HIGHGRADE CLOSE-Four issuers raise US$6.4bn in IG primary

* CK Hutchison debuts with US$1.25bn bond

* Most actively traded: Molson 3% 2026s

* Monthly issuance: US$140.084bn

* Volumes now US$3.8bn away from Sept record

* Viacom (Frankfurt: A0HM1Q - news) and Fortis (Frankfurt: 881347 - news) expected to come Thursday

By Mike Gambale

NEW YORK, Sept 28 (IFR) - Below is a recap of primary issuance activity in the US high-grade market on Wednesday:

Number of deals priced: 4

Total (LSE: 524773.L - news) issuance volume: US$6.4bn

Average new issue concession: 1.75

Average book to cover: 2.72

HSBC HOLDINGS (Frankfurt: 923893 - news)

HSBC Holdings PLC (HSBC), A1/A/AA (Frankfurt: A116XA - news) -, announced a US$ benchmark SEC (Shanghai: 603988.SS - news) registered senior unsecured notes offering that includes a long 5-year (1/05/2022) fixed and FRN tranches. HSBC is sole book. UOP: GCP. Settle: 10/05/2016.

IPTs: 5yr FXD T+170bp area, 5yr FRN Libor equiv

PRICE GUIDANCE: 5yr FXD T+155bp (#), 5yr FRN 3mL+150bp (#)

LAUNCH: US$3.75bn 2-part. US$2.5bn 5yr FXD at T+155bp, US$1.25bn 5yr FRN at 3mL+150bp.

PRICED: US$3.75bn 2-part total.

- US$2.5bn 2.65% cpn 5yr (1/05/22) FXD. At 99.906, yld 2.67%. T+155bp.

- US$1.25bn 5yr (1/05/22) FRN. At 100, floats at 3mL+150bp.

BOOK: Undisclosed

NIC (NasdaqGS: EGOV - news) : 6bp (vs. 2.95% '21s at G+145bp, add 4bp for maturity extension, FV=G+149bp)

COMPS:

2.950% May 25, 2021 at G+145bp

ENTERGY LOUISIANA

Entergy Louisiana LLC (ETR), A2/A, announced a US$400m (no grow) SEC registered 10-year (10/01/2026) collateral trust mortgage bonds deal. The active bookrunners are BNP Paribas (LSE: 0HB5.L - news) , Goldman Sachs (NYSE: GS-PB - news) , Keybank, SMBC and US Bank. UOP: Repayment of US$57.5m Waterford 3 Secured Lease Obligation Bonds bearing 8.09% interest per year, maturing Jan. 2, 2017, and GCP. Settlement: 10/04/2016 (T+4).

IPT: T+110bp area

PRICE GUIDANCE: T+95bp area (+/- 5bp)

LAUNCH: US$400m at T+90bp

PRICED: US$400m 2.40% cpn 10yr (10/01/2026). At 99.577, yld 2.448%. T+90bp. Benchmark spot: 99-18/1.548%.

BOOK: US$1.1bn

NIC: 1bp (vs. 3.25% '28s at G+93bp, subtract 4bp for maturity differential, FV=G+89bp)

COMPS:

3.250% April 1, 2028 at G+93bp

AMERICAN TOWER

American Tower Corporation (Frankfurt: A1JRLA - news) (AMT), Baa3/BBB-/BBB, announced a US$ benchmark SEC registered 2-part senior unsecured notes offering that includes a long 5-year (1/15/2022) and a long 10-year (1/15/2027). The active bookrunners are Bank of America (Swiss: BAC-USD.SW - news) , Citigroup (NYSE: C - news) , Credit Agricole (Swiss: ACA.SW - news) , JP Morgan and Morgan Stanley (Xetra: 885836 - news) . The notes contain a CoC, a MWC and a 3mo par call on the 10yr. UOP: To repay existing indebtedness, including term loan, 2013 credit facility and/or the 2014 credit facility, and GCP. Settle: 9/30/2020.

IPTs: 5yr T+130-135bp, 10yr T+175-180bp

PRICE GUIDANCE: 5yr T+120bp area, 10yr T+160bp area. Area is +/- 3bp.

LAUNCH: US$1bn 2part. US$600m 5yr at T+117bp, US$400m 10yr at T+157bp

PRICED: US$1bn 2part.

- US$600m. Cpn 2.250%. Due 1/15/2022. Ip US$99.858. Yld 2.279%. T+117bp. MWC T+20bp.

- US$400m. Cpn 3.125%. Due 1/15/2027. Ip US$99.933. Yld 3.133%. T+157bp. MWC T+25bp.

BOOK: US$2.6bn total; 5-year US$1.4bn, 10-year US$1.2bn

NIC: 5-year: Flat (vs. 3.3% '21s at G+115bp, add 2bp for maturity extension, FV=G+117bp)

10-year: Flat (vs. 4.4% '26s at G+156bp, add 1bp for maturity extension, FV=G+157bp)

COMPS:

AMT 3.300% February 15, 2021 at G+115bp

AMT 4.400% February 15, 2026 at G+156bp

CCI (Baa3/BBB-) 2.250% September 1, 2021 at G+116bp

CCI (Baa3/BBB-) 4.450% February 15, 2026 at G+159bp

CK HUTCHISON

CK Hutchison International Limited (HUWHY), A3/A-/A-, announced a US$ benchmark 144A/Reg S 2-part senior unsecured notes offering that includes a 5-year and 10-year. Bank of America Merrill Lynch, Citigroup, Goldman Sachs, HSBC (B&D) and Morgan Stanley are the joint bookrunners. CK Hutchison Holdings Limited is the guarantor. UOP: To refinance certain indebtedness and for general corporate purposes.

IPTs: 5-year T+115bp area, 10-year T+145bp area.

PRICE GUIDANCE: 5-year T+95bp area, 10-year T+135bp area. Area is +/- 5bp.

LAUNCH: US$1.25bn 2-part. US$750m 5yr at T+90bp, US$500m 10yr at T+130bp.

PRICED: US$1.25bn 2-part total.

- US$750m 1.875% cpn 5yr (10/03/2021). At 99.342, yld 2.014%. T+90bp. Benchmark spot: 1.114%.

- US$500m 2.75% cpn 10yr (10/03/2026). At 99.092, yld 2.855%. T+130bp. Benchmark spot: 1.555%.

BOOK: US$3.5bn total; 5-year US$1.9bn, 10-year US$1.6bn

NIC: Dollar debut offering

USD HIGH-GRADE PIPELINE

UPL Corporation Limited, Baa3/BBB-/BBB-, has mandated Citigroup and JP Morgan as joint global coordinators and ANZ, Citigroup, Credit Suisse (LSE: 0QP5.L - news) , Deutsche Bank (LSE: 0H7D.L - news) and JP Morgan as joint bookrunners to arrange a series of fixed income investor meetings in Asia, Europe and the US commencing Sept 29. A proposed benchmark offering under Rule 144A / Regulation S of USD-denominated senior unsecured notes may follow, subject to market conditions.

Viacom Inc, Baa3/BBB, asked Bank of America/Merrill Lynch, Citigroup and Morgan Stanley to arrange fixed income investor calls on Sept 27 and 28 in preparation for a dollar-denominated benchmark new issue with an intermediate tenor.

Nacional Financiera SNC, A3/BBB+, mandated Bank of America/Merrill Lynch and HSBC as joint leads to arrange fixed income meetings on Sept 27 and 28 in London, New York, Boston and Los Angeles in preparation for a possible dollar-denominated new issue.

Fortis Inc, S&P rating A-, asked Goldman Sachs, MUFG, Scotiabank and Wells Fargo (Hanover: NWT.HA - news) to arrange fixed income investor calls on Sept 28 from 8:00am thru 4:30pm ET. Goldman will coordinate.

Sumitomo Mitsui Trust Bank, exp rating A1/A, has mandated Goldman Sachs, JP Morgan, Citigroup and Daiwa to arrange investor calls that took place on September 26, ahead of a possible offering of US dollar 3-year fixed and/or floating senior unsecured notes. The issue will be under 144A/Reg S and is expected to price in the near future, subject to market conditions.

El Puerto de Liverpool SAB de CV, BBB+/BBB+, operator of Mexico's largest department store chain, mandated Citigroup, Credit Suisse and JP Morgan as joint leads to arrange fixed income investor meetings in the US and Europe that took place on Sept 26 in preparation for a dollar-denominated 144A/Reg S senior unsecured notes new issue. Meetings kicked off in London and continued on Sept 27 in New York and Boston before concluding in New York on Sept 28.

The Export-Import Bank of Korea (KEXIM) has mandated ANZ, Bank of America Merrill Lynch, Credit Agricole, Mizuho, Morgan Stanley, Societe Generale (Swiss: 519928.SW - news) and UBS (LSE: 0QNR.L - news) for a US dollar bond. The SEC-registered offering is expected sometime in the month of October.

HollyFrontier Crop, Baa3/BBB-, named Bank of America/Merrill Lynch, Citigroup, MUFG and Toronto Dominion to arrange fixed income investor calls that took place on Sept 15 and 16. Citigroup is coordinating.

KEB Hana Bank, A1/A, has mandated Citigroup, Credit Agricole CIB, JP Morgan, Standard Chartered Bank, UBS and KEB Hana Global Finance to arrange investor meetings in Asia, Europe, the Middle East and the US that took place on Sept 26. A USD denominated 144A/Reg S transaction may follow.

Banco Inbursa, BBB+/BBB+, mandated Bank of America/Merrill Lynch, Citigroup and Credit Suisse as joint book runners to arrange fixed income investor meetings in the US, Mexico and Europe that took place from Sept 7 to 12.

MTN Group, multinational mobile operator headquartered in Johannesburg, rated Baa3 (neg) by Moody's and BBB- (neg) by S&P, has mandated BAML, Barclays (LSE: BARC.L - news) , Citi and Standard Bank to arrange investor meetings in the US and UK that took place on Sept 9 in connection with an offering of intermediate tenor USD-denominated benchmark 144A/Reg S senior unsecured fixed rate notes.

Korea National Oil Corp, Aa2/AA-, will meet investors this month for an offering of US dollar 144A/Reg S bonds. The roadshow took place in Hong Kong on Sept 5. The company had planned to meet investors in Singapore, Frankfurt, London, New (KOSDAQ: 160550.KQ - news) York, Philadelphia, Boston and Los Angeles. Proceeds will refinance debt maturing this year.

Industrial Bank (Shanghai: 601166.SS - news) of Korea, Aa2/AA-, hired HSBC and Nomura to arrange fixed income investor meetings that took place in Hong Kong and Singapore on August 22 in preparation for a 144A/Reg S dollar-denominated offering.

(Reporting by Michael Gambale; Editing by Shankar Ramakrishnan)