US IG CLOSE-Nine high-grade issuers raise US$12.71bn

By Mike Gambale

NEW YORK, Sept 8 (IFR) - Below is a recap of primary issuance activity in the US high-grade market on Tuesday:

Number of deals priced: 9

Total (Swiss: FP.SW - news) issuance volume: US$12.71bn

Average new issue concession: 12.45

Average book to cover: 3.4

GOLDMAN SACHS GROUP INC

Goldman Sachs Group Inc, A3/A-/A (s/n/s), announced a US$ benchmark five-year (9/15/2020) fixed and/or FRN senior unsecured SEC (Shanghai: 603988.SS - news) -Reg self-led offering. UOP: GCP. Settlement date 9/15/2015.

IPT: 5-year FXD T+140bp area, 5-year FRN 3mL+equivalent.

PRICE GUIDANCE: 5-year FXD T+130bp area, 5-year FRN 3mL+123bp area. Area = (+/-3bp)

LAUNCH: US$1.75bn two-part deal.

- US$1.25bn 5-year FXD at T+127bp.

- US$500m 5-year FRN at 3mL+120bp.

PRICED: US$1.75bn 2-part total.

- US$1.25bn 2.75% cpn 5-year (9/15/2020) FXD. At 99.796, yld 2.794%. T+127bp

- US$500m 5-year (9/15/2020) FRN. At 100, floats at 3mL+120bp.

BOOK: US$6.33bn total; 5-year FRN US$730m, 5-year FXD US$5.6bn

NIC (NasdaqGS: EGOV - news) : 15bp (vs. 2.600% '20s at G+110bp, add a couple of basis points for maturity extension, FV=G+112bp)

COMPS:

GS 2.600% April 23, 2020 at G+110bp

GS 3.750% May 22, 2025 at G+150bp

HOME DEPOT (Swiss: HD.SW - news)

The Home Depot (NYSE: HD - news) (HD), A2/A/A, announced a US$ benchmark SEC registered multi-part senior unsecured note offering that includes a two-year (9/15/2017) fixed and/or FRN and a 10-year (9/15/25) fixed note.

The active bookrunners include Bank of America (Swiss: BAC.SW - news) , Deutsche Bank, JP Morgan and Morgan Stanley (Xetra: 885836 - news) . The notes contain a MWC and a 3mo par call on the 10-year tranche. Use of Proceeds General: corporate purposes, including the funding of the recently completed acquisition of Interline and repurchases of shares of our common stock, subject to market conditions and other business considerations. Settlement T+5 (Sep (Shanghai: 600021.SS - news) 15, 2015).

IPTs: 2yr FXD T+55-60bp, 2yr FRN Libor equiv, 10yr FXD T+130-135bp

PRICE GUIDANCE: 2-year FRN 3mL+40bp area, 10-year FXD T+120bp area (+/-3bp). 2-year fixed dropped.

LAUNCH: US$1.5bn 2-part.

- US$500m 2-year FRN at 3mL+37bp.

- US$1bn 10-year at T+117bp.

PRICED: US$1.5bn 2-part.

- US$500m. Cpn 3mL+37bp. Due 9/15/2017. Ip par. Yld 3mL+37bp.

- US$1bn. Cpn 3.35%. Due 9/15/2025. Ip US$99.857. Yld 3.367%. T+117bp.

BOOK: Total book US$6.5bn; 2-year FRN US$1.5bn, 5-year FXD US$5bn

NIC: 10-year FXD: 10bp

COMPS:

3.750% February 15, 2024 at G+107bp

4.250% April 1, 2046 at T+135bp

BTMU

Bank of Tokyo-Mitsubishi UFJ (A1/A+/A) announced a multi-tranche US dollar offering under 144A/Reg S. Structure consists of a three-year fixed and/or floating tranche and a five-year fixed tranche. Citigroup (NYSE: C - news) , JP Morgan, Morgan Stanley and Mitsubishi managed the deal.

IPT: 3-year FXD T+125bp area, 3-year FRN 3mL+equivalent, 5-year FXD T+135bp area.

PRICE GUIDANCE: 3-year FXD T+115bp area (+/-2bp), 3-year FRN 3mL+equivalent, 5-year FXD T+130bp area (+/-5bp).

LAUNCH: US$2bn 3-part total. US$500m 3yr FXD at T+113bp, US$500m 3yr FRN at 3mL+102bp, US$1bn 5yr FXD at T+125bp.

PRICED: US$2bn 3-part total.

- US$500m 2.15% cpn 3yr (9/14/2018) FXD. At 99.971, yld 2.160%. T+113bp. 1st pay: 3/14/2016.

- US$500m 3yr (9/14/2018) FRN. At 100, floats at 3mL+102bp

- US$1bn 2.75% cpn 5yr (9/14/2020) FXD. At 99.926, yld 2.766%. T+125bp. 1st pay: 3/14/2016.

BOOK: US$4.7bn total; 3yr FRN US$1.2bn, 3-year FXD US$1.6bn, 5-year US$1.9bn

NIC: 3-year: 5bp (vs. 1.7% '18s at G+108bp), 5-year: 13bp (vs. 2.3% '20s at G+112bp)

COMPS:

MUFG 1.700% March 5, 2018 at G+108bp

MUFG 2.300% March 5, 2020 at G+112bp

SUMIBK (A1/A+) 1.950% July 23, 2018 at G+95bp

SUMIBK (A1/A+) 2.650% July 23, 2020 at G+107bp

KEYCORP (NYSE: KEY - news)

KeyCorp (KEY), Baa1/BBB+/A-, announced a US$500m SEC registered 5-year senior unsecured notes. The active bookrunners include Goldman Sachs (NYSE: GS-PB - news) , JP Morgan, Keybanc and Morgan Stanley. UOP: GCP. Settle: 9/15/2015.

IPT: T+145-150bp

PRICE GUIDANCE: T+140bp area (+/-2.5bp)

LAUNCH: US$1bn (upsized from US$500m) at T+137.5bp.

PRICED: US$1bn 2.90% cpn 5yr (9/15/2020). At 99.982, yld 2.904%. T+137.5bp

BOOK: US$2bn

NIC: 17.5bp (vs. 2.25% '20s at G+115bp, add 5bp for maturity extension, FV=G+120bp)

COMPS:

KEY 1.700% June 1, 2018 at G+91bp

KEY 2.250% March 16, 2020 at G+115bp

KEY 3.300% June 1, 2025 at G+140bp

AUTOMATIC DATA PROCESSING (NasdaqGS: ADP - news)

Automatic Data Processing Inc (ADP), Aa3/AA, announced a US$ benchmark SEC registered 2-part senior notes that includes a 5-year and 10-year. Active bookrunners include JPMorgan (LSE: JPIU.L - news) and Bank of America. Passive bookrunners include BNP Paribas (Xetra: 887771 - news) , Citigroup, Morgan Stanley and Wells Fargo (Hanover: NWT.HA - news) as passive.

CoC: 101%. Par call: 1 month on 5yr, 3 months on 10yr. Use of Proceeds: Net proceeds of this offering will be used to effect previously announced share repurchases over the next 12 to 24 months subject to market conditions, and any remainder for general corporate purposes.

IPT: 5-year T+95bp area, 10-year T+140bp area

LAUNCH: US$2bn 2-part total. US$1bn 5yr at T+75bp, US$1bn 10yr at T+120bp.

PRICED: US$2bn 2-part total. First (Other OTC: FSTC - news) pay 3/15/2016. Settlement date 9/15/2015.

- US$1bn. Cpn 2.250%. Due 9/15/2020. Ip US$99.911. Yld 2.269%. T+75bp. MWC T+12.5bp

- US$1bn. Cpn 3.375%. Due 9/15/2025. Ip US$99.891. Yld 3.388%. T+120bp. MWC T+20bp.

BOOK: US$8.5bn; 5-year US$3.5bn, 10-year US$5bn

NIC: Debut offering

CANADIAN PACIFIC RAILWAYS

Canadian Pacific Railway Co (CP), Baa1/BBB+, announced a US$ benchmark 3-part senior unsecured notes that includes a new 20-year (9/15/2035), a tap of the 4.80% (8/01/2045), and a new 100-year (9/15/2115). Active bookrunners include Bank of America, HSBC, JPMorgan, Morgan Stanley and Royal Bank of Canada. Passive bookrunners include Citigroup and Wells Fargo.

The notes include a MWC, and 6mo par calls on all the tranches. Use of Proceeds For general corporate purposes, including the reduction and refinancing of short term and long term debt used to fund capital investments and share repurchases.

IPT: 20-year T+200bp area, 30-year tap T+210bp area, 100-year 6.25% area

PRICE GUIDANCE: 20-year at T+190 area (+/- 5 bps), 100-year at 6.125% - 6.250%. 30-year TAP tranche is dropped

LAUNCH: US$1.2bn 2-part. US$300m 20-year at T+185bp, US$900m 100-year at 6.125%.

PRICED: US$1.2bn 2-part total.

- US$300m 4.80% 20-year (9/15/2035). At 99.541, yld 4.836%. T+185bp. MWC+30bp. 1st pay: 3/15/2016.

- US$900m 6.125% cpn 100-year (8/01/2115). At 100, yld 6.125%. T+313.9bp. MWC+50bp. 1st pay: 3/15/2016.

BOOK: Total book US$3.25bn

NIC: 20-year: 15bp (vs. 2.9% 2025 at G+150bp, add 20bp for 10s/20s curve, FV=G+170bp)

COMPS:

CP 2.900% February 1, 2025 at G+150bp

CP 5.750% Jan 15, 2042 at T+194bp

CP 4.800% Aug 1, 2045 at T+188bp

JOHN DEERE CAPITAL CORP

John Deere Capital Corp (DE), A2/A, announced a US$ benchmark SEC registered 3-part offering that includes a 3-year (8/30/2018), 5-year (9/11/2020) and 10-year (9/11/2025). The active bookrunners include Citigroup, Goldman Sachs and HSBC. UOP: GCP. Settle: 9/11/2015.

IPTs: 3yr T+80bp area, 5yr T+105bp area, 10yr T+140bp area

PRICE GUIDANCE: 2yr FRN added 3mL+45bp, 3yr FXD T+77bp (+/- 2), 5yr FXD T+97bp (+/- 2), 10yr FXD T+127bp (+/- 2)

LAUNCH: US$1.5bn 4-part. US$350m 2yr FRN at 3mL+45bp, US$500m 3yr FXD at T+75bp, US$325m 5yr FXD at T+95bp, US$325m 10yr FXD at T+125bp.

PRICED: US$1.5bn 4-part.

- US$350m 2yr (7/11/2017) FRN. At 100, floats at 3mL+45bp.

- US$500m 1.75% 3yr (8/10/2018) FXD. At 99.902, yld 1.785%. T+75bp. MWC+10bp.

- US$325m 2.45% 5yr (9/11/2020) FXD. At 99.935, yld 2.464%. T+95bp. MWC+15bp.

- US$325m 3.40% cpn 10yr (9/11/2025) FXD. At 99.723, ylkd 3.433%. T+125bp. MWC+20bp.

BOOK: US$4.5bn total

NIC: 3-year: 7bp, 5-year: 12bp, 10-year: 15bp

COMPS:

1.350% January 16, 2018 at G+68bp

2.375% July 14, 2020 at G+83bp

3.350% June 12, 2024 at G+110bp

SANTANDER UK GROUP HOLDINGS

Santander UK Group Holdings plc (ABBEY (LSE: ABBY.L - news) ), exp ratings Baa2/BB+/A-, announced a US$ benchmark 144A/RegS 2-part Tier 2 subordinated notes that includes a 10-year (9/15/2025) and 30-year (9/15/2045). Joint Bookrunners: Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, Santander Investment Securities Inc., UBS Securities LLC. Settle: 9/15/2015.

IPTs: 10yr T+280bp area, 30yr T+295bp area

PRICE GUIDANCE: 10yr T+265bp area, 30yr T+275bp area. Area is +/- 5bp.

LAUNCH: US$1.5bn 2-part total. US$1bn 10yr at T+260bp, US$500m 30yr at T+270bp.

PRICED: US$1.5bn 2-part total.

- US$1bn 4.75% 10yr (9/15/2025). At 99.724, yld 4.785%. T+260bp

- US$500m 5.625% 30yr (9/15/2045). At 99.412, yld 5.666%. T+270bp.

BOOK: US$7.9bn total; 10-year US$4.9bn, 30-year US$3bn

COMPS:

Abbey (Baa2/BBB-) 5.00% November 2023 at G+232bp (BK)

BACR (Baa3/BB+) 4.375% November 2024 at G+270bp (HC)

Lloyds (Baa2/BBB-) 4.500% November 2024 at G+220bp (HC)

RABO (A3/BBB+) 4.375% August 2025 at G+210bp (BK)

HSBC (A2/BBB+) 4.250% August 2025 at G+217bp (HC)

HSBC (A2/BBB+) 5.250% March 2044 at T+215bp (HC)

RABO (A3/BBB+) 5.250% August 2045 at T+207bp (BK)

INDIANAPOLIS POWER & LIGHT

Indianapolis Power & Light Co (AES), A2/BBB+/BBB+, announced a US$260m (no grow) 144a/RegS (w/o reg rights) 30-year (9/01/2045) first mortgage bonds. Active bookrunners include Bank of America and US Bank. Co-Managers are FIFTH, BMO, HNTINV, MS, PNC. Optional Redemption: Make Whole Call & Par Call 6 month(s) prior to maturity. Use of Proceeds: Capital Expenditures, General Corporate Purpose. Settlement T+5 (Sep 15, 2015).

IPT: T+ hi 100s

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

LAUNCH: US$260m at T+175bp

PRICED: US$260m. Cpn 4.700%. Due 9/1/2045. Ip US$99.476. Yld 4.733%. T+175bp. MWC T+30bp.

BOOK: US$575m

NIC: 15bp (vs. AES 4.5% '44s at T+160bp)

COMPS:

AES 4.500% June 1, 2044 at T+160bp

ES (A2/A+/A) 4.150% June 1, 2045 at T+130bp

D (A2/A-/A-) 4.200% May 15, 2045 at T+131bp

NOT COUNTABLE

WELLS FARGO & COMPANY (Xetra: 857949 - news)

Wells Fargo & Company, expected ratings Baa2/BBB/BBB/A (s/n/s/s), announced a US$250m (10m shares, US$25 par) non-cumulative perpetual Class A preferred via sole bookrunner Wells Fargo. Joint-lead managers are Bank of America, Citigroup, Goldman Sachs, JPMorgan, Morgan Stanley, Royal Bank of Canada (Other OTC: RBCDF - news) and UBS (NYSEArca: FBGX - news) . Price talk is 6.00-6.125%. First pay 12/15/2015. Settlement date T+5.

IPT: 6.00-6.125%

PRICE GUIDANCE: 6.00% (the #)

LAUNCH: US$900m (upsized from US$250m) at 6.00% (Reporting By Michael Gambale; editing by Shankar Ramakrishnan)