US IG CLOSE-Eight high-grade issuers raise US$7.4bn

By Mike Gambale

NEW YORK, May 7 (IFR) - Below is a recap of primary issuance activity in the US high-grade market on Thursday:

Number of deals priced: 8

Total (Swiss: FP.SW - news) issuance volume: US$7.4bn

Average new issue concession: 8.19

Average book to cover: 3.66

BOSTON SCIENTIFIC

Boston Scientific Corp, BBB-/BBB-, announced a US$ benchmark SEC (Shanghai: 603988.SS - news) registered 3-part senior unsecured offering that includes a 5-year (5/15/2020), 7-year (5/15/2022), and 10-year (5/15/2025). The active bookrunners include Barclays (LSE: BARC.L - news) , Citigroup (NYSE: C - news) , Deutsche Bank and JP Morgan.

Optional Redemption: Make Whole Call; change of Control at US$101. Special Redemption: On 7yr tranche only - 101% call if AMS (Berlin: DQW1.BE - news) acquisition has not been completed before 12/31/2015. UOP: Acquisition Financing, Repay/Refinance Debt. Settle: 5/12/2015.

IPTs: 5yr T+145bp area, 7yr T+165bp area, 10yr at T+180bp area

PRICE GUIDANCE: 5yr T+135bp area, 7yr T+160bp area, 10yr T+175bp area. Area is +/- 5bp

LAUNCH: US$1.85bn 3-part. US$600m 5yr at T+130bp, US$500m 7yr at T+155bp, US$750m 10yr at T+170bp.

PRICED: US$1.85bn 3-part total

- US$600m 2.85% 5yr (5/15/2020). At 100, yld 2.85%. T+130bp. MWC+20bp

- US$500m 3.375% 7yr (5/15/2022). At 99.364, yld 3.478%. T+155bp. MWC+25bp

- US$750m 3.85% 10yr (5/15/2025). At 99.860, yld 3.867%. T+170bp. MWC+30bp.

BOOK: US$6bn

NIC (NasdaqGS: EGOV - news) : 5-year: 7bp (vs. 6% '20s at G+126bp, subtract 3bp for high dollar price, FV=G+123bp)

7-year: 5bp (7/10s curve worth 15bp, FV=G+150bp)

10-year: 5bp (vs. 4.125% '23s at G+155bp, add 10bp for maturity extension, FV=T+165bp)

COMPS:

6.000% January 15, 2020 at G+126bp (US$114.5)

4.125% October 1, 2023 at G+155bp

ZMH (Baa3/BBB) 2.700% April 1, 2020 at G+107bp

ZMH (Baa3/BBB) 3.150% April 1, 2022 at G+129bp

ZMH (Baa3/BBB) 3.550% April 1, 2025 at G+150bp

MDT (A3/A) 2.500% March 15, 2020 at G+63bp

MDT (A3/A) 3.150% March 15, 2022 at G+89bp

MDT (A3/A) 3.500% May 15, 2025 at G+105bp

BDX (Baa2/BBB+) 2.675% December 15, 2019 at G+86bp

BDX (Baa2/BBB+) 3.734% December 15, 2024 at G+130bp

SYK (A3/A+) 3.375% May 15, 2024 at G+114bp

TMO (Baa3/BBB) 2.400% February 1, 2019 at G+96bp

TMO (Baa3/BBB) 4.150% February 1, 2024 at G+132bp

BAX (A3/A-) 3.200% June 15, 2023 at G+131bp

STJ (Baa1/A) 3.250% April 15, 2023 at G+122bp

BANK OF AMERICA CORP

Bank of America Corp (BAC), Baa2/A-/A, announced a US$ SEC-registered 3-year (5/12/2018) Green Bond senior notes. Bank of America is sole book. UOP: fund renewable energy and energy efficiency projects. Settle: 5/12/2015.

IPT: T+100bp area

LAUNCH: US$600m T+95bp

PRICED: US$600m 1.95% 3yr (5/12/2018) Green Bond. At 99.994, yld 1.952%. T+95bp.

BOOK: Hearing around US$1.25bn

NIC: 10bp (add 25bp for maturity extension, FV=G+85bp)

COMPS:

1.350% November 21, 2016 at G+60bp

CHEVRON PHILLIPS CHEMICAL

Chevron Phillips Chemical Co LLC/LP (CHVPHC), A2/A-, announced a US$1.4bn (no grow) 144A/RegS (w/o reg rights) multi-part senior unsecured note offering that includes a 3-year (5/01/2018) fixed and/or FRN and a 5-year (5/01/2020) fixed and/or FRN. The active bookrunners include JP Morgan, Mizuho and Mitsubishi. Optional Redemption: Make Whole Call and a Par Call on the 5yr tranche. Use of Proceeds: Fund a distribution to CP Chemical's members. Settlement: May 12, 2015.

IPTs: 3-year FXD Low 80s, 3-year FRN 3mL+equivalent, 5-year FXD low 100s, 5-year FRN 3mL+equivalent.

PRICE GUIDANCE: 3yr FXD T+75bp area, 3yr FRN Libor equiv, 5yr FXD T+95bp area, 5yr FRN 3mL+equiv. Area is +/- 5bp.

LAUNCH: US$1.4bn 3-part. US$750m 3yr FXD at T+70bp, US$400m 5yr FXD at T+90bp, US$250m 5yr FRN at 3ml+75bp. (3yr FRN was dropped).

PRICED: US$1.4bn 3-part total.

- US$750m 1.70% 3yr FXD (5/01/2018). At 99.989, yld 1.704%. T+70bp. MWC+12.5bp.

- US$400m 2.45% 5yr FXD (5/01/2020). At 99.968, yld 2.457%. T+90bp. MWC+15bp.

- US$250m 5yr FRN (5/01/2020). At 100, floats at 3mL+75bp.

BOOK: Total book US$4.05bn; 3-year FXD US$1.5bn, 5-year FRN US$300m, 5-year FXD US$2.25bn

NIC: 3-year FXD: 10bp (3/5s curve worth 20bp, FV=G+60bp)

5-year FXD: 10bp (vs. DD 4.625% '20s at G+75bp, add 5bp for S&P one-notch differential, FV=G+80bp)

COMPS:

DOW (Baa2/BBB/BBB) 4.250% November 15, 2020 at G+89bp

DOW (Baa2/BBB/BBB) 4.125% November 15, 2021 at G+103bp

DOW (Baa2/BBB/BBB) 3.500% October 1, 2024 at G+133bp

DD (A2/A/A) 4.625% January 1, 2020 at G+75bp (US$110)

DD (A2/A/A) 3.625% January 15, 2021 at G+78bp

DD (A2/A/A) 2.800% February 15, 2023 at G+101bp

EMN (Baa2/BBB/BBB) 2.700% January 15, 2020 at G+95bp

EMN (Baa2/BBB/BBB) 3.800% March 15, 2025 at G+138bp

LYB (Baa1/BBB) 4.000% July 15, 2023 at G+130bp

MON (A3/BBB+/A-) 2.125% July 15, 2019 at G+67bp

MON (A3/BBB+/A-) 2.850% April 15, 2025 at G+105bp

PPG (Baa1/A-/A-) 2.300% November 15, 2019 at G+67bp

ANGLO AMERICAN CAPITAL

Anglo American Capital plc (AALLN), Baa2/BBB-, announced a US$ benchmark 2-part 144a/RegS offering that includes a 5-year (5/14/2020) and 10-year (5/14/2025). The active bookrunners are Citigroup, JP Morgan and Royal Bank of Canada (Other OTC: RBKDF - news) . Passive books are NAB, Scotia, TD Securities and Westpac. UOP: GCP.

IPTs: 5yr T+237.5bp area, 10yr T+287.5bp area

PRICE GUIDANCE: 5yr T+225bp area, 10yr T+287.5bp area. Area is +/- 12.5bp.

LAUNCH: US$1.5bn 2-part. US$850m 5yr at T+212.5, US$650m 10yr at T+275bp

PRICED: US$1.5bn 2-part total.

- US$850m 3.625% 5yr (5/14/2020). At 99.778, yld 3.674% T+212.5bp.

- US$650m 4.875% 10yr (5/14/2025). At 99.578, yld 4.929%. T+275bp.

BOOK: US$6bn total. 5-year US$3.6bn, 10-year US$2.4bn

NIC: 5-year: 12bp (5/7s curve worth 25bp, FV=G+201bp)

10-year: 19bp (7/10s curve worth about 30bp, FV=G+256bp)

COMPS:

4.125% April 15, 2021 at G+220bp

4.125% September 27, 2022 at G+226bp

ENLINK MIDSTREAM PARTNERS

EnLink Midstream Partners LP (ENLK), Baa3/BBB, announced a US$900m (no grow) SEC registered 2-part senior unsecured note offering that includes a 10-year (6/01/2025) and 30-year (4/01/2045).

The active books include Bank of America, Barclays and Deutsche Bank (Xetra: 514000 - news) . Passive books include BBVA, CACIB, MUFG, PNC, RBCCM, SUN and USB. 10yr tranche: Make Whole Call; Par Call: 3 month(s) prior to maturity. 30yr tranche: Make Whole Call; Par Call: 6 month(s) prior to maturity. UOP: To repay outstanding borrowings under our revolving credit facility, including all amounts borrowed in connection with the VEX Acquisition. Settle: 5/12/2015.

IPTs: 10-year Very low 200s, 30-year tap T+250bp area.

PRICE GUIDANCE: 10yr T+200-205bp, 30yr T+240-245bp

LAUNCH: US$900m 2-part. US$750m 10yr at T+200bp, US$150m 30yr at T+240bp.

PRICED: US$900m 2-part.

- US$750m 4.15% cpn 10yr (6/01/2025). At 99.827, yld 4.171%. T+200bp. MWC+30bp. 1st pay: 12/01/2015.

- US$150m 5.05% cpn 30yr (4/01/2045) tap. At 96.381, yld 5.292%. T+240bp. MWC+30bp. 1st pay: 10/01/2015.

BOOK: Just over US$2.5bn

NIC: 10-year: 12bp (vs. 5.60% '24s at G+178bp, add 10bp for maturity extension, FV=G+188bp)

30-year: 10bp (vs. 5.05% '45s at T+230bp)

COMPS:

2.700% April 1, 2019 at G+135bp

4.400% April 1, 2024 at G+178bp

5.600% April 1, 2044 at T+232bp

5.050% April 1, 2045 at T+230bp

PUGET ENERGY INC

Puget Energy Inc (PSD), Baa3/BBB-, announced a US$400m 144A/RegS (w/ reg rights) 10-year (5/15/2025) senior secured notes. Active bookrunners include Bank of America, Barclays and Mizuho.

Co-Managers: KEYBCM, WFS, BNYM, WMS. Optional Redemption Make Whole Call; Par Call: 3 month(s) prior to maturity. UOP: Repay outstanding term loans maturing in 2016 and 2017, pay a one-time special dividend to the parent company and sole shareholder, Puget Equico, and to pay related fees and expenses. Settle: 5/12/2015.

IPT: T+155-160bp

PRICE GUIDANCE: T+150bp area (+/- 3bp)

LAUNCH: US$400m at T+147bp

PRICED: US$400m 3.625% cpn 10yr (4/15/2025). At 99.867, 3.641% yld. T+147bp.

BOOK: US$1.05bn

NIC: Flat (vs. 5.625% '22s at G+132bp, subtract 5bp for high dollar price, FV=G+127bp. 7/10s curve worth 20bp, FV=G+147bp)

COMPS:

6.500% December 15, 2020 at G+119bp (US$118.7)

6.000% September 1, 2021 at G+117bp (US$117.2)

5.625% July 15, 2022 at G+132bp (US$115)

DTE (A3/BBB) 3.500% June 1, 2024 at G+126bp

ES (Baa1/A-) 3.150% February 15, 2025 at G+116bp

WEINGARTEN REALTY

Weingarten Realty Investors (WRI), Baa2/BBB, announced a US$250m (no grow) SEC registered 10-year (6/01/2025) senior unsecured notes. Active bookrunners include Bank of America, Jefferies, JP Morgan and Wells Fargo (Swiss: WFC.SW - news) . Optional Redemption Make Whole Call; Par Call: 3 month(s) prior to maturity. Use of Proceeds To repay a portion of the amount outstanding under the US$500m unsecured revolving credit facility. Settle: 5/14/2015.

IPT: T+190-195bp

PRICE GUIDANCE: T+180bp area (+/- 5bp)

LAUNCH: US$250m at T+175bp

PRICED: US$250m 3.85% 10-yr (6/01/2025). At 99.233, yld 3.943%. T+175bp.

BOOK: US$1.2bn

NIC: 4bp (vs. 4.45% '24s at G+171bp)

COMPS:

4.450% January 15, 2024 at G+171bp

3.500% April 15, 2023 at G+162bp

CMB (Shanghai: 600036.SS - news) (NY BRANCH)

China Merchants Bank Co. (NY Branch), Baa1/BBB+/BBB (s/s/s), announced a US$ 3-year senior unsecured note offering via joint-global coordinators Bank of America, Citigroup, HSBC, CMB and UBS (NYSEArca: FBGX - news) . Joint-bookrunners Wing Lung Bank Ltd and ANZ. Expected size US$500m (max). 144a/RegS. UOP: Working capital and GCP. Settlement date 5/14/2015.

IPT: T+170bp area

FINAL GUIDANCE: T+150bp area (+/-2.5bp)

LAUNCH: US$500m at T+147.5bp

PRICED: US$500m. Cpn 2.375%. Due 5/14/18. Ip US$99.684. Yld 2.485%. T+147.5bp.

BOOK: Just north of US$2.5bn

NIC: 2.5bp

COMPS:

CHINAM (Baa1/BBB+) 2.375% Jun 12, 2017 at G+145bp (Reporting by Michael Gambale; editing by Shankar Ramakrishnan)