US IG CLOSE-Five issuers raise US$19.475bn in primary market

* BAT brings second-largest bond of year

* VEREIT (Frankfurt: 50A.F - news) upsized to US$600m

* Noble, Oklahoma bond pricing little changed vs guidance

* Most actively traded: TEVA 3.15% 2026s

* Weekly issuance: US$33.925bn

* Monthly issuance: US$53bn

* Hearing Amazon may be prepping a possible US$ deal

By Mike Gambale

NEW YORK, Aug 8 (IFR) - Below is a recap of issuance activity in the US high-grade primary market on Tuesday.

Number of deals priced: 5

Total (LSE: 524773.L - news) issuance: US$19.475bn

Average new issue concession: 5.95bp

Total book to cover: 2.01

BAT CAPITAL

BAT Capital Corp (BATSLN), Baa2/BBB+, announced a US$ benchmark 144A/RegS 8-part senior unsecured note offering. Active bookrunners are BAML, BARC, Citi, DB and HSBC. Passive: MIZUHO, NWM, SANT, NIKKO, SG. Co-Managers: BANK OF CHINA (HKSE: 3988-OL.HK - news) , BBVA (LSE: 931474.L - news) , COMMERZ, ING, LLOYDS, SCOTIA, STANDARD CHARTERED (BSE: 580001.BO - news) , UNICREDIT (EUREX: DE000A163206.EX - news) . Guarantor: BAT International Finance, BAT Netherlands Finance, British American Tobacco Holdings (The Netherlands), Reynolds American Inc. The notes contain a MWC, a 1mo par (5yr), 2mo par call (7yr), 3mo par call (10yr), 6mo par call (20yr, 30yr). UoP: To repay acquisition facility and GCP, which may include the repayment of certain outstanding debt. Settle: T+5 (8/15/17).

IPTs: 3yr FXD T+90-95, 3yr FRN L equiv, 5yr FXD T+105-110, 5yr FRN L equiv, 7yr T+125-130, 10yr T+140-145, 20yr T+165-170, 30yr T+180-185bp

PRICE GUIDANCE: 3yr FXD T+85bp area, 3yr FRN L equiv, 5yr FXD T+100bp area, 5yr FRN L equiv, 7yr T+120bp area, 10yr T+135bp area, 20yr T+160bp area, 30yr T+175bp area. Area is +/- 5bp

LAUNCH: US$17.25bn 8-part. US$2.25bn 3yr FXD at T+80bp, US$1bn 3yr FRN at 3mL+59bp, US$2.25bn 5yr FXD at T+95bp, US$750m 5yr FRN at 3mL+88bp, US$2.5bn 7yr at T+115bp, US$3.5bn 10yr at T+130bp, US$2.5bn 20yr at T+155bp, US$2.5bn 30yr at T+170bp

PRICED: US$17.25bn 8-part.

- US$2.25bn. Cpn 2.297%. Due 8/14/20. Ip par. Yld 2.297%. T+80bp.

- US$1bn. Cpn 3mL+59bp. Due 8/14/20. Ip par. Yld 3mL+59bp.

- US$2.25bn. Cpn 2.764%. Due 8/15/22. Ip par. Yld 2.764%. T+95bp.

- US$750m. Cpn 3mL+88bp Due 8/15/22. Ip par. Yld 3mL+88bp.

- US$2.5bn. Cpn 3.222%. Due 8/15/24. Ip par. Yld 3.222%. T+115bp.

- US$3.5bn. Cpn 3.557%. Due 8/15/27. Ip par. Yld 3.557%. T+130bp.

- US$2.5bn. Cpn 4.390%. Due 8/15/37. Ip par. Yld 4.390%. T+155bp.

- US$2.5bn. Cpn 4.540%. Due 8/15/47. Ip par. Yld 4.540%. T+170bp.

BOOK: Total US$34.1bn; 3-year FRN US$1.7bn, 3-year FXD US$3.7bn, 5-year FRN US$1.5bn, 5-year FXD US$4.5bn, 7-year US$4.8bn, 10-year US$7bn, 20-year US$5.3bn, 30-year US$5.6bn

NIC (NasdaqGS: EGOV - news) : 3-year FXD: 4.5bp (3/5s curve worth 12.5bp, FV=G+75.5bp)

5-year FXD: 7bp (5/10s curve worth 35bp, FV=G+88)

7-year: 8bp (7/10s curve worth 16bp, FV=G+107bp)

10-year: 7bp (vs. 3.95% '25s at G+113bp, add 10bp for maturity extension, FV=G+123bp)

20-year: 6bp (20/30s curve worth 15bp, FV=T+149bp)

30-year: 6bp (10/30s curve worth 41bp, FV=T+164bp)

COMPS:

BATSLN 3.950% June 15, 2025 at G+113bp

CONNECTICUT LIGHT

Connecticut Light & Power Co (ES), A2/A+/A+, announced a US$225m (no grow) SEC (Shanghai: 603988.SS - news) registered tap of 4.30% 4/15/44 1st mortgage bond. The active bookrunners are MIZ and WFS. The notes contain a MWC at T+12.5bp until 10/15/43. UOP: To refinance short-term debt and fund cap ex. Settle: 8/17/17.

IPT: T+100-105bp

PRICE GUIDANCE: T+85bp (#)

LAUNCH: US$225m at T+85bp

PRICED: US$225m tap of 4.30% 4/15/44. At 109.749, yld 3.714%. T+85bp.

BOOK: US$700m

NIC: 4bp (vs. 4.3% '44s at T+82bp, subtract 1bp for high dollar price, FV=T+81bp)

COMPS:

ES 4.300% April 15, 2044 at T+82bp (US$110)

NOBLE ENERGY (Frankfurt: 860720 - news)

Noble Energy Inc (NBL), Baa3/BBB/BBB-, announced a US$ benchmark SEC registered 2-part senior unsecured note offering that includes a long 10-year (1/15/28) and a 30-year (8/15/47). Bookrunner active: CITI, JPM, and MUFG; Passive: BofAML, DNBK, MIZUHO. The notes contain a MWC, and a 3mo par call (10yr) and 6mo par call (30yr). UoP: To purchase or redeem US$1bn of 2019 notes pursuant to tender offer or redemption, including fees and expenses related to the tender offer or redemption. Settlement: T+5 (Aug 15, 2017).

IPTs: 10yr T+170bp area, 30yr T+220bp area

PRICE GUIDANCE: 10yr T+160bp area, 30yr T+210bp area. Area is +/- 2bp

LAUNCH: US$1.1bn 2-part. US$600m 10yr at T+160bp, US$500m 30yr at T+210bp

PRICED: US$1.1bn 2-part.

- US$600m 3.85% cpn 10yr (1/15/28). At 99.688, yld 3.887%. T+160bp

- US$500m 4.95% cpn 30yr (8/15/47). At 99.643, yld 4.973%. T+210bp

BOOK: Total US$2.1bn; 10-year US$1.2bn, 30-year US$900m

NIC: 10-year: 10bp (vs. 3.9% '24s at G+140bp, add 10bp for 7/10s curve, FV=G+150bp)

30-year: 4bp (vs. 5.05% '44s at T+206bp)

COMPS:

NBL 3.900% November 15, 2024 at G+140bp

NBL 5.050% November 15, 2044 at T+206bp

OKLAHOMA GAS

Oklahoma Gas & Electric Co (OGE), A1/A-/A, announced a US$300m (no grow) SEC registered 30-year (8/15/47) senior unsecured notes. The active bookrunners are JPM, MUFG and USB. The notes include a MWC and a 6mo par call. UOP: GCP, including to repay short-term debt and to fund ongoing cap ex program. Settle: 8/11/17.

IPT: T+110-115bp

PRICE GUIDANCE: T+100bp area (+/- 5bp)

LAUNCH: US$300m at T+100bp

PRICED: US$300m 3.85% cpn 30yr (8/15/47). At 99.682, yld 3.868%. T+100bp. Benchmark spot: 102-19+ (2.868%). MWC+15bp.

BOOK: US$575m

NIC: 4bp (vs. 4.15% '47s at T+96bp)

COMPS:

OGE 4.150% April 1, 2047 at T+96bp

VEREIT OPERATING

VEREIT Operating Partnership LP, Baa3/BBB-/BBB-, announced a US$500m SEC registered 10-year (8/15/27) senior unsecured notes. The active bookrunners are BAML, JPM, WFS. Guarantor: VEREIT Inc. The notes contain a MWC and a 3mo par call. UOP: to repay borrowings under the US$500m term loan. Settle: T+3 (8/11/17).

IPTs: T+200bp area

LAUNCH: US$600m (upsized from US$500m) at T+175bp

PRICED: US$600m 3.95% cpn 10yr (8/15/27). At 99.330, yld 4.032%. T+175bp. Benchmark spot: 100-26 (2.282%). MWC+30bp.

BOOK: US$1.6bn

NIC: 5bp (vs. 4.875% '26s at G+168bp, add 2bp for maturity extension, FV=G+170bp)

COMPS:

4.875% June 1, 2026 at G+168bp

HIGH-GRADE PIPELINE

Peruvian hydroelectric power plant Cerro Del Aguila has set IPTs of low 200bp over US Treasuries on a US$650m 10-year bond ahead of pricing on Wednesday. Proceeds are going to refinance outstanding project finance debt, shareholder loans and payment of IRS unwind. Ratings are Baa3/BBB- on the senior unsecured bond. Joint bookrunners are Credit Suisse (IOB: 0QP5.IL - news) , Credicorp, JP Morgan and Scotiabank. MWC & Par call 3 months prior to maturity. (Reporting by Mike Gambale; Editing by Shankar Ramakrishnan)