US IG CLOSE-Eleven high-grade issuers raise US$12.175bn
By Mike Gambale
NEW YORK, May 11 (IFR) - Below is a recap of primary issuance activity in the US high-grade market on Monday:
Number of deals priced: 11
Total (Swiss: FP.SW - news) issuance volume: US$12.175bn
Average new issue concession: 6.29
Average book to cover: 2.71
LLOYDS BANK
Lloyds Bank plc (LLOYDS), A1/A/A (p/n/s), announced a US$ 3-year fixed and/or floater (5/14/2018) and a 10-year fixed (5/14/2025) SEC (Shanghai: 603988.SS - news) -Reg (Madrid: SL001.MC - news) notes. Three year bookrunners include Bank of America, Deutsche Bank (Xetra: 514000 - news) , JP Morgan, Lloyds and TD Securties. Ten-year bookrunners Bank of America, Deutsche Bank, JP Morgan, Llodys and Wells Fargo. UOP: GCP.
IPT: 3-year FXD at T+high 80s, 3-year FRN 3mL+equivalent, 10-year FXD High 130s.
PRICE GUIDANCE: 3yr FXD T+80bp (the #), 3yr FRN 3mL+55bp (the #), 10yr T+130bp area (+/- 3bp)
LAUNCH: US$2.9bn 3-part. US$1.25bn 3yr FXD at T+80bp, US$400m 3yr FRN at 3mL+55bp, US$1.25bn 10yr at T+127bp
PRICED: US$2.9bn 3-part total
- US$1.25bn 1.75% 3yr FXD (5/14/2018). At 99.904, 1.783%. T+80bp. 1st pay: 11/14/2015.
- US$400m 3yr FRN (5/14/2018). At 100, floats at 3mL+55bp. 1st pay: 8/14/2015.
- US$1.25bn 3.50% 10yr (5/14/2025). At 99.732, yld 3.532%. T+127bp. 1st pay: 11/14/2015.
BOOK: Just under US$7bn
NIC (NasdaqGS: EGOV - news) : 3-year: 6bp (vs. 1.75% '18s at G+74bp)
10-year: 4bp (vs. 4.50% '24s at G+113bp, add 10bp for maturity extension, FV=G+123bp)
COMPS:
1.750% March 16, 2018 at G+74bp
2.400% March 17, 2020 at G+84bp
4.500% May 24, 2024 at G+113bp
DAIMLER FINANCE NA
Daimler Finance North America LLC, A3/A-/A-, announced a US$ benchmark 144a/RegS (no reg rights) 4-part senior unsecured note offering that includes a 3-year FXD and FRN (5/18/2018), a 5-year FXD (5/18/2020), and a 10-year FXD (5/19/2025). The active bookrunners include a BNP Paribas (Xetra: 887771 - news) , Citigroup (NYSE: C - news) , HSBC, Lloyds and Mizuho. Optional redemption: Make whole Call on fixed tranches. Use of Proceeds: General corporate purposes. Settle: 5/18/2015.
IPTs: 3yr FXD T+mid70s, 5yr low-mid 90s, 10yr T+110bp area
PRICE GUIDANCE: 3yr FXD T+70bp (the #), 3yr FRN Libor equiv, 5yr T+90bp (the #), 10yr T+105bp (the #)
LAUNCH: US$3bn 4-part. US$800m 3yr FXD at T+70bp, US$250m 3yr FRN at 3mL+45bp, US$1.3bn 5yr at T+90bp, US$650m 10yr at T+105bp.
PRICED: US$ 4-part.
- US$800m 1.65% 3yr FXD (5/18/2018). At 99.872, yld 1.694%. T+70bp.
- US$250m 3yr FRN (5/18/2018). At 100, floats at 3mL+45bp.
- US$1.3bn 2.45% 5yr (5/18/2020). At 99.804, yld 2.492%. T+90bp.
- US$650m 3.30% 10yr (5/19/2025). At 99.797, yld 3.324%. T+105bp.
BOOK: US$4.3bn
NIC: 3-year: 14bp (vs. 1.65% '18s at G+56bp)
5-year: 12bp (vs. 2.25% '20s at G+78bp)
10-year: 10bp (vs. 3.25% '24s at G+89bp, add 6bp for maturity extension, FV=G+95bp)
COMPS:
1.650% March 2, 2018 at G+56bp
2.250% March 2, 2020 at G+78bp
3.250% August 1, 2024 at G+89bp
VW (A2/A-) 1.600% November 20, 2017 at G+53bp
VW (A2/A-) 2.450% November 14, 2017 at G+76bp
SEAGATE HDD CAYMAN
Seagate HDD Cayman, Baa3/BBB-/BBB-, announced a US$400m 144A/RegS (w/ reg rights) 12-year (6/01/2027) senior unsecured note offering. Active bookrunner include Morgan Stanley (Xetra: 885836 - news) , with Bank of America as a passive bookrunner. Co-Managers SCOTIA, BNPPAR. The notes contain a CoC at price at 101, a MWC, and a 3mo par call. UOP: general corporate purposes, which may include, replenishing cash associated with the redemption of the outstanding 6.875% Senior Notes due 2020, capital expenditures and other investments in the business.
IPT: T+287.5bp
PRICE GUIDANCE: T+270bp area (+/-5)
LAUNCH: US$700m (upsized from US$400m) at T+265bp
PRICED: US$700m 4.875% 12-yr (6/01/2027). At 99.718, yld 4.906%. T+265bp. MWC+40bp.
BOOK: US$1.75bn
NIC: 10bp (vs. 4.75% '25s at G+235bp, add 20bp for maturity extension, FV=G+255bp)
COMPS:
4.750% January 1, 2025 at G+235bp
5.750% December 1, 2034 at T+330bp
KOREA DEVELOPMENT BANK (KDB)
Korea Development Bank (KDB), Aa3/A+/AA-, announced a US$ benchmark SEC-registered 5-year senior unsecured bonds. The active bookrunners include Barclays (LSE: BARC.L - news) , Citigroup, Credit Suisse (NYSE: CS - news) , Goldman Sachs (NYSE: GS-PB - news) , HSBC, KDB Asia and Societe Generale (Paris: FR0000130809 - news) .
IPT: low 80s
FINAL GUIDANCE: T+75bp area (+/- 2.5bp)
LAUNCH: US$500m at T+72.5bp
PRICED: US$500m 2.25% cpn 5-yr (5/18/2020). At 99.836, yld 2.285%. T+72.5bp.
BOOK: US$1.35bn
NIC: Flat (vs. 2.50% '20s at G+72bp)
COMPS:
2.500% March 11, 2020 at G+72bp
3.750% January 22, 2024 at G+76bp
EIBKOR (Aa3/A+/AA-) 2.250% January 21, 2020 at G+73bp
EIBKOR (Aa3/A+/AA-) 2.875% January 21, 2025 at G+78bp
EQUITY RESIDENTIAL OPERATING
Equity Residential Operating LP (EQR) Baa1/A-/A-, announced a US$ benchmark SEC registered 2-part senior unsecured note offering that includes a 10-year (6/01/2025) and 30-year (6/01/2045). The active bookrunners include Citigroup, Morgan Stanley (Shenzhen: 002588.SZ - news) and Royal Bank of Canada (Other OTC: RBKDF - news) , with Barclays as a passive bookrunner. Optional Redemption: MWC 10-Year: 3-Month Par Call; 30-Year: 6-Month Par Call.
Use of Proceeds: For working capital and general company purposes, including repayment of all or a portion of the notes issued under our commercial paper program and all or a portion of the outstanding balance under our unsecured revolving credit facility. Settlement T+3 (May 14, 2015).
IPTs: 10yr T+130-135bp, 30yr T+160-165bp
PRICE GUIDANCE: 10yr T+120bp area (+/- 2bp), 30yr T+155bp area (+/- 5bp)
LAUNCH: US$750m 2-part. US$450m 10yr at T+118bp, US$300m 30yr at T+150bp.
PRICED: US$750m 2-part total.
- US$450m 3.375% 10yr (6/01/2025). At 99.45, yld 3.44%. T+118bp. MWC+20bp. 1st pay: 12/01/2015.
- US$300m 4.50% 30yr (6/01/2045). At 99.622, yld 4.523%. T+150bp. MWC+25bp. 1st pay: 12/01/2015.
BOOK: Total US$3.178bn; 10-year US$2.065bn, 30-year US$1.113bn
NIC: 10-year: 3bp (vs. 3% '23s at G+105bp, add 10bp for maturity extension, FV=G+115bp)
30-year: 2bp (vs. 4.5% '44s at T+148bp)
COMPS:
3.000% April 15, 2023 at G+105bp
4.500% July 1, 2044 at T+148bp
APPALACHIAN POWER
Appalachian Power Co (AEP), Baa1/BBB, announced a US$650m (no grow) SEC registered 2-part senior unsecured note offering that includes a 10-year (6/01/2025) and 30-year (6/01/2045). The active bookrunners include Goldman Sachs, US Bank and Wells Fargo. The notes contain a MWC, and a 3mo par call in the 10yr tranche and a 6mo par call on the 30yr tranche. UOP: Repay 3.40% notes due 2015 & 7.95% notes due 2020. Settle: 5/18/2015.
IPTs: 10yr T+125-130bp, 30yr T+155-160bp
PRICE GUIDANCE: 10yr T+125bp area, 30yr T+155bp area. Area is +/- 5bp.
LAUNCH: US$650m 2-part. US$300mm 10yr at T+120bp, US$350m 30yr at T+150bp.
PRICED: US$650m 2-part total.
- US$300m 3.40% 10-yr (6/01/2025). At 99.645, yld 3.442%. T+120bp.
- US$350m 4.45% 30yr (6/01/2045). At 99.277, yld 4.494%. T+150bp.
BOOK: US$1.6bn (evenly split)
NIC: 10-year: 5bp (vs. 4.6% '21s at G+80bp, add 35bp for maturity extension, FV=G+115bp)
30-year: 10bp (vs. 4.40% '44s at T+140bp)
COMPS:
4.600% March 30, 2021 at G+80bp
4.400% May 15, 2044 at T+140bp
VEPCO
Virginia Electric & Power Company (VEPCO), A2/A-/A (s/n/s), announced a US$700m (no grow) 2-part senior unsecured SEC-Reg note offering via BNP Paribas, JP Morgan and Mizuho. Structure will consist of a 10-year (5/15/2025) and a 30-year (5/15/2045). Par calls apply 3-months and 6-months, respectively. UOP: General corporate purposes and to repay short-term debt. Settlement date T+2.
IPTs: 10-year T+105bp, 30-year T+140bp
PRICE GUIDANCE: 10yr T+90bp area, 30yr T+125bp area. Area is +/- 5bp.
LAUNCH: US$700m 2-part. US$350m 10yr at T+85bp, US$350m 30yr at T+120bp.
PRICED: US$700m 2-part total.
- US$350m 3.10% 10yr (5/15/2025). At 99.838, yld 3.119%. T+85bp. MWC+15bp.
- US$350m 4.20% 30yr (5/15/2045). At 99.644, yld 4.221%. T+120bp. MWC+20bp.
BOOK: Just over US$2bn
NIC: 10-year: negative 5bp (vs. 3.45% '24s at G+90bp)
30-year: negative 5bp (vs. 4.45% '44s at T+125bp)
COMPS:
3.450% February 15, 2024 at G+90bp
SO (A1/A) 2.800% April 1, 2025 at G+82bp
PNW (A3/A-) 3.350% June 15, 2024 at G+94bp
PCG (A3/BBB) 3.400% August 15, 2024 at G+97bp
4.450% February 15, 2044 at T+125bp
SO (A1/A) 3.750% March 1, 2045 at T+113bp
PNW (A3/A-) 4.700% January 15, 2044 at T+126bp
PCG (A3/BBB) 4.300% March 15, 2045 at T+130bp
VERISK ANALYTICS (NasdaqGS: VRSK - news)
Verisk Analytics Inc (VRSK), Baa3/BBB-/BBB+, announced a US$ benchmark SEC registered 2-part senior note offering that includes a 10-year and 30-year. Active bookrunners include Bank of America, JP Morgan and Suntrust. Passive bookrunner is Wells Fargo. The notes contain a Make Whole Call; Par Call: 3 month(s) prior to maturity on the 10yr tranche.
Par Call: 6 month(s) prior to maturity on the 30yr tranche. Use of Proceeds: Together with the net proceeds of the Common Stock Offering, the borrowings under the company's revolving credit facility and cash on hand, to finance the approximately $2.8bn purchase price for the acquisition of Wood Mackenzie Limited. Settle: 5/14/2015.
IPTs: 10yr T+200bp area, 30yr T+250bp area
PRICE GUIDANCE: 10yr T+185bp area (+/- 5bp), 30yr T+250bp (the #)
LAUNCH: US$1.25bn 2-part. US$900m 10yr at T+180bp, US$350m 30yr at T+250bp
PRICED: US$1.25bn 2-part total. 1st pay: 12/15/2015.
- US$900m 4.0% 10yr (6/15/2025). At 99.463, yld 4.065%. T+180bp.
- US$350m 5.50% 30yr (6/15/2045). At 99.657, yld 5.523%. T+250bp.
BOOK: US$4.5bn total; 10-year US$3.25bn, 30-year US$1.25bn
NIC: 10-year: 7bp (vs. 4.125% '22s at G+173bp)
30-year: 17bp (10/30s curve worth 60bp, FV=T+233bp)
COMPS:
4.875% January 15, 2019 at G+153bp
5.800% May 1, 2021 at G+156bp
4.125% September 12, 2022 at G+173bp
EFX (Baa1/BBB+) 3.300% December 15, 2022 at G+129bp
MCO (NR/BBB+) 2.750% July 15, 2019 at G+105bp
MCO (NR/BBB+) 4.875% February 15, 2024 at G+157bp
MCO (NR/BBB+) 5.250% July 15, 2044 at T+190bp
TRICN (Baa2/BBB+) 3.850% Septemeber 29, 2024 at G+156bp
TRICN (Baa2/BBB+) 5.650% November 23, 2043 at T+194bp
FISV (Baa2/BBB) 3.500% October 1, 2022 at G+135bp
FIS (Baa3/BBB) 2.000% April 15, 2018 at G+94bp
FIS (Baa3/BBB) 3.875% June 5, 2024 at G+165bp
DNB (NR/BBB-) 4.375% December 1, 2022 at G+194bp
MSCI (Ba1/BB+) 5.250% November 15, 2024 at G+270bp
PUGET SOUND ENERGY
Puget Sound Energy Inc (PSD), A2/A-, announced a US$425m (no grow) SEC registered 30-year fallaway FMB notes. The active bookrunenrs include JP Morgan, Mitsubishi and Scotia. Senior Co-managers: Suntrust/USB/CIBC/TD. Co-managers: TD/RBC (Other OTC: RBCI - news) . The notes contain a 6mo par call. UOP: To redeem and to make any required make-whole payments in connection therewith, the following: $150 million principal amount of Senior Secured Notes due October 1, 2015 and $250 million principal amount of the Senior Secured Notes due January 15, 2016. Settle: T+10.
IPT: T+130-135bp
PRICE GUIDANCE: T+135bp area (+/- 5bp)
LAUNCH: US$425m at T+130bp.
PRICED: US$425m 4.30% 30yr (5/20/2045). At 99.55, yld 4.327%. T+130bp. MWC+20bp. 1st pay: 11/20/2015.
BOOK: US$600m
NIC: 12bp (vs. 4.434% '41s at T+118bp)
COMPS:
4.434% November 15, 2041 at T+118bp
CMS (HKSE: 0867-OL.HK - news) (A1/A/A-) 3.950% May 15, 2043 at T+110bp
IDA (A1/A-/A-) 3.650% March 1, 2045 at T+110bp
AEE (A2/A/A) 3.650% April 15, 2045 at T+110bp
POM (A2/A/A-) 4.150% March 15, 2043 at T+115bp
EXC (A2/A-/A-) 3.700% March 1, 2045 at T+111bp
PACCAR FINANCIAL
PACCAR Financial Corp (PCAR), A1/A+, announced a US$300m SEC registered 3-year (5/14/2018) senior unsecured note offering. The active bookrunners include Bank of America, Citigroup and Mitsubishi. UOP: GCP. Settle: 5/14/2015.
IPT: T+55bp area
PRICE GUIDANCE: T+50bp area (+/- 3bp)
LAUNCH: US$300m at T+47bp.
PRICED: US$300m 1.40% 3-yr 5/18/2018. At 99.868, yld 1.445%. T+47bp.
BOOK: US$507m
NIC: 5bp (vs. 1.45% '18s at G+42bp)
COMPS:
1.450% March 9, 2018 at G+42bp
2.200% September 15, 2019 at G+59bp
CAT (Taiwan OTC: 4990.TWO - news) (A2/A/A) 1.250% August 18, 2017 at G+33bp
CAT (A2/A/A) 1.300% March 1, 2018 at G+42bp
CAT (A2/A/A) 2.000% March 5, 2020 at G+55bp
DE (A2/A) 1.350% January 16, 2018 at G+36bp
DE (A2/A) 2.050% March 10, 2020 at G+53bp
HNDA (A1/A+) 1.500% March 13, 2018 at G+45bp
CAPITAL ONE FINANCIAL
Capital One Financial Corp, Ba1/BB/BB (-/s/s), announced a US$ benchmark fixed-to-floating rate non-cumulative preferred SEC-Reg via JP Morgan, Barclays, Credit Suisse, Morgan Stanley and Wells Fargo as active, with Cap One as passive. US$1,000 per share.
DIVIDENDS: When, as, and if declared, dividends will accrue and be payable semi-annually, in arrears, on June 1st and December 1st of each year, beginning on December 1st, 2015 and (ii) during the period from through the redemption date of the Preferred Stock, if any (the "Floating Rate Period"), quarterly, in arrears, on March. 1st, June 1st, September 1st and December 1st of each year, beginning on September 1st, 2020.
Optional redemption: Subject to regulatory approval, (1) in whole or in part, from time to time, on any dividend payment date on or after June 1st, 2020 at Par plus any declared and unpaid dividends, or (2) in whole but not in part, at any time within 90 days following a regulatory capital treatment event (see Prospectus), at par plus any declared and unpaid dividends. UOP: GCP.
IPT: 5.75% area
PRICE GUIDANCE: 5.60% area (+/- 5bp)
LAUNCH: US$1bn at 5.55%
PRICED: US$1bn 5.55% cpn perp NC5. At 100, back-end at 3mL+380bp. 1st cpn: 12/01/2015. Settle: 5/14/2015.
BOOK: US$2bn (Reporting By Michael Gambale; editing by Shankar Ramakrishnan)