookrunners are Credit Suisse (LSE: 0QP5.L - news) , Mitsubishi (LSE: 7035.L - news) and Wells Fargo. The notes contain a Make Whole Call and a Par Call: 6 month(s) prior to maturity. Use of Proceeds: To fund capex for ongoing construction and capital maintenance and for GCP. Settlement: T+3 (Sep 16, 2016).

IPTS: T+135-140bp

PRICE GUIDANCE: T+125bp area (+/- 2bp)

LAUNCH: US$450m at T+123bp

PRICED: US$450m 3.70% cpn 30yr (10/15/2046). At 99.745, yld 3.714%. T+123bp. MWC+20bp.

BOOK: US$1.1bn

NIC: Flat (vs. 4.2% '45s at T+123bp)

COMPS:

4.200% August 15, 2045 at T+123bp

NVIDIA CORPORATION (Frankfurt: 918422 - news)

NVIDIA Corporation, Baa1/BBB-, announced a US$ benchmark SEC registered 2-part senior note offering that includes a 5-year (9/16/2021) and a 10-year (9/16/2026). The active bookrunners are Goldman Sachs, Morgan Stanley and Wells Fargo. UOP: to prefund the repayment of the principal amount of our convertible notes and for general corporate purposes such as dividend payments or share repurchases. Settle: 9/16/2016.

IPTS: 5yr T+137.5bp area, 10yr T+187.5bp area

PRICE GUIDANCE: 5yr T+105bp area, 10yr T+155bp area. Area is +/- 5bp

LAUNCH: US$2bn 2-part. US$1bn 5yr at T+100bp, US$1bn 10yr at T+150bp

PRICED: US$2bn 2-part.

- US$1bn. Cpn 2.20%. Due 9/16/2021. Ip US$99.802. Yld 2.242%. T+100bp. MWC T+15bp.

- US$1bn. Cpn 3.20%. Due 9/16/2026. Ip US$99.796. Yld 3.224%. T+150bp. MWC T+25bp.

BOOK: Total book US$9.6bn; 5-year US$5bn, 10-year US$4.6bn

NIC: Debut corporate offering (non-convertible)

WASHINGTON GAS & LIGHT CO

Washington Gas Light Co (WGL), A1/A+/AA-, announced a US$250m SEC registered 30-year (9/15/2046) medium term senior unsecured notes, Series K. The active bookrunners are Mitsubishi and Wells Fargo. Optional Redemption: Make Whole Call and a Par Call: 6 month(s) prior to maturity.

Use of Proceeds: To retire short-term debt primarily used to fund the capital expenditure program and for general corporate purposes. Settlement: T+3 (Sep 16, 2016).

IPTS: T+155bp area

PRICE GUIDANCE: T+135bp area (+/- 2bp)

LAUNCH: US$250m at T+133bp

PRICED: US$250m 3.796% cpn 30yr (9/15/2046). At 100, yld 3.796%. T+133bp. Benchmark spot: 100-23/2.466%. MWC+20bp. 1st pay: 3/15/2017.

BOOK: US$1.2bn

NIC: 6bp (vs. WEC 4.3% '45s at T+127bp, high dollar price and rating differential offset, FV=T+127bp)

COMPS:

WISCONSIN ELECTRIC POWER (A1/A-) 4.3% Dec 2045 at T+127bp (US$113)

UNITED AIR INC

United Air Inc announced a US$919,593,000 SEC registered 2016-2 pass through certificate, Series 2016-2. The active bookrunners are CS, MS and GS (KSE: 078935.KS - news) . UOP: to purchase equipment notes issued by United during the delivery period. The 13 Aircraft to be financed pursuant to this Offering will consist of one new Boeing (NYSE: BA - news) 737-824 aircraft, three new Boeing 737-924ER aircraft, two new Boeing 787-9 aircraft and seven new Boeing 777-322ER aircraft scheduled for delivery between December 2016 and June 2017.

Class AA: US$636,512,000; rating: Aa3/AA; exp maturity: 10/07/28; IPT: 2.875% area

Class A: US$283,081,000; rating A2/A; exp maturity 10/07/28;

IPTS: 3.25% area

LAUNCH: US$919.593m 2-part. Class AA US$636.512m at 2.875%, CLASS A US$283.081m at 3.10%

PRICED: US$919.593m 2-part total.

- Class AA US$636.512m 2.875% cpn 12-yr (10/07/2028) at 100. Spread: T+114.1bp, yld 2.875%. MWC+20bp.

- Class A US$283.081m 3.10% cpn 12-yr (10/07/2028) at 100. Spread: T+136.6bp, yld 3.10%. MWC+25bp.

BOOK: Total book US$1.675bn; Class AA: US$850m, Class A: US$825m

USD HIGH-GRADE PIPELINE

KEB Hana Bank, A1/A, has mandated Citigroup, Credit Agricole (Swiss: ACA.SW - news) CIB, J.P. Morgan (Other OTC: MGHL - news) , Standard Chartered Bank, UBS and KEB Hana Global Finance to arrange a series of fixed income investor meetings in Asia, Europe, the Middle East and the U.S (Other OTC: UBGXF - news) ., commencing on 26 September 2016. A USD denominated 144A/Reg S transaction may follow, subject to market conditions.

LafargeHolcim Ltd (LSE: 0QKY.L - news) , Baa2/BBB, mandated Citigroup, HSBC, JP Morgan and Royal Bank of Canada as joint leads to arrange US fixed income conference calls beginning on Tuesday, September 13 from 8:15am through 2pm ET in preparation for a dollar-denominated 144a/RegS senior notes new issue that could soon follow their conclusion. Calls will also be held on Wednesday, September 14 from 8:15am thru 2pm ET.

BRF GmbH, BBB/BBB, a subsidiary of the Brazilian food conglomerate BRF S.A (NYSE: BRFS - news) ., mandated BB Securities, Bradesco BBI, Itau BBA, JP Morgan and Santander as joint book runners to arrange fixed income investor meetings in preparation for a dollar-denominated 144a/RegS senior unsecured new issue that could soon follow its conclusion.

Banco Inbursa, BBB+/BBB+, mandated Bank of America/Merrill Lynch, Citigroup and Credit Suisse as joint book runners to arrange fixed income investor meetings in the US, Mexico and Europe that ended on Monday.

Activision Blizzard Inc (Frankfurt: A0Q4K4 - news) , Baa3/BBB-, asked Bank of America/Merrill Lynch, JP Morgan and Wells Fargo to arrange fixed income investor calls that took place on Thursday, September 8 from 9:00am thru 5:00pm ET. BAML is coordinating.

Nvidia Corporation (Baa1/BBB+), the Santa Clara, California based technology company asked Goldman Sachs, Morgan Stanley and Wells Fargo to arrange US fixed income investor calls that took place on Wednesday September 7 and Thursday September 8. GS is coordinating in preparation for a dollar-denominated benchmark offering that could soon follow its conclusion.

MTN Group, multinational mobile operator headquartered in Johannesburg, rated Baa3 (neg) by Moody's and BBB- (neg) by S&P, has mandated BAML, Barclays, Citi and Standard Bank to arrange investor meetings in the US and UK that began 9 September in connection with an offering of intermediate tenor USD-denominated benchmark Reg S/144A senior unsecured fixed rate notes.

Shire Acquisitions Investments Ireland DAC and guaranteed by Shire Plc (Xetra: S7E.DE - news) , Baa3/BBB-, mandated Bank of America/Merrill Lynch, Barclays and Morgan Stanley to arrange fixed income investor meetings in the US and London that began Monday, September 12 in preparation for a dollar-denominated senior unsecured notes transaction. BAML is coordinating the meetings that end in London on September 15.

Transurban Group, Baa1/BBB+, the manager and developer of Australia's urban toll road network, mandated Bank of America/Merrill Lynch, Citigroup and JP Morgan to arrange fixed income investor meetings in the US and Asia that took place on Thursday, September 8th in preparation for a dollar-denominated transaction.

Korea National Oil Corp, Aa2/AA-, will meet investors this month for an offering of US dollar 144a/Reg S bonds. The roadshow began in Hong Kong on September 5. The company had planned to meet investors in Singapore, Frankfurt, London, New (KOSDAQ: 160550.KQ - news) York, Philadelphia, Boston and Los Angeles. Proceeds will refinance debt maturing this year.

Industrial Bank of Korea, Aa2/AA-, hired HSBC and Nomura to arrange fixed income investor meetings that took place in Hong Kong and Singapore last week in preparation for a 144a/RegS dollar-denominated offering.

Woori Bank (KSE: 000030.KS - news) , A2/A-, hired Bank of America/Merrill Lynch, Citigroup, Commerzbank (Xetra: CBK100 - news) , Credit Agricole CIB, HSBC and Nomura to arrange fixed-income investor meetings that took place in the US, Europe and Asia from July 11 to July 20. (Reporting by Mike Gambale; editing by Shankar Ramakrishnan)