US IG CLOSE-Seventeen high-grade issuers raise US$26.8bn

By Mike Gambale

NEW YORK, Sept 9 (IFR) - Below is a recap of primary issuance activity in the US high-grade market on Wednesday:

Number of deals priced: 17

Total (Swiss: FP.SW - news) issuance volume: US$26.8bn

Average new issue concession: 11.50

Average book to cover: 3.55

GILEAD SCIENCES INC (NasdaqGS: GILD - news)

Gilead Sciences Inc, A3/A-, announced a US$ benchmark SEC (Shanghai: 603988.SS - news) registered 6-part senior unsecured note offering that includes a 3-year (9/4/2018), 5-year (9/1/2020), 7-year (9/1/2022), 10-year(3/1/2026), 20-year (9/1/2035), 30-year (3/1/2046).

Active bookrunners include Bank of America (Swiss: BAC.SW - news) and JPMorgan (LSE: JPIU.L - news) . Passives bookrunners include 3yr-MS/Miz, 5yr-HSBC/WFS, 7yr-MS/MIZ, 10yr-Barc/GS, 20yr-HSBC/WFS, 30yr-Barc/GS. Co-Man (Swiss: MAN.SW - news) : 3yr-BARC, HSBC, GS, WFS, 5yr-BARC, GS, MIZ, MS, 7yr-BARC, HSBC, GS, WFS, 10yr-HSBC, WFS, MIZ, MS, 20yr-BARC, GS, MIZ, MS, 30yr-HSBC, WFS, MIZ, MS.

Optional Redemption: Make-whole (all tranches). Change of Control: 101%. Use of Proceeds: The net proceeds from this offering will be used for general corporate purposes, which may include the repayment of debt, working capital, payment of dividends and the repurchase of our outstanding common stock pursuant to our authorized share repurchase program.

IPTs: 3-year T+105bp area, 5-year T+125bp area, 7-year T+155bp area, 10-year T+170bp area, 20-year T+190bp area, 30-year T+205bp area

PRICE GUIDANCE: 3yr T+85bp area, 5yr T+110bp area, 7yr T+140bp area, 10yr T+155bp area, 20yr T+170bp area, 30yr T+185bp area. Area = +/- 5bp

LAUNCH: US$10bn 6-part total.

- 3-year US$1bn at T+80bp 9/4/2018

- 5-year US$2bn at T+105bp 9/1/2020

- 7-year US$1bn at T+135bp 9/1/2022

- 10-year US$2.75bn at T+150bp 3/1/2026

- 20-year US$1bn at T+165bp 9/1/2035

- 30-year US$2.25bn at T+180bp 3/1/2046.

PRICED: Details not available yet

BOOK: US$36bn

NIC (NasdaqGS: EGOV - news) : 3-year: 12bp (3/5s curve worth 25bp, FV=G+68bp

5-year: 12bp (vs. 2.35% '20s at G+93bp)

7-year: 22bp (7/10s curve worth 15bp, FV=G+113bp)

10-year: 22bp (vs. 3.5% '25s at G+128bp)

20-year: 25bp (20/30s curve worth 15bp, FV=T+140bp)

30-year: 25bp (vs. 4.5% '45s at T+155bp)

COMPS:

2.350% February 1, 2020 at G+93bp

3.500% Feburary 1, 2025 at G+128bp

4.500% February 1, 2045 at T+155bp

AMERICAN EXPRESS CREDIT CORP

American Express Credit Corporation, A2/A-/A+, announced a US$ benchmark SEC registered 2-part offering that includes a 5-year (9/14/2020) fixed and/or FRN. The active bookrunners include Barclays (LSE: BARC.L - news) , Citigroup (NYSE: C - news) , HSBC and Royal Bank of Canada (Other OTC: RBCDF - news) . The notes contain a 31 day par call. UOP: GCP. Settle: 9/14/2015.

IPTs: 5yr FXD T+125bp area, 5yr FRN Libor equiv

PRICE GUIDANCE: 5-year FXD T+112bp (+/-2bp), 5-year FRN 3mL+equivalent.

LAUNCH: US$2bn 2-part. US$1.5bn 5yr FXD at T+110bp, US$500m 5yr FRN at 3mL+105bp

PRICED: US$2bn 2-part total.

- US$1.5bn 2.60% cpn 5yr (9/14/2020) FXD. At 99.921, yld 2.617%. T+110bp. 1st pay: 3/14/2016.

- US$500m 5yr (9/14/2020) FRN. At 100, floats at 3mL+105bp. 1st pay: 12/14/2015.

BOOK: US$4bn total

NIC: 11bp (vs. 2.375% '20s at G+99bp)

COMPS:

1.800% July 31, 2018 at G+80bp

2.375% May 26, 2020 at G+99bp

LOWE'S COS INC

Lowe's Cos Inc (LOW), A3/A-, announced a US$ benchmark SEC registered 4-part senior unsecured note offering that includes a 3-year (9/14/2028) fixed/FRN, 10-year (9/15/2025) and 30-year (9/15/2045). The active bookrunners include Bank of America, JPMorgan and Suntrust. The notes contain a MWC and a 3mo par call on the 10yr tranche and 6mo par call on the 30yr tranche. Covenants: Change of Control.

Use of Proceeds: For the repayment of US$500m aggregate principal amount at maturity of the 5.000% notes due October 15, 2015, and for other general corporate purposes, which may include repurchases of shares of common stock, capital expenditures, financing of future acquisitions or strategic investments and working capital needs. Settlement T+5 (Sep (Shanghai: 600021.SS - news) 16, 2015).

IPTS: 3-year T+80bp area, 3-year 3mL+equivalent, 10-year T+140-145bp, 30-year T+175bp area

PRICE GUIDANCE: 3yr FRN 3mL+65bp area, 10yr T+130bp area, 30yr T+160bp area. Area is +/- 5bp. (dropped 3yr Fixed tranche)

LAUNCH: US$1.75bn 3-part. US$250m 3yr FRN 3mL+60bp, US$750m 10yr T+125bp, US$750m 30yr at T+155bp.

PRICED: US$1.75bn 3-part total.

- US$250m 3yr (9/14/2018) FRN. At 100, floats at 3mL+60bp. 1st pay: 12/14/2015.

- US$750m 3.375% cpn 10yr (9/15/2025). At 99.421, yld 3.444%. T+125bp. MWC+20bp. 1st pay: 3/15/2016.

- US$750m 4.375% cpn 30yr (9/15/2045). At 97.632, yld 4.520%. T+155bp. MWC+25bp. 1st pay: 3/15/2016.

BOOK: US$12.4bn total; 3-year US$1.3bn, 10-year US$5.2bn, 30-year US$5.9bn

NIC: 10-year: 3bp (vs. 3.125% '24s at G+122bp)

30-year: 15bp (vs. 4.25% '44s at T+140bp)

COMPS:

LOW 1.625% April 15, 2017 at G+27bp

LOW 3.125% September 15, 2024 at G+122bp

LOW 4.250% September 15, 2044 at T+140bp

HD (A2/A) 2.000% June 15, 2019 at G+64bp

HD (A2/A) 3.350% September 15, 2025 at G+112bp

HD (A2/A) 4.250% April 1, 2046 at T+139bp

MARRIOTT INTERNATIONAL INC (NasdaqGS: MAR - news)

Marriott International Inc, Baa2/BBB/BBB (s/s/s), announced a US$600m 2-tranche senior unsecured SEC-Reg note offering via active bookrunners JPMorgan, Wells Fargo (Hanover: NWT.HA - news) and US Bank. Structure will consist of a long 5-year (3/1/2021) and a 10-year (10/1/2025). Make whole calls apply to both tranches. Five-year has a 1-month par call, 10-year a 3-month par call. US$101 COC put. UOP: General corporate purposes, which may include working capital, capital expenditures, acquisitions, stock repurchases or repayment of outstanding commercial paper or other borrowings. Settlement date 9/14/2015.

IPTs: 5-year T+165bp area, 10-year T+190bp area.

PRICE GUIDANCE: Long 5yr T+145bp area, 10yr T+175bp area. Area is +/- 5bp.

LAUNCH: US$800m (upsized from US$600m) 2-part. US$450m 5yr at T+140bp, US$350m 10yr at T+170bp.

PRICED: US$800m 2-part total.

- US$450m 2.875% cpn 5yr (3/01/2021). At 99.755, yld 2.924%. T+140bp. MWC+25bp.

- US$350m 3.75% cpn 10yr (10/01/2025). At 98.876, yld 3.886%. T+170bp. MWC+25bp.

BOOK: US$2.4bn; 5-year US$1.4bn, 10-year US$1bn

NIC: 5-year: 10bp (vs. 3.25% '22s at G+145bp, 5/7s curve worth 15bp, FV=G+130bp)

10-year: 10bp (vs. 3.25% '22s at G+145bp, 7/10s curve worth 20bp, FV=G+165bp)

COMPS:

3.125% October 15, 2021 at G+138bp

3.250% September 15, 2022 at G+145bp

TYCO INTERNATIONAL FINANCE SA

Tyco International Finance SA (TYC), A3/BBB+/A-, announced a US$ benchmark SEC registered 2-part senior note offering that includes a 10.5yr (2/14/2026) and 30yr (9/14/2045) notes. The active bookrunners include Deutsche Bank (Other OTC: DBAGF - news) , Goldman Sachs (NYSE: GS-PB - news) and Morgan Stanley (Xetra: 885836 - news) . The notes include a MWC and 3mo par call on the 10.5yr tranche and 6mo par call on the 30yr.

Use of Proceeds: To fund the redemption price of the entire $364.3mm in aggregate principal amount the outstanding 8.5% Notes due 2019, and the remaining net proceeds for general corporate purposes, which may include acquisitions, repayment of debt, capital expenditures, investment in subsidiaries, repurchase of ordinary share and funding of legacy liabilities. Settlement T+3 (Sep 14, 2015).

IPTs: 10.5yr T+200bp area, 30yr T+240bp area

PRICE GUIDANCE: 10.5yr T+185bp area, 30yr T+225bp area. Area is +/- 5bp.

LAUNCH: US$1.5bn 2-part. US$750m 10.5yr at T+180bp, US$750m 30yr at T+220bp

PRICED: US$1.5bn 2-part total.

- US$750m 3.90% cpn 10.5yr (2/14/2026). At 99.284, yld 3.985%. T+180bp. MWC+30bp. 1st pay: 2/14/2016.

- US$750m 5.125% cpn 30yr (9/14/2045). At 99.469, yld 5.16%. T+220bp. MWC+35bp. 1st pay: 3/14/2016.

BOOK: US$6.8bn total; 10.5-year US$3.8bn, 30-year US$3bn

NIC: 10.5-year: 5bp (vs. 4.625% '21s at G+160bp, add 15bp for maturity extension, FV=G+175bp)

30-year: 5bp (10/30s curve worth 40bp, FV=T+215bp)

COMPS:

4.625% January 15, 2021 at G+160bp

KILROY REALTY LP

Kilroy Realty LP, Baa2/BBB (s/s), announced a US$325m 10-year (10/1/2025) SEC-Reg senior unsecured note offering via Bank of America, Barclays, JPMorgan and Wells Fargo. Par call 3-months prior to maturity, make-whole applies.

UOP: To refinance the operating partnership's 5.0% senior notes due 2015, and for general corporate purposes, which may include acquiring land and properties, funding development projects and repaying other outstanding indebtedness. Settlement date T+5.

IPTs: T+245bp area

PRICE GUIDANCE: T+230bp area (+/- 5bp)

LAUNCH: US$400m (upsized from US$325m) 10-year at T+225bp.

PRICED: US$400m 4.375% cpn 10-yr (10/01/2025). At 99.444, yld 4.444%. T+225bp. MWC+35bp. 1st pay: 4/01/2016.

BOOK: US$1.2bn

NIC: 7bp (vs. 4.25% '29s at T+233bp, subtract 15bp for maturity differential, FV=G+218bp)

COMPS:

4.250% August 15, 2029 at T+233bp

PIEDMONT NATURAL GAS

Piedmont Natural Gas Company Inc (PNY), A2/A, announced a US$150m (no grow) SEC registered 10-year (9/01/2025) senior unsecured note. The active bookrunners include BB&T and USB. The notes contain a MWC and a 3mo par call. UOP: to finance capital expenditures, to repay outstanding short-term, unsecured notes under our commercial paper program and for general corporate purposes. Settle: 9/14/2015.

IPTs: T+150bp area

PRICED: US$150m 3.60% cpn 10yr (9/01/2025). At 99.935, yld 3.608%. T+137.5bp. MWC+25bp.

BOOK: US$400m

NIC: 5.5bp (vs. 4.10% '34 at T+152bp, subtract 20bp for maturity differential, FV=G+132bp)

COMPS:

4.100% September 18, 2034 at T+152bp

BRANCH BANKING & TRUST CPO

Branch Banking & Trust Co (BBT), A2/A-A, announced a US$ benchmark 3(a)2 exempt 10-year (9/16/2025) subordinated bank notes. Active bookrunners are Barclays, BB&T, Citigroup and Deutsche Bank. Use of Proceeds: General Corporate Purpose. Settlement T+5 (Sep 16, 2015).

IPTs: T+165bp area

PRICE GUIDANCE: T+150bp area (+/- 5bp)

LAUNCH: US$1.25bn at T+145bp

PRICED: US$1.25bn 3.625% cpn 10yr (9/16/2025). At 99.933, yld 3.633%. T+145bp.

BOOK: Just over US$4bn

NIC: 10bp (vs. 2.25% '19s at G+95bp, add 40bp for curve adjustment, FV=G+135bp)

COMPS:

2.250% February 1, 2019 at G+95bp (sub)

MARSH & MCLENNAN COS INC

Marsh & McLennan Cos Inc, Baa1/A- (s/s), announced a US$500m 10.5-year (3/14/2026) SEC-Reg senior unsecured note offering via BAML/GS(act)/JPM/MS(pass). Make-whole call applies along with a par call 3-months prior to maturity. UOP: GCP. Settlement date 9/14/15.

IPTs: T+175-180bp

PRICE GUIDANCE: T+160bp area (+/- 2bp)

LAUNCH: US$600m (upsized from US$500m) at T+158bp.

PRICED: US$600m 3.75% cpn 10.5-yr (3/14/2026). At 99.923, yld 3.759%. T+158bp. MWC+25bp.

BOOK: US$2.8bn

NIC: 8bp (vs. 3.500% '25s at G+142bp, add 8bp for maturity extension, FV=G+150bp)

COMPS:

2.350% September 10, 2019 at G+104bp

3.500% March 10, 2025 at G+142bp

NORDEA BANK (Copenhagen: NDA-DKK.CO - news)

Nordea Bank AB, Aa3/AA-/AA- (s/n/s), announced a US$ benchmark multi-tranche senior unsecured note offering via Credit Suisse (Other OTC: CDSSF - news) , Goldman Sachs, JPMorgan and HSBC. Structure will consist of a 3-year (9/17/2018) fixed and/or frn and a 5-year (9/17/2020) fixed. 144a/RegS w/o reg rights. UOP: GCP. Settlement date 9/17/2015.

IPTs: 3-year FXD T+110bp area, 3-year FRN 3mL+equivalent, 5-year T+120bp area.

PRICE GUIDANCE: 3-year FXD T+95bp area (+/-2bp), 3-year FRN 3mL+equivalent, 5-year FXD T+105bp area (+/-2bp).

LAUNCH: US$2.25bn 3-part. US$500m 3yr FXD at T+93bp, US$500m 3yr FRN at 3mL+84bp, US$1.25bn 5yr at T+103bp.

PRICED: US$2.25bn 3-part total.

- US$500m 1.875% cpn 3yr (9/17/2018) FXD. At 99.722, yld 1.9701%. T+93bp

- US$500m 3yr (9/17/2018) FRN. At 100, floats at 3mL+84bp

- US$1.25bn 2.50% cpn 5yr (9/17/2020). At 99.762, yld 2.5507%. T+103bp.

BOOK: US$6.25bn total. 3-year FXD US$1.75bn, 3-year FRN US$1.75bn, 5-year FXD US$2.75bn

NIC: 3-year: 8bp (3/5s curve worth 10bp, FV=G+85bp)

5-year: 8bp (vs. 2.375% '19s at G+95bp)

COMPS:

2.375% April 4, 2019 at G+95bp

SOCIETE GENERALE (Swiss: 519928.SW - news)

Societe Generale, A2/A/A (s/n/s), announced a US$750m 5-year (9/16/20) senior unsecured self-led note offering. 144a/RegS without reg rights. UOP: GCP. Settlement date 9/16/2015.

IPTs: T+125-130bp

PRICE GUIDANCE: T+125bp area (+/-5bp)

LAUNCH: US$750m at T+120bp

PRICED: US$750m. Cpn 2.625%. Due 9/16/2020. Ip US$99.563. Yld 2.719%. T+120bp. First (Other OTC: FSTC - news) pay 3/16/2016. Cusip # 83368RAF9.

BOOK: US$1.75bn

NIC: 10bp (vs. 2.75% '20s at G+97bp, add 13bp for cap differential, FV=G+110bp)

COMPS:

CACIB (A2/A) 2.750% June 10, 2020 at G+97bp

BPCE 2.250% January 27, 2020 at G+93bp

PENTAIR FINANCE SA

Pentair Finance SA, Baa3/BBB (s/n), announced a US$ benchmark 3-part SEC-Reg senior unsecured note offering via Bank of America, Citigroup and JP Morgan as active. Structure will consist of a 3-year (9/15/2018) FXD, 5-year (9/15/2020) FXD and a 10-year (9/15/2025) FXD. Make-whole call applies to all tranches. The 5-year will contain a 1-month par call and the 10-year will contain a 3-month par call. Covenants: Change of Control, Step Provision Coupon Steps: 25bps per rating agency per notch below IG (LSE: IGG.L - news) , capped at 2%.

Fall-away at Baa1/BBB+. Special Redemption At 101% if the ERICO acquisition is not consummated on or prior to December 31, 2015 or the merger agreement relating to the acquisition of ERICO is terminated on or prior to December 31, 2015. UOP: To finance the ERICO acquisition, including the repayment of outstanding ERICO debt, for US$1.8bn. The Company intends to use any additional proceeds to repay outstanding commercial paper issued by Pentair Finance and for general corporate purposes. settlement date 9/16/15.

IPTs: 3-year T+187.5bp area, 5-year T+212.5bp area, 10-year T+262.5bp area.

PRICE GUIDANCE: 3yr T+187.5bp, 5yr T+212.5bp, 10yr T+262.5bp. Area is +/- 12.5bp.

LAUNCH: US$1.15bn 3-part. US$500m 3yr at T+187.5bp, US$400m 5yr at T+212.5bp, US$250m 10yr at T+250bp.

PRICED: US$1.15bn 3-part total.

- US$500m 2.90% cpn 3yr (9/15/2018). At 99.94, yld 2.921%. T+187.5bp. MWC+30bp.

- US$400m 3.625% cpn 5yr (9/15/2020). At 99.891, yld 3.649%. T+212.5bp. MWC+35bp.

- US$250m 4.65% cpn 10yr (9/15/2025). At 99.69, yld 4.69%. T+250bp. MWC+40bp.

BOOK: US$2.45bn total; 3-year US$800m, 5-year US$750m, 10-year US$900m.

COMPS:

PNR 2.650% December 1, 2019 at G+165bp

PNR 3.150% September 15, 2022 at G+193bp

IR (Baa2/BBB) 3.55 11/24 +167 G+175

JCI (Baa2/BBB+) 3® 7/24 +191 G+202

SOUTHWESTERN PUBLIC SERVICE COMPANY

Southwestern Public Service Company (XEL), A2/A/A-, announced a US$200m reopening of the 3.30% 6/15/2024 first mortgage bonds. The active bookrunners include Keybanc, Scotia and Wells Fargo. Opt Redeem: Par Call on or after December 15, 2023. Settle: T+5.

IPTs: T+115-120bp

PRICE GUIDANCE: T+110bp area (+/- 5bp)

LAUNCH: US$200m at T+105bp

PRICED: US$200m 3.30% 6/15/2024 tap. At 100.298, yld 3.258%. T+105bp. 1st pay: 12/15/2015.

BOOK: Just over US$300m

KOREA DEVELOPMENT BANK

The Korea Development Bank (KDB), Aa3/A+/AA- (p/p/s), announced a US$ 10-year SEC-Reg benchmark senior unsecured offering via Bank of America, BNP Paribas (Xetra: 887771 - news) , Credit Agricole (Swiss: ACA.SW - news) , JPMorgan, Korea Development Bank, Standard Chartered (BSE: 580001.BO - news) and UBS (NYSEArca: FBGX - news) .

IPTs: T+135bp area.

PRICE GUIDANCE: T+115-120bp.

LAUNCH: US$750m at T+115bp

PRICED: US$750m 3.375% cpn 10yr (9/16/2025). At 99.857, yld 3.392%. T+115bp.

BOOK: US$2.4bn

NIC: 8bp (vs. 3.75% '24s at G+107bp)

COMPS:

KDB 3.750% January 22, 2024 at G+107bp

EIBKOR 2.875% January 21, 2025 at T+105bp

EIBKOR 3.250% April 1, 2026 at T+109bp

CHEXIM

The Export-Import Bank of China "CHEXIM", Aa3/AA-, announced a US$ benchmark MTN program established under the name of Avi (Taiwan OTC: 3597.TWO - news) Funding Company Limited. A dollar-denominated 144a/REGS senior unsecured 2-part offering includes a 5-year and 10-year, with Bank of China (HKSE: 3988-OL.HK - news) , Barclays, BOCOM HK, HSBC, J.P. Morgan (Other OTC: MGHL - news) and Mitsubishi serving as Joint Global Coordinators and with ANZ, Bank of China, Barclays, BOCOM HK, HSBC, ING, J.P. Morgan, Mitsubishi and Westpac serving as Joint Lead Managers and Joint Book runners. Pricing expected today. Settlement 9/16/15.

IPTs: 5yr FXD T+135bp area, 10yr FXD T+165bp area

PRICE GUIDANCE: 5yr T+130bp area (+/- 5bp), 10yr T+160bp area (+/- 5bp)

LAUNCH: US$1bn 2-part.

- US$500m 5-year at T+130bp.

- US$500m 10-year at T+160bp

PRICED: US$1bn 2-part. First coupon 3/16/2016.

- US$500m. Cpn 2.85%. Due 9/16/2020. Ip US$99.898. Yld 2.872%. T+130bp. ISIN # US002364AA53.

- US$500m. Cpn 3.80%. Due 9/16/2025. Ip US$99.646. Yld 3.843%. T+160bp. ISIN # US002364AB37.

BOOK: US$2bn (evenly split)

CODELCO

Chilean state-owned copper miner Codelco is readying a senior unsecured bond. 144a/RegS without registration rights. Expected ratings are A1/AA-/A+ (neg/neg/stable) by Moody's, S&P and Fitch. Proceeds are being used for general corporate purposes, including capex and debt refinancing. Bookrunners are Bank of America Merrill Lynch, HSBC, and JP Morgan.

IPTs: T+275bp area

PRICE GUIDANCE: T+255bp area (+/- 5bp)

LAUNCH: US$2bn at T+250bp.

PRICED: US$2bn 4.5% 10-year (09/16/2025). At 98.458, 4.69% yld. T+250bp.

BOOK: Over US$6bn

ALLINA HEALTH

Allina Health, Aa3/AA-/AA-(s/s/s), announced a US$250m 30-year (11/15/2045) 3(a)4 exempt from SEC-Registration taxable bonds via sole-bookrunner JPMorgan. Co-managers are PJ/WFS/USB. The deal will contain a make-whole call, with a 6-month prior call. The trade will also have a US$50m/year sinking funds starting in 2041. Settlement date 9/16/2015.

IPTS: T+195bp area

PRICE GUIDANCE: T+190bp area (+/- 5bp)

LAUNCH: US$250m at T+185bp

PRICED: US$250m 4.805% cpn 30yr (11/15/2045). At 100, yld 4.805%. T+185bp. 1st cpn: 11/15/2015. (Reporting by Mike Gambale; editing by Shankar Ramakrishnan)