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US IG CLOSE-Two deals for US$3.75bn price in high-grade market

By Mike Gambale

NEW YORK, April 13 (IFR) - Below is a recap of primary issuance activity in the US high-grade market on Monday:


Number of deals priced: 2

Total (Swiss: FP.SW - news) issuance volume: US$3.75bn

Average new issue concession: 5.63

Average book to cover: 3.25

STANDARD CHARTERED (Other OTC: SCBFF - news)

Standard Chartered, A2/A-/AA-, announced a US$ multi-tranche 144A/Reg S senior deal via Bank of America Merrill Lynch (b&d), BNP Paribas (Xetra: 887771 - news) , Deutsche Bank (Xetra: 514000 - news) and Standard Chartered Bank.

IPTs: 3-year FXD T+90-95bp, 3-year FRN 3mL+equivalent, 5-year FXD T+100bp area, 10-year FXD T+140bp area.

PRICE GUIDANCE: 3yr FXD T+90bp area, 3yr FRN Libor equiv, 5yr T+95bp area, 10yr T+135bp area. Area is +/- 5bp.

LAUNCH: US$3bn 4-part. US$750m 3yr FXD at T+85bp, US$250m 3yr FRN at 3mL+64bp, US$1.25bn 5yr at T+90bp, US$750m 10yr at T+130bp.

PRICED: US$3bn 4-part total. Settle: 4/17/2015.

- US$750m 1.70% 3yr FXD (4/17/2018). At 99.889, yld 1.738%. T+85bp.

- US$250m 3yr FRN (4/17/2018). At 100, floats at 3mL+64bp.

- US$1.25bn 2.25% 5yr (4/17/2020). At 99.897, yld 2.272%. T+90bp.

- US$750m 3.20% 10yr (4/17/2025). At 99.728, yld 3.232%. T+130bp.

BOOK: US$7.8bn

NIC (NasdaqGS: EGOV - news) : 3-year: 5-10bp (3/5s curve worth 5bp, FV=G+75-80bp)

5-year: 5-10bp (vs. outstanding 2.400% '19s at G+80bp. OR LLODYS 2.400% '20s at G+80bp, Lloyds is one notch higher with Moody's and S&P, add 5bp, FV=G+85bp)

10-year: 5-10bp (5/10s curve worth 40bp, FV=G+120-125bp OR vs. LLOYDS 2.400% '20s as G+85bp, adjusted for notch differential. Add 40bp for 5/10s curve, FV=G+125bp)

COMPS:

2.400% September 8, 2019 at G+80bp

BACR (A3/BBB/A) 2.000% March 16, 2018 at G+90bp

BACR (A3/BBB/A) 3.625% March 16, 2025 at G+150bp

LLOYDS (A1/A/A) 2.400% March 16, 2020 at G+80bp

LLOYDS (A1/A/A) 1.750% March 16, 2018 at G+70bp

NATIONAL BANK OF CANADA (Toronto: NA.TO - news)

National Bank of Canada has announced a new issue of US$750m (no grow) fixed-rate 4/20/2018 Canadian legislative covered bonds, backed by Canadian residential mortgages. Rated Aaa/AAA/AAA (Moody's DBRS/Fitch). Guaranteed by NBC Covered Bond Guarantor LP. BNP Paribas, Citigroup (NYSE: C - news) and NBF are joint leads, co-mgrs TBA. Settlement date 4/20/15.

IPT: Midswaps+30s

PRICE GUIDANCE: MS+32bp area (+/- 1bp)

LAUNCH: US$750m at MS+31bp

PRICED: US$750m 1.4% cpn 3yr (4/20/2018). At 99.944, yld 1.419%. MS+31bp.

BOOK: US$1.25bn

NIC: Flat (vs. last week's BNSF covered trade at M/S+37bp, subtract 10bp for 3/5s curve, FV=M/S+27bp. Add 4bp for market cap differential, FV=M/S+31bp)

MARKET CAP: NA US$15.6bn, BNSF US$61.8bn,

COMPS:

BNSF (Aaa/AAA) 1.850% April 14, 2020 at Midswaps+37bp (Reporting by Mike Gambale; Editing by Natalie Harrison)