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US IG CLOSE-AstraZeneca raises US$6bn with five-part deal
By Mike Gambale
NEW YORK, Nov 10 (IFR) - Below is a recap of primary issuance activity in the US high-grade market on Tuesday:
Number of deals: 1
Total (Swiss: FP.SW - news) issuance volume: US$6bn
Total book to cover: 2.26
Average NIC: 6.50
ASTRAZENECA PLC (NYSE: AZN - news)
AstraZeneca PLC (AZN), A2/A, announced a US$ benchmark SEC registered 5-part senior unsecured notes offering that includes a 3-year FXD and/or FRN (11/16/2018), 5yr FXD (11/16/2020), 10yr FXD (11/16/2025), and 30yr (11/16/2045).
The active bookrunners are Bank of America (Swiss: BAC.SW - news) , Barclays (LSE: BARC.L - news) , HSBC and Morgan Stanley (Xetra: 885836 - news) . The notes contain a MWC. UOP: To fund the acquisition of ZS Pharma (NasdaqGM: ZSPH - news) , to repay certain of outstanding commercial paper obligations and for general corporate purposes. Settlement T+3 (Nov 16, 2015).
IPTs: 3yr T+65bp area, 5yr T+85bp area, 10yr T+125bp area, 30yr T+150bp area
PRICE GUIDANCE: 3yr FXD T+60bp area, 3yr FRN Libor equiv, 5yr T+80bp area, 10yr T+120bp area, 30yr T+140bp area. Area is +/- 5bp.
LAUNCH: US$6bn 5-part. US$1bn 3yr FXD at T+55bp, US$400m 3yr FRN at 3mL+53bp, US$1.6bn 5yr at T+75bp, US$2bn 10yr at T+115bp, US$1bn 30yr at T+135bp
PRICED: US$6bn 5-part total.
- US$1bn 1.75% cpn 3yr FXD (11/16/2018). At 100, yld 1.75%. T+55bp. MWC+10bp. 1st pay: 5/16/2016.
- US$400m 3yr FRN (11/16/2018). At 100, floats at 3mL+53bp. 1st pay: 2/16/2016.
- US$1.6bn 2.375% cpn 5yr (11/16/2020). At 99.584, yld 2.464%. T+75bp. MWC+15bp. 1st pay: 5/16/2016.
- US$2bn 3.375% cpn 10yr (11/16/2025). At 99.070, yld 3.486%. T+115bp. MWC+20bp. 1st pay: 5/16/2016.
- US$1bn 4.375% cpn 30yr (11/16/2045). At 98.602, YLD 4.460%. T+135bp. MWC+25bp. 1st pay: 5/16/2016.
BOOK: US$13.55bn total; 3-year FRN US$500m, 3-year FXD US$1.65bn, 5-year US$3bn, 10-year US$4.7bn, 30-year US$3.7bn
NIC (NasdaqGS: EGOV - news) : 3-year: 6bp (3/5s curve worth 20bp, FV=G+49bp)
5-year: 6bp (vs. AZN 1.95% '19s at G+59bp, add 10bp for maturity extension, FV=G+69bp)
10-year: 7bp (10/30s curve worth 20bp, FV=G+108bp)
30-year: 7bp (vs. AZN 4.00% '42s at T+128bp)
COMPS:
AZN 1.950% September 18, 2019 at G+59bp
AZN 4.000% September 18, 2042 at T+128bp
ROSW (A1/AA) 2.250% September 30, 2019 at G+61bp
ROSW (A1/AA) 3.000% November 10, 2025 at G+82bp
ROSW (A1/AA) 4.000% November 28, 2044 at T+100bp
GSK (A2/A+) 2.800% March 18, 2023 at G+89bp
GSK (A2/A+) 4.200% March 18, 2043 at T+119bp
MRK (A2/AA) 1.850% February 10, 2020 at G+45bp
MRK (A2/AA) 2.750% February 10, 2025 at G+89bp (Reporting by Michael Gambale; Editing by Varghese Joseph)
