US IG CLOSE-Nine high-grade issuers raise US$10.525bn

By Mike Gambale

NEW YORK, June 1 (IFR) - Below is a recap of primary issuance activity in the US high-grade market on Monday:

Number of deals priced: 9

Total issuance volume: US$10.525bn

Average new issue concession: 11.54bp

Average book to cover: 2.4

PETROBRAS GLOBAL FINANCE

Petrobras Global Finance B.V. (PGF), Ba2/BBB-/BBB-, announced a US$ benchmark SEC (Shanghai: 603988.SS - news) registered 100-year senior unsecured note. The active bookrunners include Deutsche Bank (Xetra: 514000 - news) and JP Morgan. UOP: GCP.

IPT: 8.85% area

PRICE GUIDANCE: 8.55% area (+/- 10bp)

LAUNCH: US$2.5bn at 8.45%

PRICED: US$2.5bn 100-year: 81.070; 6.85%C; 8.45%Y; T+549.3bp

BOOK: Over US$13bn

PRECISION CASTPARTS CORP (NYSE: PCP - news)

Precision Castparts Corp (PCP), A2/A-, announced a US$ benchmark SEC registered 4-part senior unsecured note offering that includes a 5-year (6/15/2020), 10-year (6/15/2025), 20-year (6/15/2035), and 30-year (6/15/2045). The active bookrunners include Bank of America, Citigroup (NYSE: C - news) and Mizuho, with Mitsubishi, US Bank and Wells Fargo as the passive bookrunners.

The notes contain a CoC, a MWC, 1mo par call on the 5yr tranche, a 3mo par call on the 10yr tranche, and a 6mo par call on the 20yr & 30yr tranches. UOP: To pay down its commercial paper, to pay, when due, the $500mm of 0.70% Senior Notes due December 2015, and for general corporate purposes. Settle: 6/10/2015.

IPTs: 5yr T+75bp area, 10yr T+110bp area, 20yr T+125bp area, 30yr T+145bp area

PRICE GUIDANCE: 5yr T+70bp area, 10yr T+110bp area, 20yr T+130bp area, 30yr T+145bp area. Area is +/- 5bp.

LAUNCH: US$2bn 4-part. US$550m 5yr at T+70bp, US$850m 10yr at T+110bp, US$275m 20yr at T+130bp, US$325m 30yr at T+145bp.

PRICED: US$2bn 4-part total.

- US$550m 2.25% cpn 5yr (06/15/2020) at T+70bp; $99.990; 2.252% yld; MWC: T+15bp

- US$850m 3.25% cpn 10yr (06/15/2025) at T+110bp; $99.796; 3.274% yld; MWC: T+20bp

- US$275m 4.20% cpn 20yr (06/15/2035) at T+130bp; $99.397; 4.245% yld; MWC: T+20bp

- US$325m 4.275% cpn 30yr (06/15/2045) at T+145bp; $99.668; 4.395% yld; MWC: T+25bp

BOOK: Total US$2.94bn

5-year: US$640m

10-year: US$1.2bn

20-year: US$500m

30-year: US$600m

NIC (NasdaqGS: EGOV - news) : 5-year: 15bp (5/10s curve worth 40bp, FV=G+55bp)

10-year: 15bp (vs. 2.500% '23s at G+88bp, add 7bp for maturity extension, FV=G+95bp)

20-year: 20bp (20/30s curve worth 15bp, FV=T+110bp)

30-year: 20bp (vs. 3.900% '43s, add 5bp for maturity extension, FV=T+125bp)

COMPS:

2.500% January 15, 2023 at G+88bp

3.900% January 15, 2043 at T+120bp

MARATHON OIL

Marathon Oil Corp (MRO), Baa1/BBB/BBB+, announced a US$ benchmark SEC registered 3-part senior unsecured note offering that includes a 5-year (6/01/2020), 10-year (6/01/2025), and 30-year (6/01/2045). The bookrunners include JP Morgan and Morgan Stanley (Xetra: 885836 - news) .

The notes contain a MWC and a 1mo par call on the 5yr tranche, a 3mo par call on the 10yr & 30yr tranches. UOP: General corporate purposes, including repayment or refinancing of debt and funding for acquisitions, working capital requirements, capital expenditures and repurchases and redemptions of securities. Settle: 6/10/2015.

IPTs: 5yr T+127bp area, 10yr T+175-187bp, 30yr T+237.5bp area

PRICE GUIDANCE: 5yr T+120-125bp, 10yr T+170-175bp, 30yr T+225-230bp

LAUNCH: US$2bn 3-part. US$600m at T+120bp, US$900m at T+170bp, US$500m at T+225bp.

PRICED: US$2bn 3-part total.

- US$600m 2.70% cpn 5yr (6/01/2020). At 99.783, yld 2.747%. T+120bp. MWC+20bp.

- US$900m 3.85% cpn 10yr (6/01/2025). At 99.771, yld 3.878%. T+170bp. MWC+30bp.

- US$500m 5.20% cpn 30yr (6/01/2045). At 99.941, yld 5.204%. T+225bp. MWC+35bp.

BOOK: Total book US$4.35bn

5-year: US$1.6bn, 10-year: US$1.8bn, 30-year: US$950m

NIC: 5-year: 10bp (5/10s curve worth 55bp, FV=G+110bp)

10-year: 5bp (vs. 2.80% '22s at G+158bp, add to 7bp for maturity extension, FV=G+165bp)

30-year: 10bp (10/30s curve worth 50bp, FV=T+215bp)

COMPS:

2.800% November 1, 2022 at G+158bp

BARCLAYS PLC (LSE: BARC.L - news)

Barclays PLC, Baa3/BBB/A (s/s/s), announced a US$ benchmark SEC-Reg (Madrid: SL001.MC - news) 5-year (6/8/2020) fixed and/or floating senior unsecured self-led notes. UOP: GCP. Settlement date 6/8/2015.

IPT: T+low-mid 140s

PRICE GUIDANCE: T+145bp area (+/- 3bp). (5yr FRN dropped)

LAUNCH: US$1bn at T+142bp

PRICED: US$1bn 2.875% cpn 5yr (6/8/2020). At 99.575, yld 2.967%. T+142bp. 1st pay: 12/8/2015.

BOOK: Undisclosed

NIC: 15bp (vs. 2.75% '19s at G+117bp, add 10bp for maturity extension, FV=G+127bp)

COMPS:

2.500% (A2/A/A) February 20, 2019 at G+88bp (OC)

2.750% (Baa3/BBB/A) November 8, 2019 at G+117bp (HC)

3.650% (Baa3/BBB/A) March 16, 2020 at G+182bp (HC)

STARBUCKS CORP

Starbucks Corp (SBUX), A3/A-/A-, announced a US$ benchmark SEC registered 2-part senior unsecured offering that includes a 7-year (6/15/2022) and a 30-year (6/15/2045). The active bookrunners include Bank of America, Citigroup and Morgan Stanley (Shenzhen: 002588.SZ - news) . The notes contain a MWC, a 2mo par call on the 7yr tranche, a 6mo par call on the 30yr tranche. UOP: General Corporate Purpose, Repay/Refinance Debt, Share Buyback, Dividend Payment - Shareholders, Capital Expenditures. Settle: 6/10/2015.

IPTs: 7yr T+95bp area, 30yr T+150bp area

PRICE GUIDANCE: 7yr T+80bp area, 30yr T+140bp area. Area is +/- 2bp.

LAUNCH: US$850m 2-part. US$500m 7yr at T+78bp, US$350m 30yr at T+138bp

PRICED: US$850m 2-part total. 1st pay: 12/10/2015.

- US$500m 2.70% cpn 7yr (6/15/2022). At 99.981, yld 2.703%. T+78bp. MWC+12bp.

- US$350m 4.30% cpn 30yr (6/15/2045). At 99.598, yld 4.324%. T+138bp. MWC+20bp.

BOOK: Total US$2.8bn; 7-year: US$1.7bn, 30-year: US$1.1bn

NIC: 7-year: 6bp (Subtract 8bp for maturity differential, FV=G+72bp)

30-year: 8-13bp (vs. 3.85% '23s at G+70bp, add 55-60bp for 7/30s curve, FV=T+125-130bp)

COMPS:

3.850% October 1, 2023 at G+80bp

THE ESTEE LAUDER COS INC

The Estee Lauder Cos Inc (EL), A2/A+, announced a US$300m (no grow) SEC registered 30-year (6/15/2045) senior unsecured notes. The active bookrunners include Citigroup and Goldman Sachs, with Bank of America and JP Morgan as the passive bookrunners.

The notes contain a MWC and 6mo par call. UOP: general corporate purposes, which may include repayment of our outstanding commercial paper as it matures and other indebtedness, acquisitions, working capital, capital expenditures and repurchases of our Class A Common Stock. Pending any specific application, we may initially invest funds in short-term marketable securities. Settle: 6/04/2015.

IPT: T+145bp area

PRICE GUIDANCE: T+155bp area

LAUNCH: US$300m at T+155bp

PRICED: US$300m 4.375% cpn 30-yr (6/15/2045). At 97.999, yld 4.497%. T+155bp.

BOOK: US$450m

NIC: 20bp (vs. 3.70% '42s at T+128bp, add 7bp for low dollar priced, FV=T+135bp)

COMPS:

3.700% August 15, 2042 at T+128bp (US$93)

KMB (A2/A) 3.700% June 1, 2043 at T+115bp (US$93.25)

NKE (A1/AA-) 3.625% May 1, 2043 at T+108bp (US$94)

SCJOHN (NR/A-/A-) 4.350% September 30, 2044 at T+137bp

DISCOVER BANK

Discover Bank (DFS), Baa3/BBB/BBB+, announced a US$ benchmark 3(a)2 exempt for registration 5-year senior bank notes. The active bookrunners inlclude Bank of America, Citigroup and JP Morgan. The notes includes a MWC and a 1mo par call. UOP: GCP.

IPT: T+165bp area

LAUNCH: US$1.25bn at T+155bp

PRICED: US$1.25bn 3.10% cpn 5yr (6/4/2020). At 99.977, yld 3.105%. T+155bp. 1st pay: 12/04/2015.

BOOK: US$2.7bn

NIC: 5bp (Subtract 7bp for maturity differential; FV=G+150bp)

COMPS:

3.200% August 9, 2021 at G+157bp

TTX CO

TTX Co (TTXCO), Baa1/A+/A-, announced a US$300m 144a/RegS (no reg rights) 5-year (6/15/2020) senior unsecured notes. The active bookrunners include Citigroup, JP Morgan and Wells Fargo. Co-mgrs: Bank of America. The notes contain a MWC and 1 mo par call. UOP: working capital and other general corporate purposes. Settlement: T+5 (Jun 08, 2015).

IPT: T+115bp area

PRICE GUIDANCE: T+105bp area (+/- 5bp)

LAUNCH: US$300m at T+105bp

PRICED: US$300m 2.60% cpn 5yr (6/15/2020). At 99.995, yld 2.601%. T+105bp. MWC+20bp.

BOOK: US$700m

NIC: 10bp (5/10s curve worth 30bp, FV=G+95bp)

COMPS:

3.600% January 15, 2025 at G+125bp

PONTIS III (GLOBO (LSE: GBO.L - news) )

Pontis III ltd (Pontis), exp rating BBB+, announced a US$325m (no grow) 144a/RegS 10-year secured exchange notes for Globo Comunicação e Participações S.A. (Globo) Notes due 2025, Globo exp rating Baa1/BBB+/BBB+. The active bookrunners include Bank of America, Itau and Santander. Redemption: Par call 90 day prior to the final maturity. Use of Proceeds: Redeem Globo's US$ 325mn 6.250% / 9.375% Step (Shenzhen: 002527.SZ - news) -up Perpetual Notes, which are callable on July 20, 2015.

IPT: hi 200s

PRICE GUIDANCE: T+ 270bp area (+/- 5bp)

LAUNCH: US$325m at T+265bp

PRICED: US$325m 10yr (6/08/2025) SENs: 100; 4.843%; T+265bp

BOOK: US$975m

(Reporting by Michael Gambale; editing by Shankar Ramakrishnan)