Barclays Share News (BARC)

By Mike Gambale and Danielle Robinson

NEW YORK, Nov 3 (IFR) - November's expected onslaught ofmore than US$110bn of deals could not have gotten off to asmoother start on Monday, with 10 issuers placing US$12.15bn ofbonds, some of which priced with negative new issue concessions.

Most of the borrowers, having seen a strong reception inrecent weeks for deals that at least start off with hefty20bp-plus new issue concessions, started out with attractiveinitial price thoughts, and were rewarded with large orderbooks.

The average new issue concession was 0.91bp on the day, withorder books covered by an average of 3.13 times.

Statoil received more than US$8bn of orders for its US$3bnfive-part offering and Barclays got US$6bn of orders at the peakof the bookbuilding process for US$2bn of five-year seniornotes.

"It's safe to say that in anticipation of the big supplythis month, a few deals offered a bit of a cushion to start thebook-build," said one senior syndicate manager.

"That struck the right chord with investors and allowedissuers to build order books that gave them leverage to pushpricing down to much tighter levels."

The spread move from IPTs to launch was roughly 7bp-15bpacross the 10 deals.

Double-A rated Statoil started out with the least amount ofspread over secondaries at the IPT stage, yet investors pouredinto its book because the levels were set on spreads that havegapped out as part of an energy sector selloff on the back oflower oil prices.

Statoil bonds in the 10-year part of the curve, forinstance, were trading around 75bp-80bp back in August,according to one market participant not involved in the deal,versus the 98bp pricing on its new US$500m 10-year.

That compared with IPTs of 110bp, a level rarely seen in thedouble A rating category these days.

Southwest Airlines provided investors a rare treat at theother end of the credit spectrum, with a Baa2/BBB issue ofUS$300m five-year notes.

Southwest is the only airline in the US that can access theinvestment grade market with unsecured senior notes, and as suchwas able to attract about US$2.2bn of orders and pull in pricingon its no-grow deal to 115bp, 25bp tighter than IPTs.

Comparables are difficult to come by, and investors weresteered towards a recent GATX long five-year trade, which wasquoted at around 120bp.

Deducting 5bp for the extra maturity of the GATX dealbrought fair value to around 115bp, suggesting that Southwestdidn't pay up for the deal.

Philip Morris International was able to price US$2bn ofthree, 10 and 30-year securities at 40bp, 105bp and 135bprespectively, 15bp tighter than IPTs across the tranches, onbooks of US$6.25bn.

At those levels the tobacco company paid about 1-6bp of newissue concession.

Barclays received an overwhelming reception to its US$2bn of2.75% five-year senior unsecured notes issued out of the holdingcompany.

European banks rarely issue out of the holding companylevel, making it difficult for UK banks to determine how much inspread it needs to compensate investors for buying notes at theholding company level that's not as close to the assets as thebank subsidiary.

The success of Barclays' deal suggested that 15bp is nearerto the correct level than 10bp, which is the usual amount USholding company financials will pay over their bank levelspreads, according to one financials coverage banker.

The US$6bn book gave Barclays enough leverage with investorsto pull in pricing by 10-15bp from IPTs to a final 120bp. At120bp Barclays appeared to pay 7bp in concession.

Discover Financial Services (Ba1/BBB-/BBB+) locked inpricing on a US$500m 10-year that looked to be about 7bp tighterthan fair value.

The new 3.95% November 2024s priced at 160bp from IPTs of180-185bp, after receiving about US$2.2bn of orders.

Fair value for a new 10-year was around 167bp, after takingits 3.85% 2022s at G+155bp and adding 12bp for the credit curve.

Tuesday is expected to be equally busy, as issuers rush toget ahead of October's payroll numbers on Friday.

"I think borrowers will be looking to front load as much asthey can this week," said one syndicate manager. "The marketfeels good and when you think about it, there are only two fulltrading weeks in November - this week and next."

STATOIL ASA

Statoil ASA, Aa2/AA- (s/s), announced a USD benchmarkSEC-Reg multi-part senior unsecured note offering via Bank ofAmerica, JP Morgan and Morgan Stanley. Make-whole call applies.Structure will consist of a 3-year (11/9/2017) fixed and/or FRN,5-year (11/8/2019), 7-year (11/10/2021) and a 10-year(11/10/2014). UOP: GCP.

IPTs: 3-year FXD: T+45-50bp, 5-year T+70bp area, 7-yearT+87.5bp area, 10-year: T+110bp area.

PRICE GUIDANCE: 3-year fixed T+40-45bp, 5-year T+65bp area(+/- 2bp), 7-year T+80-85bp, 10-year T+100bp area (+/- 2bp)

LAUNCH: US$3bn 5-part, US$750m 3-year fixed at T+40bp,US$500m 3-year FRN at 3mL+20bp, US$750m 5-year at T+63bp,US$500m 7-year at T+80bp, US$500m 10-year at T+98bp.

PRICED: US$3bn 5-part total.

- US$750m 1.35% 3-year (11/09/2017) fixed. At 99.736, yls1.34%. T+40bp. MWC+5bp. 1st pay: 5/09/2015.

- US$500m 3-year (11/09/2017) FRN. At 100, floats at3mL+20bp. 1st pay: 2/09/2015.

- US$750m 2.25% 5-year (11/08/2019). At 99.958, yld 2.259%.T+63bp. MWC+10bp. 1st pay: 5/08/2015.

- US$500m 2.75% 7-year (11/10/2021). At 99.363, yld 2.851%.T+80bp. MWC+12.5bp. 1st pay: 5/10/2015.

- US$500m 3.25% 10-year (11/10/2024). At 99.400, yld 3.321%.T+98bp. MWC+15bp. 1st pay: 5/10/2015.

BOOK: Just over $8bn

NIC: 3-year FXD: neg 2bp (3s/5s curve 23bp. Using 5.25% 19sat G+65 FV=42bp)

5-year: neg 2bp (5.25% 2019s at G+65bp)

7-year: neg 2bp 7s/10s curve worth 16bp, for fair value ofG+82bp)

10-year: flat

COMPS:

3.125% August 17, 2017 at G+38bp

5.250% April 15, 2019 at G+65bp

3.700% March 1, 2024 at G+98bp

PHILIP MORRIS

Philip Morris International Inc (PM), A2/A, announced a US$benchmark SEC registered 3-part offering that includes a 3-year(11/09/2017), 10-year (11/10/2024), 30-year (11/10/2044) seniorunsecured notes. The active bookrunners include Citigroup, HSBCand JP Morgan, with Deutsche Bank as a passive bookrunner. UOP:General corporate purposes, including to meet working capitalrequirements, repurchase common stock and/or refinance debt.Settle: T+5.

IPTs: 3yr +55bp area, 10yr +120bp area, 30yr +150bp area

PRICE GUIDANCE: 3-year T+40-45bp, 10-year T+110bp area (+/-5bp), 30-year T+ 140bp area (+/- 5bp)

LAUNCH: US$2bn 3-part. US$500m 3-year at T+40bp, US$750m10-year at T+105bp, US$750m 30-year at T+135bp.

PRICED: US$2bn 3-part total.

- US$500m 1.25% 3-year (11/09/2017). At 99.722, yld 1.345%.T+40bp.

- US$750m 3.25% 10-year (11/10/2024). At 98.771, yld 3.396%.T+105bp.

- US$750m 4.25% 30-year (11/10/2044). At 97.271, yld 4.415%.T+135bp.

BOOK: US$6.25bn total. 3-year: US$1.75bn, 10-year: US$2.5bn,30-year: US$2bn

NIC: 3-year: 1bp

10-year: 4bp

30-year: 6bp

COMPS:

1.125% August 21, 2017 at G+39bp

2.625% March 6, 2023 at G+101bp

4.125% March 4, 2043 at T+129bp

BARCLAYS PLC

Barclays PLC, A3/A-/A, announced a US$ benchmark SECregistered 5-year senior notes. Barc is sole bookrunner. UOP:GCP.

IPTs: T+130-135bp

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

LAUNCH: US$2bn T+120bp

PRICED: US$2bn 2.75% 5-year (11/08/2019). At 99.648, yld2.826%. T+120bp.

BOOK: Just under US$5.6bn final

NIC: 7bp (vs. 2.5% '19 G+93bp +5bp for maturity diff = 98bp+15bp for bank/holdco = FV 113bp)

COMPS:

2.500% February 15, 2019 at G+93bp (bank)

3.750% May 15, 2024 at G+132bp

LLOYDS (A1/A/A) 2.350% September 5, 2019 at G+86bp

ABBEY (A2/A/A) 2.350% September 10, 2019 at G+92bp

ABBEY (A2/A/A) 4.000% March 13 2024 at G+133bp

HSBC (A2/A+/AA-) 2.250% June 23, 2019 at G+69bp

HSBC (A2/A+/AA-) 3.500% June 23, 2024 at G+103bp

STANLN (A2/A+/AA-) 2.400% September 8, 2019 at G+96bp

GEORGIA PACIFIC

Georgia Pacific LLC (GP), Baa1/A+, announced a US$ benchmark144a/Reg S (no reg rights) 3-part offering that includes a5-year (11/15/2019), 7-year (11/15/2021), and long 10-year(3/01/2025) senior unsecured notes. The notes contain a MWC, a1mo par call on 5yr, 2mo par call on 7yr and 3mo par call on10yr tranche. The active bookrunners include BAML, Citi and WFS,with passive bookrunners CS, DB, JPM, MIZ and RBS. UOP: Forgeneral corporate purposes, including repayment of certain ofthe Company's indebtedness, and to pay fees andexpenses incurredin connection with this offering. Settle: T+3 (11/06/2014).

IPTs: 5yr +100bp area, 7yr +115bp area, 10yr +135bp area

PRICE GUIDANCE: 5-year T+95bp area, 7-year T+115bp area,10-year T+130bp area. Area ia +/- 5bp.

LAUNCH: US$2.1bn 3-part. US$850m 5-year at T+90bp, US$400m7-year at T+110bp, US$850m 10-year at T+125bp.

PRICED: US$2.1bn 3-part total.

- US$850m 2.539% 5-year (11/15/2019). At 100, yld 2.539%.T+90bp. MWC+15bp.

- US$400m 3.163% 7-year (11/15/2021). At 99.999, yld 3.163%.T+110bp. MWC+17.5bp.

- US$850m 3.60% 10-year (3/01/2025). At 99.961, yld 3.605%.T+125bp. MWC+20bp.

BOOK: Total book US$4.8bn. 5-year: US$1.8, 7-year: US$1bn,10-year: US$2bn

NIC: 5-year: negative 1bp to flat (5/10s curve worth 30bp,for fair value of G+91bp)

7-year: 1bp (vs. 5.40% '20, add 10bp for maturity extensionfor fair value of G+109bp)

10-year: 4bp (vs. 3.734% '23 comp, add 10bp for maturityextension, for fair value of G+121bp)

COMPS:

5.400% November 1, 2020 at G+99bp

3.734% July 15, 2023 at G+111bp

IP (Baa2/BBB) 3.650% June 15, 2024 at G+149bp

IP (Baa2/BBB) 4.800% June 15, 2044 at T+181bp

BMS (Baa2/BBB) 4.500% October 15, 2021 at G+117bp

AETNA INC

Aetna Inc, Baa2/A/A-, US$750m (no grow) SEC registered10-year (11/15/2024) senior unsecured notes. The activebookrunners include Barclays, Citigroup, JP Morgan and WellsFargo. UOP: Redeem outstanding 6.50% 2018 notes and for GCP.Settle: 11/10/2014.

IPTs: T+135bp area

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

LAUNCH: US$750m T+120bp

PRICED: US$750m 3.50% 10-year (11/15/2024). At 99.281, yld3.55%. T+120bp. MWC+20bp. 1st pay: 5/15/2015.

BOOK: US$2.2bn

NIC: negative 1-3bp (vs. 2.75% '22, add 8-10bp for maturitydifferential, for fair value of G+121-123bp. Or vs 4.75% '44,10/30s curve worth 20bp, for fair value of G+118bp)

COMPS:

2.200% March 15, 2019 at G+86bp

2.750% November 15, 2022 at G+113bp

4.750% March 15, 2044 at T+138bp

PACIFIC GAS & ELECTRIC CO.

Pacific Gas & Electric Company, A3/BBB/A- (s/n/s), announceda US$300m 30-year (3/15/2045) SEC-Reg senior unsecured notes viaBarclays, BNP Paribas, Morgan Stanley and US Bank. Make-wholecall applies, along with a par call 6-months prior to maturity.UOP: For general corporate purposes, including to repay aportion of our outstanding commercial paper. Settlement date11/6/2014.

IPTs: low 140s

GUIDANCE: T+130-135bp

LAUNCH: US$500m (upsized from US$300m) at T+130bp

PRICED: US$500m 4.30% long 30-year (3/15/2045). At 98.851,yld 4.369%. T+130bp. MWC+20bp. 1st pay: 3/15/2015.

BOOK: US$1.5bn

NIC: 3bp

COMPS:

4.750% February 15, 2044 at T+127bp (US$106)

DISCOVER FINANCIAL SERVICES

Discover Financial Services, Ba1/BBB-/BBB+, announced aUS$500m (no grow) SEC registered 10-year (11/06/2024) seniornotes. The notes contain a 3-month par call. The activebookrunners include Bank of America, Citigroup and DeutscheBank. UOP: GCP. Settle: 11/06/2014.

IPTs: T+180-185bp

PRICE GUIDANCE: T+165bp area (+/- 5bp)

LAUNCH: US$500m at T+160bp

PRICED: US$500m 3.95% 10-year (11/06/2024). At 99.926, yld3.959%. T+160bp. 1st pay: 5/06/2015.

BOOK: US$2.25bn

NIC: neg 7bp (vs. 3.85% '22 at G+155bp, +12bp for creditcurve = 167bp.)

COMPS:

3.850% November 15, 2022 at G+155bp (Holdco)

4.200% August 8, 2023 at G+135bp (Bank)

4.250% March 13, 2026 at G+144bp (Bank)

SOUTHWEST AIRLINES

Southwest Airlines Co (LUV), Baa2/BBB/BBB, announced aUS$300m (no grow) SEC registered 5-year (11/06/2019) seniorunsecured notes. The notes contain CoC put at US$101 and a1-month par call. The active bookrunners include JP Morgan andMorgan Stanley, with Citigroup as a passive bookrunner. UOP:GCP. Settle: 11/06/2014.

IPTs: T+140bp area

PRICE GUIDANCE: T+120bp area (+/- 5bp)

LAUNCH: US$300m at T+115bp

PRICED: US$300m 2.75% 5-year (11/06/2019). At 99.796, yld2.794%. T+115bp. MWC+20bp.

BOOK: US$2.2bn

NIC: flat (GATX comp at T+120bp minus 5bp for shortermaturity on new issue = FV of 115bp)

COMPS:

5.125% March 1, 2017 at G+97bp (US$108.25)

GATX 2.600% March 2020 at T+120bp

COMMONWEALTH EDISON

Commonwealth Edison Company (EXC), A2/A-/A-, announced aUS$250m (no grow) SEC registered 10-year (11/01/2024) firstmortgage bond, Series 117. The notes contain a make-whole calland a 3-month par call prior to maturity. The active bookrunnersRoyal Bank of Canada, US Bank and Wells Fargo, with CIBC as apassive bookrunner. Co-mgrs: Sumitomo, Loop, Cabrera. UOP: repayCP and GCP. Settle: T+5.

IPTs: T+95bp area

PRICE GUIDANCE: T+80bp (+/- 5bp)

LAUNCH: US$250m at T+75bp

PRICED: US$250m 3.10% 10-year (11/01/2024). At 99.915, yld3.11%. T+75bp. MWC+12.5bp.

BOOK: Just north of US$600m

NIC: flat (7/10s curve worth 10bp, for fair value of G+78bp.Subtract 3bp for dollar price, for fair value of G+75bp)

COMPS:

3.400% September 1, 2021 at G+68bp ($105)

MTN

South Africa's MTN (Baa2/BBB) has a debut US$750m 10-year144A/Reg S note via Bank of America, Deutsche Bank and RandMerchant Bank.

IPT: M/S+240bp area

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

LAUNCH: M/S+225bp

PRICED: US$750m. Cpn 4.755%. Due 11/11/2024. Ip par. Yld4.755%. S/D 11/11/2014.

NIC: Debut offering (Reporting by Mike Gambale, Anthony Rodriguez and DanielleRobinson; Editing by Shankar Ramakrishnan)