US IG CLOSE-Four issuers raise US$9.05bn in high-grade market

* January 2017 biggest all-time; US$130.033bn

* Aercap upsized to US$600m; 5 times covered

* MidAmerican over 3 times covered

* Most actively traded: BAC 3.824% '28s

By Mike Gambale

NEW YORK, Jan 23 (IFR) - Below is a recap of primary issuance activity in the US high-grade market on Monday:

Number of deals priced: 4

Total (LSE: 524773.L - news) issuance volume: US$9.05bn

Average new issue concession: 2.57

Total book to cover: 2.31

AERCAP

AerCap Ireland Capital Designated Activity Company/AerCap Global Aviation Trust, Ba1/BBB-/BBB-, announced a US$500m 5.25-year (5/26/22) senior unsecured notes. Active books: BAML, Citi, GS, JPM (B&D). Passive books: BARC, Credit Agricole (Swiss: ACA.SW - news) , CS, DB, MIZ, MS, RBC. Notes contain CoC, MWC, 1mo par call prior to maturity. UoP: GCP. Settle: 01/26.

IPTs: T+200bp area

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

LAUNCH: US$600m (upsized from US$500m) at T+170bp

PRICED: US$600m 3.50% cpn 5.25-yr (5/26/22). At 99.676, yld 3.568%. T+170bp. MWC+30bp.

BOOK: US$3bn (US$4bn at top)

NIC (NasdaqGS: EGOV - news) : Flat (vs. 3.95% '22s at G+170bp)

COMPS:

AERCAP 3.950% February 1, 2022 at G+170bp

BB&T

Branch Banking & Trust Co (BBT), A1/A/A+, announced a US$ benchmark 3(a)2 multi-part senior unsecured note offering of a 3-year fixed and/or FRN and a 5-year fixed and/or FRN. Active books: BARC, BB&T, MS and RBC. Notes contain 1mo par call prior to maturity. UoP: GCP. Settle: 1/26.

IPTs: 3yr FXD, T+hi 70s; 3yr FRN, 3mL equiv; 5yr FXD, T+hi 80s; 5yr FRN L equiv

GUIDANCE: 3yr FXD T+70bp area (+/- 2bp), 3yr FRN L equiv, 5yr FXD T+80bp area (+/- 2bp), (dropped 5yr FRN)

LAUNCH: US$2.6bn 3-part. US$1bn 3yr FXD at T+68bp, US$600m 3yr FRN at 3mL+45bp, US$1bn 5yr FXD at T+78bp

PRICED: US$2.6bn 3-part total.

- US$1bn 2.10% cpn 3yr (1/15/20) FXD. At 99.992, yld 2.103%. T+68bp. Benchmark spot: 99-27+ / 1.423%

- US$600m 3yr (1/15/20) FRN. At 100, floats at 3mL+45bp

- US$1bn 2.625% cpn 5yr (1/15/22) FXD. At 99.931, yld 2.640%. T+78bp. Benchmark spot: 100-21 / 1.860%

BOOK: Total US$3.75bn; 3yr FRN US$750m, 3yr FXD US$1.4bn, 5yr US$1.6bn

NIC: 3-year FXD: 3bp (3/5s curve worth 10bp, FV=G+65bp)

5-year: 3bp (vs. 2.05% '21s at G+73bp, add 2bp for maturity extension, FV=G+75bp)

COMPS:

BBT 2.050% May 10, 2021 at G+73bp

GOLDMAN SACHS (NYSE: GS-PB - news)

Goldman Sachs Group, rated A3/BBB+/A (s/s/s), announced a USD benchmark 3-part senior unsecured global note self-led offering of a 5yr NC4 fixed and/or 5yr (4/26/22) NC4 floater, and a 10yr (1/26/27) NC9 fixed. Par calls apply, including make-whole call on or after 7/26/17, excluding any par call dates (on fixed tranches only). UoP: GCP. Settle: 1/26.

IPTs: 5yr NC4 FXD, T+135bp area; 5yr NC4 FRN, 3mL equiv; 10yr NC9, T+165bp area

GUIDANCE: 5NC4 fixed T+120bp (#), 5NC4 FRN 3mL+equiv, 10NC9 T+150bp area (+/- 2bp).

LAUNCH: US$5bn 3-part. US$2.25bn 5NC4 fixed at T+120bp, US$1bn 5NC4 FRN at 3mL+111bp, US$1.75bn 10NC9 at T+148bp

PRICED: US$5bn 3-part total.

- US$2.25bn 3.0% cpn 5NC4 fixed. At 99.680, yld 3.067%. T+120bp. MWC+20bp.

- US$1bn 5NC4 FRN. At 100, floats at 3mL+111bp

- US$1.75bn 3.85% cpn 10NC9. At 99.720, yld 3.884%. T+148bp. MWC+25bp.

BOOK: Total US$11bn; 5-year FXD US$4.5bn, 5-year FRN US$1.5bn, 10-year nc9 US$5bn

NIC: 5-year NC4: 5bp (vs. 2.35% '21s at G+115bp)

10-year NC9: Flat (vs. 3.5% '26s NC9 at G+148bp)

COMPS:

GS 2.350% November 15, 2021 NC4 at G+115bp

GS 3.500% November 16, 2026 NC9 at G+148bp

MIDAMERICAN ENERGY

MidAmerican Energy Co (BRKHEC), Aa2/A+/A+, announced a US$850m (no-grow) SEC (Shanghai: 603988.SS - news) -registered 1st mortgage bonds 2-part senior note offering of a 10yr (5/01/27) Green bond and a 30yr (8/01/47) Green bond. Active books: BARC, BNP (Paris: FR0000131104 - news) , Citi, MIZ and USB. UoP: Finance capex, disbursed from 2/2/16 to 2/01/17, with respect to investments in company's 551 Megawatt Wind X and 2,000 Megawatt Wind XI projects, which were previously financed with the company's general funds. Settle: 2/1.

IPTs: 10yr, T+85-90bp; 30yr, T+110-115bp

GUIDANCE: 10yr T+75bp area, 30yr T+100bp area. Area is +/- 5bp

LAUNCH: US$850m 2-part. US$375m 10yr at T+70bp, US$475m 30yr at T+95bp

PRICED: US$850m 2-part total.

- US$375m 3.10% cpn 10yr (5/01/27). At 99.968, yld 3.104%. T+70bp

- US$475m 3.95% cpn 30yr (8/01/47). At 99.859, yld 3.958%. T+95bp

BOOK: Total US$3.175bn; 10-year US$1.275bn, 30-year US$1.9bn

NIC: 10-year: 6bp (vs. 3.5% '24s at G+60bp, add 4bp for maturity extension, FV=G+64bp)

30-year: 1bp (vs. 4.25% '46s at T+94bp)

COMPS:

BRKHEC 3.500% October 15, 2024 at G+60bp

BRKHEC 4.250% May 1, 2046 at T+94bp

USD HIGH-GRADE PIPELINE

Embraer SA (Sao Paolo: R2:EMBR3S.SA - news) , BBB/BBB-, through Embraer Netherlands Finance BV asked joint leads BB Securities, JP Morgan and Santander to arrange investor meetings in US and Europe to begin Monday in London, Boston and Los Angeles for a 10-year dollar-denominated senior unsecured benchmark offering. Roadshow (HKSE: 0888-OL.HK - news) concludes Tuesday in New York and Chicago.

International Company for Water and Power Projects (ACWA Power), is considering benchmark USD senior secured 144A/Reg S offering with expected investment-grade ratings.

Canara Bank (BSE: CANBK.BO - news) mandated BAML, Barclays (LSE: BARC.L - news) , BNP Paribas (LSE: 0HB5.L - news) , Citigroup (NYSE: C - news) , HSBC, JP Morgan and Credit Agricole as joint lead managers for a senior unsecured US dollar 144A/Reg S offering. (Reporting by Mike Gambale; Editing by Marc Carnegie and Shankar Ramakrishnan)