US IG CLOSE-Twelve high-grade issuers raise US$14bn

By IFR Reporters

NEW YORK, Aug 10 (IFR) - Below is a recap of primary issuance activity in the US high-grade market on Monday:

Number of deals priced: 12

Total (Swiss: FP.SW - news) issuance volume: US$14bn

Average new issue concession: 7.36

Average book to cover: 2.52

SIMON PROPERTY GROUP

Simon Property Group, L.P., A2/A (s/s), announced a US$ benchmark two-part notes via CITI/RBS (LSE: RBS.L - news) /UBS (NYSEArca: FBGX - news) .

IPTs: 5yr Low 100s, 10yr Mid-high 140s

PRICE GUIDANCE: 5yr T+95bp area, 10yr T+140bp area (+/- 5bp)

LAUNCH: US$1.1bn total. US$500m five-year at T+90bp; US$600m 10-year at T+135bp

PRICED: US$1.1bn total.

- US$500m 5-year (Sep (Shanghai: 600021.SS - news) 1 2020) at T+90bp; 99.943 at 2.5% coupon, 2.512% yield.

- US$600m 10-year (Sep 1 2025) at T+135bp; 99.354, 3.5% coupon, 3.577% yield. sett Aug 17 2015

BOOK: 5-year: US$925m; 10-year: US$775m

NIC (NasdaqGS: EGOV - news) : 5-year: 10bp; 10-year: 8bp

COMPS:

2019s at G+79bp

2020s at G+82bp (USD 113)

September 2024s at G+127bp

October 2024s at G+125bp

AMERICAN WATER CAPITAL CORP

American Water Capital Corp, A3/A/A (s/s/s), announced a US$550m two-part SEC-Reg senior unsecured notes via JPM/MUFG/WFS/UBS(act)/REGF/BSSA (pass)

IPTs: 10-year tap T+130bp area, 30-year T+165bp area.

PRICE GUIDANCE: 10-year tap: 125bp area; 30-year: 150bp area

LAUNCH: US$225m 10-year tap at T+120bp area; US$325m 30-year at 145bp area.

PRICED: US$550m total:

- US$225m 10-year tap at T+120bp; 99.667. 3.4% coupon, 3.441% yield.

- US$325m 30-year at T+145bp, 98.684, 4.3% coupon, 4.379% yield.

BOOK: US$1.6bn total; US$550m-tap; US$1.05bn: 30-year.

NIC: 10-year: 7bp; 30-year: 3bp

COMPS:

AWK 3.4% 2025 at T+113bp, G+117bp US$100.6

AWK 4.3% 2042 at T+142bp US$100.3

BARCLAYS PLC (LSE: BARC.L - news)

Barclays PLC, Baa3/BBB/A (s/s/s), announced a US$ benchmark 30-year senior unsecured self-led note offering.

UOP: GCP.

Settlement date: 8/17/15.

IPTs: T+250bp area

PRICE GUIDANCE: T+240bp area (+/-5bp)

LAUNCH: US$1.5bn 30-year at T+235bp

PRICED: US$1.5bn 30-year (Aug 17 2045) at T+235bp; 5.25% coupon, 5.266% yield, 99.76. sett: T+5

BOOK: Undisclosed

NIC: 30-year: 13bp (10s/30s curve about 15bp added to 2025s for FV: 222bp)

COMPS:

3.65% 2025 at G+207bp (US$95)

CS 3.75% March 2025 at G+194bp (US$97)

CS 4.875% May 2045 at T+208bp (US$99.41)

ING BANK

ING Bank, A1/A/A (s/s/s), announced a four-part US$ 3-year fixed/floating and 5-year fixed/floating senior notes via HSBC, ING, JPM, UBS and WFS.

IPTs: 3yr FXD T+105-110bp, 3yr FRN 3mL+equivalent, 5yr FXD T+115-120bp, 5yr FRN 3mL+ equivalent

PRICE GUIDANCE: 3-year FXD at T+105bp (+/-5bp), 5-year FXD at T+115bp (+/-5bp), 3 and 5-year Libor equivalent.

LAUNCH: US$2.5bn total: US$1bn 3-yr FXD at T+100bp, US$750m 5-yr at T+110bp, US$500m 3-yr at FRN at 3ML+78bp, US$250m 5-yr at FRN at 3ML+97bp

PRICED: US$2.5bn total.

- US$1bn 3-yr FXD; 99.939; 2.05%C; 2.071%Y; T+100bp,

- US$750m 5-yr FXD; 99.93; 2.71%C; 2.715%Y; T+110bp,

- US$500m 3-yr FRN; par; 3ML+78bp,

- US$250m 5-yr FRN; par; 3ML+97bp.

BOOK: US$4.5bn

NIC: 5-year: 10bp-15bp; 3-year: 10bp-15bp

COMPS:

INTNED 2.45% 2020 at G+95bp

LLOYDS BANK PLC

Lloyds Bank Plc, A1/A/A+ (p/s/s), announced a US$ benchmark multi-tranche SEC-Reg senior unsecured note offering via BAML/CITI/GS (KSE: 078935.KS - news) (B&D)/LLOYDS/MS/RBC (Other OTC: RBCI - news) (3yr fxd only). Structure consists of a 3-year (8/17/18) FXD and/or FRN, and a 5-year (8/17/20) FXD.

UOP: GCP.

Settlement date: 8/17/15.

IPTs: 3-year FXD T+105-110bp, 3-year FRN 3mL+equivalent, 5-year FXD T+115-120bp.

PRICE GUIDANCE: 3yr FXD T+100bp (the #), 3yr FRN 3mL+78bp (the #), 5yr FXD T+110bp (the #)

LAUNCH: US$2bn total: US$700m 3-year fixed at T+100bp; US$300m 3-year FRN at L+78bp; US$1bn 5-year fixed at T+110bp

PRICED: US$2bn total.

- US$700m 3-year at T+100bp, 2% coupon, 2.068% yield;

- US$1bn five-year at T+110bp, coupon 2.7%, yield 2.712%;

- US$300m 3-year FRN at 3mL+78bp

BOOK: 3-year floater US$450m; 3-year fixed US$1.1bn; 5-year US$1.8bn

NIC: 3-year: 10bp (fair value about 88bp; 3s/5s about 10bp); 5-year 12bp (vs 2019s at G+98bp)

COMPS:

LLOYDS 2.4% 2019 at G+98bp

DISCOVER BANK

Discover Bank, Baa3/BBB/BBB+ (s/p/s), announced a US$ benchmark 3-yr unsecured unsubordinated 3(a)(2) notes via BARC/CS/DB/RBC. Co-managers are MUFJ/WILL.

IPTs: T+165bp area

PRICE GUIDANCE: T+160bp area (+/- 5bp)

LAUNCH: US$1bn 3-year at T+155bp

PRICED: US$1bn three-year (11/13/2018) at T+155bp; 99.938, coupon 2.6%, yield 2.618%.

Settlement date: 8/13/2015

BOOK: US$1.8bn

NIC: 3-year: 10bp

COMPS:

Jun 2020s at G+153bp

Feb 2018s at G+144bp

DUKE ENERGY PROGRESS

Duke Energy Progress, Aa2/A/A+ (n/s/s), announced a two-part US$1bn SEC-Reg FMB via CS, RBC, STRH, UBS and WFS.

IPTs: 10yr T+115-120bpa, 30yr T+140-145bpa

PRICE GUIDANCE: 10yr T+110bp area (+/-5bp); 30yr T+135bp area (+/-5bp)

LAUNCH: US$500m 10-year at T+105bp; US$700m 30-year at 130bp

PRICED: Total US$1.2bn.

- US$500m 10-year (Aug 15 2025) at T+105bp 3.25% coupon, 3.286% yield, 99.695.

- US$700m 30-year (Aug 15 2045) at T+130bp; 4.2% coupon, 4.23% yield, 99.493. Sett 8/13/2015

BOOK: 10-year: US$900m; 30-year: US$1.4bn

NIC: 10-year: flat; 30-year: 2-3bp

COMPS:

4.15% 12/1/2044 at T+126bp

4.375% 3/30/2044 at T+128bp

3.75% 6/1/2045 at T+116bp Aa2/A Carolinas

XEL 4.00% 8/15/2045 at T+117bp Aa3/A Nthn Sts Pwr-MN

DUK 2.80% 5/15/2022 at T+75bp G+103bp

SRE 3.2% 6/15/2025 at T+96bp G+98bp Aa2/A+ So Cal Gas Co

DTE 3.375% 3/1/2025 at T+99bp G+103bp Aa3/A DTE Elec Co

THE BANK OF NEW YORK MELLON

The Bank of New York Mellon Corp, A1/A+, announced a US$ benchmark SEC-Reg 5-year senior unsecured note offering via BAML/BARC/BK/JPM/WFS.

IPTs: 5yr FXD T+115bp area, 5yr FRN 3mL+equivalent

PRICE GUIDANCE: 5yr FXD T+105bp area, 5yr FRN libor equiv.

LAUNCH: US$1.4bn total: US$300m five-year FRN at 3mL+87bp; US$1.1bn five-year fixed at T+100bp

PRICED: US$1.4bn total.

- US$1.1bn 5-year (8/17/2020) at T+100bp; 99.953, 2.6% coupon, 2.61% yield

BOOK: US$3.275bn total. 5-year FRN: US$875m; 5-year fixed: US$2.4bn

DELTA AIR LINES (NYSE: DAL - news)

Delta Air Lines announced a US$381.973m two-part SEC-Reg through certificates Series 2015-1 via CS/MS (act). Joint-books are CITI/DB/GS. Passive books are BNP (Paris: FR0000131104 - news) /CA (NasdaqGS: CA - news) /NATX. Collateral: 15 Boeing (NYSE: BA - news) 737-900ERs (delivered SEP 2013 to FEB 2014)

IPTs: Class "AA", rated Aa3/AA, Expected maturity 7/30/27. Avg life 8.9-years. IPT: High 3s. Class "A", rated A1/A+, Expected maturity 7/30/27. Avg life 8.9-years. IPT: 4.125-4.25%.

PRICE GUIDANCE: Class AA: 3.75% +/- .125; Class A: 4% +/- .125; Class B: 4.375% +/- .125%

LAUNCH: US$312.524m Class AA: 3.625%; US$69.449m Class A: 3.875%; $118.027m Class B: 4.25%

PRICED: US$500m three-part EETC Pass Through Certificates.

- US$312.524m Class AA 12-year (07/30/2027), avg life 8.9 years. At 100, 3.625% yld.

- US$69.449m Class A 12-year (07/30/2027), avg life 8.9 years. At 100, 3.875% yld.

- US$118.027m Class B eight-year (07/30/2023), avg life 5.9 years. At 100, 4.25% yld.

BOOK: AA: US$1.7bn; A: US$500m; BB: US$300m

PACCAR FINANCIAL GROUP

Paccar Financial Group, A1/A+ (s/s), announced a US$500m two-part SEC-Reg senior unsecured note offering via JPM/RBC/USB/WFS.

IPTs: 3yr FXD T+80bp area, 5yr FXD T+95bp area

PRICE GUIDANCE: 3yr FXD T+70-72bp area, 5yr FXD T+90bp area.

LAUNCH: US$500m total: US$250m 3-year at T+70bp; US$250m 5-year at 90bp

PRICED: US$500m total.

- US$250m 3-year (Aug 14 2018) at T+70bp, 99.924, 1.75% coupon, 1.776% yield;

- US$250m 5-year (Aug 14 2020) at T+90bp, 99.907, 2.5% coupon, 2.52% yield.

BOOK: Over US$1bn

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

HSBC Holdings PLC, A2/A+, announced a US$ benchmark 10-year subordinated self-led offering. UOP: GCP.

IPT: T+220-225bp

PRICE GUIDANCE: T+215bp (+/-3bp)

LAUNCH: US$1.5bn subordinated 10-year at T+212bp

PRICED: US$1.5bn subordinated 10-yr: 99.18; 4.25%C; 4.352%Y; T+212bp

BOOK: Undisclosed

REGENCY CENTERS

Regency Centers LP, Baa1/BBB/BBB (s/p/p), announced a US$250m (no grow) 10-year SEC-Reg senior unsecured note offering via BAML/JPM (act)/USB/WFS (pass).

IPTs: T+190bp area

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

LAUNCH: US$250m at T+175bp

PRICED: US$250m Nov 1 2025 at T+175bp; 99.264, 3.9% coupon, 3.989% yield

BOOK: Undisclosed (Reporting by IFR; editing by Marc Carnegie)