* HSBC raises another US$2bn
* No price progression on BGC
* Spirit 10-year price progession 50bp
* Spirit 9 times oversubscribed
* Dell 5.45% 2023s most actively traded
By Mike Gambale
NEW YORK, May 24 (IFR) - Below is a recap of primaryissuance activity in the US high-grade market on Tuesday:
Number of deals priced: 6
Total issuance: US$5.8bn
Average new issue concession: 2.67
Total book to cover: 3.29
HSBC
HSBC HOLDINGS PLC, issue rating Baa3/BBB, announced a US$benchmark SEC registered perpetual non-call 5-year (6/01/2021)subordinated contingent convertible. HSBC is sole bookrunner.Settlement: T+5 (6/01/2016).
IPT: 7.25% area
GUIDANCE: 7% area (+/- 12.5bp)
LAUNCH: US$2bn at 6.875%
PRICED: US$2bn 6.875% cpn perp NC5 at 100.
BOOK: Undisclosed
NICS: Flat (vs. 5.625% Perp at 6.50%, add 7.5bp for lowdollar price, FV = 6.575%. Add 30bp for maturity extension,FV=6.875%)
COMPS:
5.625% Perpetual NC5 at 6.50% (US$96)
SPIRIT AEROSYSTEMS
Spirit AeroSystems Inc (SPR), Baa3/BBB-, announced a US$300m(no grow) SEC registered 10-year (6/15/2026) senior unsecurednotes. Active bookrunners are Bank of America, Citigroup andMorgan Stanley. Passive bookrunners are Mizuho, Royal Bank ofCanada and Scotia. Co-Managers: WFS, MUFG, USB. The notes areguaranteed by Spirit AeroSystems Holdings Inc. OptionalRedemption: Make Whole Call; Par Call: 3 month(s) prior tomaturity.
UOP: To repurchase 2020 notes, (whether pursuant to thetender offer, redemption or otherwise); to pay related interest,fees and expenses. The company may initially use the proceedsfor general corporate purposes. Settlement: T+5 (Jun 01, 2016).
IPT: T+250bp area
GUIDANCE: T+200-212.5bp
LAUNCH: US$300m at T+200bp
PRICED: US$300m 3.85% cpn 10-yr (6/15/2026). At 99.924, yld3.859%. T+200bp. MWC+30bp.
BOOK: US$2.7bn
NICS: Flat (vs. HRS 3.832% '25s at G+153bp, add 7bp formaturity extension, FV=G+160bp. Add another 40bp for market capdifferential, FV=G+200bp)
MARKET CAP: SPR US$5.47bn, LLL US$10.6bn, HRS US$9.85bn
COMPS:
HRS (Baa3/BBB-) 3.832% April 27, 2025 at G+153bp
LLL (Baa3/BBB-) 3.950% May 28, 2024 at G+207bp
APOLLO MANAGEMENT
Apollo Management Holdings (APO), A/A-, announced a US$350m144A/RegS 10-year (5/27/2026) senior unsecured notes. The activebookrunners are Goldman Sachs and JPMorgan. The notes contain aMWC and a 3mo par call. UOP: To repay a portion of theoutstanding term loan under existing credit facilities, andgeneral corporate purposes. Settle: 5/27/2016.
IPT: T+262.5-275bp
PRICE GUIDANCE: T+255-260bp
LAUNCH: US$500m (upsized from US$350m) at T+255bp
PRICED: US$500m 4.40% 10yr (5/27/2026). At 99.912, yld4.411%. T+255bp.
BOOK: US$1bn
NICS: 8bp (vs. 4% 2024s at G+229bp, add 18bp for 2-yearextension, FV=G+247bp)
COMPS:
4.000% May 30, 2024 at G+229bp
DP WORLD CRESENT
DP World Crescent Limited, Baa3/BBB-, announced a US$benchmark 144A/RegS 7-year (5/31/2023) senior unsecured Sukukbond. Joint Bookrunners are Citigroup, Deutsche Bank (B&D),Dubai Islamic Bank, HSBC, Barclays, Emirates NBD Capital, FirstGulf Bank, J.P. Morgan, National Bank of Abu Dhabi, SG CIB.Co-Managers: Noor Bank, Samba Financial Group, Union NationalBank.
Use of Proceeds: Funding the tender of the existing Sukuk2017's and general corporate purposes of the obligor. Settle:5/31/2016.
IPTs: MS+262.5-275bp area
PRICE GUIDANCE: MS+237.5-250bp
LAUNCH: US$1.2bn at MS+237.5bp
PRICED: US$1.2bn 3.908% cpn 7yr (5/31/2023). At 100, YLD3.908%. MS+237.5bp.
BOOK: About US$2.5bn
THREE GORGES FINANCE
Three Gorges Finance I (Cayman Islands) Ltd, Aa3/-/A+,announced a US$ benchmark senior unsecured note offering viajoint-global coordinators JPMorgan, Deutsche Bank and ICBC.Joint-bookrunners are JPMorgan, Deutsche Bank, ICBC,/DB/ICBC/BOC/GS/UBS. Structure will consist of a 5-year and10-year. 144a/RegS. UOP: Refinancing of indebtedness and generalcorporate purposes. Guarantor China Three Gorges Corporation.6/02/2016.
IPT: 5-year T+100bp area, 10-year T+150bp area.
PRICE GUIDANCE: 5-year T+90bp (the #), 10-year T+130bp (the#)
LAUNCH: US$1.5bn 2-part. US$500m 5-year at T+90bp, US$1bn10-year at T+130bp
PRICED: US$1.5bn 2-part.
- US$500m 2.30% cpn 5-year (6/02/2021). At 99.962, yld2.308%. T+90bp
- US$1bn 3.15% cpn 10-year (6/02/2026). At 99.804, yld3.173%. T+130bp
BOOK: US$5.3bn total; 5-year US$2.1bn, 10-year US$3.2bn
BGC PARTNERS
BGC Partners Inc (BGCP), BBB-/BBB-, announced a US$250m144A/RegS w/ re rights 5-year senior unsecured notes. The activebookrunners are Bank of America and Cantor Fitzgerald. OptionalRedemption: Make Whole Call. Use of Proceeds: GCP, which mayinclude the repayment in full of the 4.50% convertible notesscheduled to mature on July 15, 2016, and to fund futurepotential acquisitions.
IPT: 5.25% area
LAUNCH: US$300m at 5.25%
PRICED: US$300m (upsized from US$250m) 5.125% cpn 5-yr(5/27/21). At 99.457, yld 5.25%. (Reporting by Mike Gambale; Editing by Varghese Joseph)