US IG CLOSE-Two high-grade trades raise US$2bn

By Mike Gambale

NEW YORK, July 21 (IFR) - Below is a recap of primary issuance activity in the US high-grade market on Tuesday:

Number of deals priced: 2

Total (Swiss: FP.SW - news) issuance volume: US$2bn

Average new issue concession: 4bp

Average book to cover: 2.54

ABN AMRO BANK

ABN AMRO Bank NV (ABNANV), Baa3/BBB-/A-, announced a US$ benchmark 144A/RegS (w/o reg rights) 10-year subordinated bank notes. The active bookrunners include Bank of America (Swiss: BAC.SW - news) , Citigroup (NYSE: C - news) , Goldman Sachs (NYSE: GS-PB - news) , JP Morgan and Morgan Stanley (Xetra: 885836 - news) . Co-Managers ABN. UOP: GCP. Settle: 7/28/2015.

IPT: T+265bp area

PRICE GUIDANCE: T+250bp area (+/-5bp)

LAUNCH: US$1.5bn at T+245bp

PRICED: US$1.5bn 4.75% cpn 10yr (7/28/25). At 99.732, yld 4.784%. T+245bp.

BOOK: US$5.5bn

NIC (NasdaqGS: EGOV - news) : 4bp (vs. INTNED 5.8% '23s at G+221bp, 8/10s curve worth 15bp, FV=G+236bp. Add 5bp for notch Moody's/S&P differential, FV=G+241bp)

COMPS:

INTNED (Baa2/BBB/A-) 5.800% September 25, 2023 at G+221bp (sub) ABN trades flattish to INTNED in USD Sr

ACAFP (Baa3/BBB/A-) 4.375% March 17, 2025 at G+240bp (sub)

ABN trades 17 bp tighter than ACAFP in 5 yr Sr

ROYAL BANK OF CANADA (Toronto: RY-PB.TO - news)

Royal Bank of Canada (RY), Aaa/AAA/AAA, announced a US$500m (no grow) SEC (Shanghai: 603988.SS - news) registered 3-year (7/23/2018) floating rate covered bond. The joint (NasdaqCM: JYNT - news) books include Royal Bank of Canada and HSBC. Guarantor: RBC Covered Bond Guarantor Limited Partnership. Settle: 7/23/2015.

IPT: 3mL+low 30s

LAUNCH: US$500m at 3mL+30bp

PRICED: US$500m 3yr (7/23/2018) FRN. At 100, floats at 3mL+30bp.

BOOK: US$700m (Reporting by Michael Gambale; Editing by Varghese Joseph)