US IG CLOSE-High-grade market prints US$13.5bn, led by banks

By Mike Gambale

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

Number of deals priced: 8

Total (Swiss: FP.SW - news) issuance volume: US$13.5bn

Average new issue concession: 8.33bp

Average book to cover: 3.37

PRICED DEALS:

UBS AG (NYSEArca: FBGX - news)

UBS AG, acting through its Stamford Branch, A2/A/A, announced a US$ benchmark 3(a)(2) 4-part senior unsecured bank note offering that includes 18mo floater, 3yr floater, 3yr fixed, and 5yr fixed. Maturity Date: 9/26/2016 | 3/26/2018 | 3/26/2018 | 3/26/2020. Sole Books: UBS Investment Bank. Settlement Date: T+3 (3/26/2015).

IPTs: 18-month FRN 3mL+50bp area, 3-year FXD T+100bp area, 3-year FRN 3mL+equiv, 5-year FXD T+100bp area

PRICE GUIDANCE: 18mo FRN 3mL+50bp (the #), 3yr FXD T+95bp area, 3yr FRN Libor equiv, 5yr FXD T+100bp area. Area is +/- 3bp.

LAUNCH: US$4.85bn 4-part. US$600m 18mo FRN at 3mL+50bp, US$2.5bn 3yr FXD at T+92bp, US$1bn 3yr FRN at 3mL+70bp, US$750m 5yr FXD at T+97bp.

PRICED: US$4.85bn 4-part total.

- US$600m 18mo (9/26/2016) FRN. At 100, floats at 3mL+50bp. 1st pay: 6/26/2015.

- US$2.5bn 1.80% 3yr (3/26/2018) FXD. At 99.869, yld 1.845%. T+92bp. 1st pay: 9/26/2015.

- US$1bn 3yr (3/26/2018) FRN. At 100, floats at 3mL+70bp. 1st pay: 6/26/2015.

- US$750m 2.35% 5yr (3/26/2020) FXD. At 99.977, yld 2.355%. T+97bp. 1st pay: 9/26/2015.

BOOK: About US$7bn

NIC (NasdaqGS: EGOV - news) : 3-year: 7bp

5-year: About 12bp

COMPS:

2.375% August 14, 2019 at G+85bp

HSBC HOLDINGS PLC (HKSE: 0005.HK - news)

HSBC Holdings plc, rated Baa3/Nr/BBB(exp), announced a US$ benchmark SEC-Reg perpetual nc10 (3/30/2025) subordinated contingent convertible securities via sole-bookrunner HSBC. Joint-lead managers are BBVA, BNP Paribas (LSE: 0HB5.L - news) , Scotia, BOC, CCB (HKSE: 0939-OL.HK - news) Int'l, CIBC, Citigroup (NYSE: C - news) , Commerzbank (Xetra: CBK100 - news) , Lloyds, Morgan Stanley (Xetra: 885836 - news) , Natixis (LSE: 0IHK.L - news) , SocGen (Paris: FR0000130809 - news) , UBS and Unicredit (Milan: UCG.MI - news) .

UOP: Issuer will use the net proceeds from the sale of the Securities for general corporate purposes and to further strengthen our capital base pursuant to requirements under CRD IV. Settlement date 3/30/2015.

IPT: 6.625% area

PRICE GUIDANCE: 6.50% area (+/- 12.5bp)

LAUNCH: US$2.25bn at 6.375%

PRICED: US$2.25bn 6.375% perp NC10 at 100. Floats at MS+436.8bp.

BOOK: US$16bn

NIC: Roughly 35bp

COMPS:

6.375% Perp NC10, with a call date in 2024, were trading bid-side at US$102.7 to yield 5.99% on Friday.

CREDIT SUISSE GROUP

Credit Suisse Group Funding (Guernsey) Limited, A2/BBB+/A, announced a US$ benchmark 144A/RegS (w/ reg rights) 2-part-offering that includes a 5-year (3/26/2020) and 10-year (3/26/2025) senior unsecured notes. Credit Suisse (LSE: 0QP5.L - news) is the sole bookrunner. Guarantor: Credit Suisse Group AG. UOP: GCP, includes lending to subsidiaries such as Credit Suisse AG (whether or not acting through one of its branches). Settle: (T+3) 03/26/2015.

IPTs: 5-year T+145bp area, 10-year T+195bp area.

PRICE GUIDANCE: 5yr T+137.5bp (the #), 10yr T+187.5bp (the #)

LAUNCH: US$4bn 2-part. US$1.5bn 5yr at T+137.5bp, US$2.5bn 10yr at T+187.5bp.

PRICED: US$4bn 2-part. 1st pay: 9/26/2015.

- US$1.5bn 2.75% 5yr (3/26/2020). At 99.949, yld 2.761%. T+137.5bp.

- US$2.5bn 3.75% 10yr (3/26/2025). At 99.76, yld 3.779%. T+187.5bp.

BOOK: 5-year: US$4bn, 10-year: US$6.25bn

NIC: Opco/Holdco differential for CS is +53bp

5-year: 2.5bp (vs. 4.375% '20s at G+82bp, add 53bp for opco/holdco differential, FV=G+135bp)

10-year: 1.5bp (vs. 3.625% '24s at G+133bp, add 53bp for opco/holdco differential, FV=G+186bp)

COMPS:

2.300% May 28, 2019 at G+84bp

4.375% August 5, 2020 at G+82bp

3.625% September 9, 2024 at G+133bp

POTASH CORP OF SASKATCHEWAN INC

Potash Corp of Saskatchewan Inc (POT), A3/A-, announced a US$500m (no grow) SEC-registered 10-year (4/01/2025) senior unsecured notes. Bookrunner Active: Bank of America (Swiss: BAC.SW - news) , Royal Bank of Canada, Goldman Sachs (NYSE: GS-PB - news) and HSBC.

Optional Redemption: Make Whole Call; Par Call: 3 month(s) prior to maturity. Use of Proceeds GCP which may include the redemption of the 3.750% notes maturing September 30, 2015 although Potash is not required to redeem the 3.750% notes prior to maturity. Settlement T+3 (Mar 26, 2015).

IPTs: T+125-130bp

PRICE GUIDANCE: T+115-120bp

LAUNCH: US$500m at T+115bp

PRICED: US$500m 3.0% 10yr (4/01/2025). At 99.52, yld 3.056%. T+115bp. 1st pay: 10/01/2015.

BOOK: US$1.65bn

NIC: 3bp (vs. 3.625% '24s at G+102bp, add 10bp for 1-year maturity extension, FV=G+112bp)

COMPS:

3.625% March 15, 2024 at G+102bp

AGU (Baa2/BBB) 3.375% March 15, 2025 at G+145bp

MOS (Baa1/BBB) 4.25% November 15, 2023 at G+152bp

KIMCO REALTY CORP

Kimco Realty Corp (KIM), Baa1/BBB+, announced a US$350m SEC registered 30-year (4/01/2045) senior unsecured notes. Bookrunner Active: Bank of America and Barclays (LSE: BARC.L - news) . Passive bookrunners include JP Morgan, Morgan Stanley and Royal Bank of Canada. The notes contain a MWC and 6mo par call.

UOP: for GCP, including to (i) pre-fund near-term maturities, including one or more of the (a) US$184.2m of mortgage debt maturing during the remainder of 2015, (b) $100 million 5.25% Senior Notes due September 2015 and (c) $150 million of 5.584% Senior Notes due November 2015 and (ii) partially reduce borrowings under our revolving credit facility maturing in March 2018 (subject to two six-month extension options), which borrowings bear interest at a rate of one-month LIBOR plus 0.925% (1.09% as of December 31, 2014). Settle: 3/30/2015.

IPTs: T+185-190bp

PRICE GUIDANCE: T+185bp area (+/- 5bp)

LAUNCH: US$350m at T+180bp.

PRICED: US$350m 4.25% 30yr (4/01/2045). At 98.945, yld 4.313%. T+180bp. MWC+30bp. 1st pay: 10/01/2015.

BOOK: Just over US$600m

NIC: 9bp (vs. 3.125% '23s at G+136bp, 10/30s curve worth 35bp, FV=T+171bp)

COMPS:

5.700% May 1, 2017 at G+89bp

4.300% February 1, 2018 at G+97bp

6.875% October 1, 2019 at G+107bp (US$118)

3.200% May 1, 2021 at G+120bp

3.125% June 1, 2023 at G+136bp

SPG (A2/A) 3.375% October 1, 2024 at G+124bp

SPG (A2/A) 4.250% October 1, 2044 at T+150bp

FRT (A3/A-) 3.950% January 5, 2024 at G+124bp

FRT (A3/A-) 4.500% December 1, 2044 at T+155bp

WFDAU (A3/BBB+) 2.700% September 17, 2024 at G+150bp

WFDAU (A3/BBB+) 4.750% September 17, 2044 at T+169bp

EQR (Baa1/BBB+) 3.000% April 15, 2023 at G+117bp

EQR (Baa1/BBB+) 4.500% July 1, 2044 at T+155bp

VTR (Baa1/BBB+) 3.500% February 1, 2025 at G+152bp

VTR (Baa1/BBB+) 4.375% February 1, 2045 at T+174bp

SOUTHWESTERN ELECTRIC POWER CO.

Southwestern Electric Power Company (AEP), Baa2/BBB/BBB, announced a US$400m SEC registered 30-year (4/01/2045) senior unsecured notes. The active bookrunners include Mizuho and UBS, with Citigroup and Scotia as passive bookrunners. UOP: GCP including the repayment of Senior Notes due in 2015. Optional Redemption: MWC, 6-month par call. Settle: 3/26/2015.

IPT: T+155bp area

PRICE GUIDANCE: T+145-150bp

LAUNCH: US$400m at T+145bp

PRICED: US$400m 3.90% 30yr (4/01/2045). At 99.108, yld 3.951%. T+145bp. MWC+25bp. 1st pay: 10/01/2015.

BOOK: US$725m

NIC: Flat

COMPS:

6.200% March 15, 2040 at T+145bp

HYUNDAI CAPITAL SERVICES

Hyundai Capital Services has announced an offering of US$ 5.5-year senior unsecured bonds. The 144A/Reg S benchmark bonds, are expected to be rated on par with the issuer at Baa1/A- (Moody's/S&P). ANZ, Bank of America Merrill Lynch, Citigroup and Deutsche Bank (LSE: 0H7D.L - news) are the joint bookrunners.

IPT: T+145bp

PRICE GUIDANCE: T+130bp area

LAUNCH: US$400m at T+125bp

PRICED: US$400m 2.625% cpn 5.5-yr (9/29/2020). At 99.848, yld 2.655%. T+125bp

BOOK: US$2.5bn

NIC: 5bp (vs. 2.60% '20s, add 5bp for maturity differential, FV=G+120bp)

COMPS:

2.000% March 19, 2018 at G+99bp

2.600% March 19, 2020 at G+115bp

DAIGR (A3/A-/A-) 2.250% March 2, 2020 at G+72bp

WOORIB (A1/NR/A-) 2.625% July 22, 2020 at G+94bp

BOC AVIATION

BOC Aviation Pte Ltd, issuer rated A-/A-, exp issue rating BBB+/A-, announced a 144A/Reg S USD 5-year benchmark bond offering. BOCI, Citigroup, HSBC and JP Morgan are managing the issue. This will be BOC Aviation's first drawdown from its newly established global MTN programme. Settle: 3/30/2015.

IPT: T+190bp area

FINAL GUIDANCE: T+170-175bp

LAUNCH: US$750m at T+170bp

PRICED: US$750m 3.0% 5yr (3/30/2020). At 99.458, yld 3.118%. T+170bp. 1st pay: 9/30/2015.

BOOK: US$5.5bn

EXTRA DETAILS: Accounts: 284

- Geographic Dist: US 50%, Asia 39%, Europe/ME 11%

- Buyer Breakdown: FM 72%, Bank 13%, Ins/Pens 12%, PB 3%

NIC: Debut US$ offering (Reporting by Michael Gambale; editing by Shankar Ramakrishnan)