HIGHGRADE CLOSE-Two high-grade issuers raise US$3bn

* Price progression: BP 20bp-25bp, PM 12bp

* BP almost 5 times covered

* Philip Morris 4 times covered

* Citigroup (NYSE: C - news) 3.4% 2026 most actively traded

* Little/no issuance expected Friday

By Mike Gambale

NEW YORK, April 28 (IFR) - Below is a recap of primary issuance activity in the US high-grade market on Thursday:

Number of deals priced: 2

Total (LSE: 524773.L - news) issuance: US$3bn

Average new issue concession: 1.75

Total book to cover: 4.60

BP CAPITAL MARKETS

BP Capital Markets PLC, A2/A- (p/s), announced a US$ benchmark 2-part SEC-Reg senior unsecured offering via Citigroup, Deutsche Bank (LSE: 0H7D.L - news) , HSBC, JPMorgan, Mizuho and Mitsubishi (LSE: 7035.L - news) . Structure will consist of a 3-year (5/3/2019) fixed and/or frn and a 10-year (5/4/2026) fixed. Make-whole call applies, along with a 3-month par call prior to maturity. UOP: GCP. Settlement date 5/4/2016.

IPTs: 3-year T+95-100bp, 10-year T+150bp area.

PRICE GUIDANCE: 3yr FXD T+80bp area, 10yr T+135bp area. Area is +/- 5bp. (The 3yr FRN dropped).

LAUNCH: US$2bn 2-part. US$750m 3yr FXD at T+75bp, US$1.25bn 10yr at T+130bp.

PRICED: US$2bn 2-part total.

- US$750m 1.676% cpn 3yr (5/03/2019) FXD. At 100, yld 1.676%. T+75bp. MWC+12.5bp.

- US$1.25bn 3.119% cpn 10yr (5/04/2026) FXD. At 100, yld 3.119%. T+130bp. MWC+20bp.

BOOK: US$9.8bn total; 3-year US$3.6bn, 10-year US$6.2bn

NIC (NasdaqGS: EGOV - news) : 3-year: negative 4bp (vs. 2.237% '19s at G+79bp)

10-year: 8bp (vs. 3.506% March 2025 at G+122bp)

COMPS:

BPLN (A2/A-) 2.237% May 10, 2019 at G+79bp

BPLN (A2/A-) 2.315% February 13, 2020 at G+78bp

BPLN (A2/A-) 4.500% October 1, 2020 at G+89bp (US$110)

BPLN (A2/A-) 3.506% March 17, 2025 at G+122bp

PHILIP MORRIS

Philip Morris International Inc (LSE: 0M8V.L - news) (PM), A2/A, announced a US$ benchmark SEC registered 2-part senior unsecured note offering that consists of a 7-year (5/10/2023) and a tap of the 4.25% 11/10/2044. Active bookrunners are Citigroup, HSBC and JPMorgan. Passive bookrunners are Barclays (LSE: BARC.L - news) , Santander and SocGen (Paris: FR0000130809 - news) . Use of Proceeds: GCP including refinancing of debt, working capital, and repurchase of common stock. Optional redemption: make-whole on 7-year; 2mo par call on 7yr. Settle: 5/10/2016.

IPTs: 7yr T+80bp area, 2044 tap T+130bp area

PRICE GUIDANCE: 7yr T+70bp area, 2044 tap T+120bp area. Area is +/- 2bp.

LAUNCH: US$1bn 2-part. US$500m 7yr at T+68bp, US$500m 2044 tap at T+118bp

PRICED: US$1bn 2-part total.

- US$500m 2.125% cpn 7yr (5/10/2023). At 99.002, yld 2.28%. T+68bp.

- US$500m tap 4.25% 11/10/2044. At 106.779, yld 3.856%. T+118bp

BOOK: US$4bn total; 7yr US$2.1bn, tap US$1.9bn

NIC: 7-year: 3bp (vs. 2.75% '26s at G+80bp, 15bp for 7/10s curve, FV=G+65bp)

2044 tap: Flat

COMPS:

PM (A2/A) 2.750% February 25, 2026 at G+80bp

PM (A2/A) 4.250% November 10, 2044 at T+118bp

USD HIGH-GRADE PIPELINE

Russian bank VNESHECONOMOBANK, Ba1/BBB-, announced plans for upcoming investor meetings in New York slated to begin on April 19.

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED, Aa2/AA-/AA-, is lining up for a potential US dollar 144A/Reg S subordinated Tier 2 deal. ANZ, Citigroup, HSBC and JP Morgan are arranging the meetings.

ROGERS COMMUNICATIONS (NYSE: RCI - news) filed an F-10 shelf registration on March 4 covering US$4bn of debt securities including US$2.25bn existing from a previous shelf.

MOLSON COORS, Baa2/BBB, expects to issue up to US$6.8bn in new debt to help fund its US$12bn acquisition of Miller beer brands from AB InBev.

(Reporting by Michael Gambale; Editing by Marc Carnegie)