* Close to US$41bn in bonds sold in two days
* Shell just over 2 times covered
* WP Carey upsized to US$350m
* TJX upsized to US$1bn
* Most actively traded: KEY 5% 2026s
By Mike Gambale
NEW YORK, Sept 7 (IFR) - Below is a recap of primaryissuance activity in the US high-grade market on Wednesday:
Number of deals priced: 12
Total issuance volume: US$18.225bn
Average new issue concession: 2.22
Average book to cover: 3.03
SHELL INTERNATIONAL FINANCE BV
Shell International Finance BV, Aa2/A (n/s), announced a US$benchmark 5-part SEC-Reg senior unsecured note offering viaCITI/GS/JPM. Structure will consist of a 3-year (9/12/19) fixedand/or floater, 5-year (9/12/21), 10-year (9/12/26) and a30-year (9/12/46). Make-whole calls apply to all tranches. UOP:GCP. Settlement date 9/12/16.
IPTs: 3-year FXD T+70bp area, 3-year FRN 3ml+equivalent,5-year T+85bp area, 10-year T+125bp area, 30-year T+175bp area.
PRICE GUIDANCE: 3-year FXD T+55bp area (+/-2bp), 3-year FRN3mL+equivalent, 5-year T+75bp area (+/-5bp), 10-year T+110bparea (+/-2bp), 30-year T+160bp area (+/-5bp)
LAUNCH: US$4.75bn 5-part notes
- US$1bn 3-year FXD T+53bp
- US$500m 3-year FRN 3mL+35bp
- US$1bn 5-year at T+70bp
- US$1bn 10-year at T+108bp
- US$1.25bn 30-year at T+155bp.
PRICED: US$4.75bn 5-part notes.
- US$1bn. Cpn 1.375%. Due 9/12/2019. Ip US$99.971. Yld1.385%. T+53bp. MWC T+10bp.
- US$500m. Cpn 3mL+35bp. Due 9/12/2019. Ip par. Yld3mL+35bp.
- US$1bn. Cpn 1.80%. Due 9/12/2021. Ip US$99.653. Yld1.823%. T+70bp. MWC T+15bp.
- US$1bn. Cpn 2.50%. Due 9/12/2026. Ip US$98.985. Yld2.616%. T+108bp. MWC T+20bp.
- US$1.25bn. Cpn 3.75%. Due 9/12/2046. Ip US$99.536. Yld3.776%. T+155bp. MWC T+25bp.
BOOK: Total US$12.03bn; 3-year FRN US$730m, 3-year FXDUS$1.5bn, 5-year US$2.1bn, 10-year US$3.3bn, 30-year US$4.4bn
NIC: 3-year: 2bp (3/5s curve worth 15bp, FV=G+51bp)
5-year: 4bp (vs. 1.875% '21s at G+66bp)
10-year: 3bp (vs. 2.875% '26s at G+105bp)
30-year: 1bp (vs. 4% '46s at T+154bp)
COMPS:
1.875% May 10, 2021 at G+66bp
2.875% May 10, 2026 at G+105bp
4.000% May 10, 2046 at T+154bp
THE ROYAL BANK OF SCOTLAND GROUP
The Royal Bank of Scotland Group announced SEC-registered USdollar benchmark bonds. Seven-year senior holdco notes expectedto be rated Ba1/BBB-/BBB+. Moody's and S&P have positiveoutlooks, and Fitch has a stable outlook on RBS Group. RBS, BNPParibas, Bank of America Merrill Lynch and Morgan Stanley arelead managers.
IPTS: High T+275bp area
PRICE GUIDANCE: T+255bp area (+/-5bp)
LAUNCH: US$2.65bn 7-year notes at T+250bp
PRICED: US$2.65bn. Cpn 3.875%. Due 9/12/2023. Ip US$99.970.Yld 3.88%. T+250bp. First pay 3/12/2017.
BOOK: US$8.8bn
NIC: Flat (vs. 4.8% '26s at G+265bp, subtract 15bp for 7/10scurve, FV=G+250bp)
COMPS:
4.800% April 5, 2026 at G+265bp
NATIONWIDE BUILDING SOCIETY
Nationwide Building Society, rated Baa1/BBB/A-, announced aUS$ benchmark 10-year (9/14/2026) subordinated Tier 2 notes viaBank of America, Barclays, Citigroup, JPMorgan and UBS.144a/RegS. UOP: GCP. Settlement date 9/14/2016.
IPTs: High T+275bp area
PRICE GUIDANCE: T+255bp area (+/-5bp)
LAUNCH: US$1.25bn at T+250bp
PRICED: US$1.25bn. Cpn 4.00%. Due 9/14/2026. Ip US$99.706.Yld 4.036%. T+250bp
BOOK: US$7bn
NIC: Flat (vs. 3.9% 2025s at G+145bp, add 5bp for maturityextension, FV=G+150bp. Sr/sub differential worth 100bp,FV=G+250bp)
COMPS:
3.900% July 21, 2025 at G+145bp
MIZUHO FINANCIAL GROUP
Mizuho Financial Group, rated A1/A-, mandated Mizuho, JPMorgan and Goldman Sachs to lead manage a US dollar five-yearfixed and/or five-year FRN and a 10-year fixed rate US dollarbenchmark.
IPTS: T+135bp area and the Libor equivalent for thefive-year fixed/FRN and 150bp area over USTs on the 10-year.
PRICE GUIDANCE: 5-year fxd T+120bp area, 5-year FRN3mL+equivalent, 10-year T+135bp area. Area = (+/-5bp).
LAUNCH: US$3.25bn 3-part notes
- US$1.25bn 5-year FXD T+115bp
- US$1bn 5-year FRN 3mL+114bp
- US$1bn 10-year FXD T+130bp
PRICED: US$3.25bn 3-part notes.
- US$1.25bn. Cpn 2.273%. Due 9/13/2021. Ip par. Yld 2.273%.T+115bp
- US$1bn. Cpn 3mL+114bp. Due 9/13/2021. Ip par. Yld3mL+114bp.
- US$1bn. Cpn 2.839%. Due 9/13/2026. Ip par. Yld 2.839%.T+130bp
BOOK: US$9.2bn total; 3-year FRN US$2.6bn, 3-year FXDUS$3.2bn, 5-year US$3.4bn
NIC: 5-year FXD: 1bp (vs. 2.632% '21s at G+114bp)
10-year: 6bp (vs. 3.477% '26s at G+124bp)
COMPS:
2.632% April 12, 2021 at G+114bp
3.477% April 12, 2026 at G+124bp
NISSAN MOTOR ACCEPTANCE CORP
Nissan Motor Acceptance Corporation, A3/A-, announced a US$benchmark 3-part senior unsecured notes via CITI/HSBC/MIZ/MUFG.Structure will include a 3-year fixed and/or floating and a5-year fixed. 144A/Reg S bonds. Settlement date 9/14/16.
IPTs: 3-year fixed T+95bp area, 3-year FRN 3mL+equivalent,5-year T+105bp area.
PRICE GUIDANCE: 3-year FXD T+73bp area, 3-year FRN3mL+equivalent, 5-year T+85bp area. Area = (+/-3bp).
LAUNCH: US$1.5bn 3-part notes.
- US$500m at T+70bp
- US$500m at 3mL+52bp
- US$500m at T+82bp
PRICED: US$1.5bn 3-part notes.
- US$500m. Cpn 1.55%. Due 9/13/2019. Ip US$99.991. Yld1.553%. T+70bp. First pay 3/13/2017.
- US$500m. Cpn 3mL+52bp. Due 9/13/2019. Ip par. Yld3mL+52bp. First pay 12/13/2016.
- US$500m. Cpn 1.90%. Due 9/14/2021. Ip US$99.810. Yld1.940%. T+82bp. First pay 3/14/2017.
BOOK: US$5.15bn total; 3-year FRN US$1.2bn, 3-year FXDUS$1.75bn, 5-year US$2.2bn
NIC: 3-year FXD: Flat (vs. 2% 2019s at G+70bp)
5-year: Flat (vs. 2.55% 2021s at G+82bp)
COMPS:
2.000% March 8, 2019 at G+70bp
2.550% March 8, 2021 at G+82bp
VALERO ENERGY CORP
Valero Energy Corp, Baa2/BBB/BBB (s/s/s), announced a US$benchmark 10-year (9/15/2026) SEC-Reg senior unsecured noteoffering via Barclays, Citigroup, Mizuho and Royal Bank ofCanada as active, with Mitsubishi, Wells Fargo, JPMorgan andMorgan Stanley as passive. Make-whole call applies, along with a3-month par call prior to maturity. UOP: Refinance upcomingmaturities and general corporate purposes. Settlement date9/12/2016.
IPTs: T+200bp area
PRICE GUIDANCE: T+190bp (the #)
LAUNCH: US$1.25bn 10-year at T+190bp
PRICED: US$1.25bn. Cpn 3.400%. Due 9/15/2026. Ip US$99.655.Yld 3.441%. T+190bp. First pay 3/15/2017. MWC T+30bp.
BOOK: US$3bn
NIC: 5bp (vs. 3.65% '25s at G+175bp, add 10bp for maturityextension, FV=G+185bp)
COMPS:
3.650% March 15, 2025 at G+175bp
THE TJX COS INC
The TJX Cos Inc, rated A2/A+ (s/s), announced a US$750m10-year (9/15/2026) SEC-Reg senior unsecured notes via Bank ofAmerica, Deutsche Bank, JPMorgan and Wells Fargo. Make-wholecall applies, along with 3-month par call prior to maturity.US$101 COC put. UOP: To redeem US$375m aggregate principalamount of the 6.950% notes due April 15, 2019 and for workingcapital and other general corporate purposes. Settlement date9/12/16.
IPTS: T+87.5bp area.
PRICE GUIDANCE: T+80bp area (+/-2bp)
LAUNCH: US$1bn (upsized from US$750m) 10yr at T+80bp.
PRICED: US$1bn. Cpn 2.25%. Due 9/15/2026. Ip US$99.254. Yld2.334%. T+80bp. MWC T+15bp.
BOOK: US$1.75bn
NIC: 2bp (vs. 2.5% 2023s at G+68bp. 7/10s curve worth 10bp,FV=G+78bp)
COMPS:
2.500% May 15, 2023 at G+68bp
DR. PEPPER SNAPPLE GROUP
Dr. Pepper Snapple Group Inc, Baa1/BBB+ (s/s), announced aUS$400m SEC-Reg 10-year (9/15/2026) senior unsecured notes viaCredit Suisse, JPMorgan and Morgan Stanley. Make-whole callapplies, along with a 3-month par call prior to maturity. US$101COC put.
UOP: Redeem US$360m 6.82% 2018 notes, and pay relatedredemption premium, accrued interest and associated fees andexpenses. Any net proceeds not used to redeem the 2018 noteswill be used for general corporate purposes, which may includeshare repurchase, cap ex working capital, future acquisitionsand investments. Settlement date 9/16/2016.
PRICE GUIDANCE: T+110bp area (+/-5bp)
LAUNCH: US$400m at T+105bp
PRICED: US$400m. Cpn 2.55%. Due 9/15/2026. Ip US$99.676. Yld2.587%. T+105bp.
BOOK: US$3bn
NIC: 4bp (vs. 3.4% '25s at G+101bp)
COMPS:
3.400% November 15, 2025 at G+101bp
NEW YORK LIFE GLOBAL FUNDING
New York Life Global Funding, rated Aaa/AA+, announced a US$benchmark 5-year (9/14/2021) notes via Barclays, Goldman Sachsand JPMorgan. UOP: GCP.
IPTS: Low T+70s
PRICE GUIDANCE: T+65bp area (+/-3bp)
LAUNCH: US$750m at T+62bp
PRICED: US$750m. Cpn 1.25%. Due 9/14/21. Ip US$99.537. Yld1.3457%. T+62bp.
BOOK: US$1.2bn
NIC: 4bp (vs. 2% '21s at G+58bp)
COMPS:
2.000% April 13, 2021 at G+58bp
PROTECTIVE LIFE GLOBAL FUNDING
Protective Life Global Funding, A2/AA- (s/s), announced aUS$600m 2-part FA-backed note offering via BARC/MS/USB.Structure will consist of a US$300m 3-year (6/13/19) and aUS$300m 5-year (9/14/21) notes. 144a/RegS w/o reg rights. UOP:To purchase relevant funding agreements from Protective LifeInsurance Company. Settlement date 9/14/16.
IPTS: 3-year T+85bp area, 5-year T+high 90s
PRICE GUIDANCE: 3-year T+72bp area, 5-year T+90bp area. Area= (+/-2bp).
LAUNCH: US$650m (upsized from US$600m) 2-part notes.
- US$350m (upsized from US$300m) 3-year at T+70bp.
- US$300m 5-year at T+88bp.
PRICED: US$650m (upsized from US$600m) 2-part notes. Firstpay 3/14/2017.
- US$350m (upsized from US$300m). Cpn 1.555%. Due 9/13/19.Ip par. Yld 1.555%. T+70bp.
- US$300m. Cpn 1.999%. Due 9/14/21. Ip par. Yld 1.999%.T+88bp.
BOOK: US$1bn total; 3-year US$600m, 5-year US$400m
NIC: 3-year: 2bp (vs. 1.722% '19s at G+68bp)
5-year: 5bp (vs. 2.7% '20s at G+83bp)
COMPS:
1.722% April 15, 2019 at G+68bp
2.700% November 25, 2020 at G+83bp
PUBLIC SERVICE ELECTRIC & GAS CO
Public Service Electric & Gas Co., Aa3/A (s/s), announced aUS$425m (no grow) SEC-Reg 10-year (9/15/2026) FMB notes viaCredit Suisse, Mitsubishi and Wells Fargo. Make-whole callapplies, along with a 3-month par call prior to maturity. UOP:GCP. Settlement date 9/13/2016.
IPTS: T+low 90s
PRICE GUIDANCE: T+75-80bp
LAUNCH: US$425m 10-year notes at T+75bp.
PRICED: US$425m. Cpn 2.25%. Due 9/15/2026. Ip US$99.671. Yld2.287%. T+75bp. MWC T+15bp. First pay 3/15/2017.
BOOK: US$1.8bn
NIC: 1bp (vs. 3% '25s at G+74bp)
COMPS:
3.000% May 15, 2025 at G+74bp
W.P.CAREY
W.P. Carey, rated Baa2/BBB (s/s), announced a US$250mSEC-Reg 10-year (10/1/2026) senior unsecured note offering viaBARC/CITI/JPM. Make-whole call applies, along with a 3-month parcall. UOP: offering to reduce amounts outstanding under seniorunsecured credit facility-revolver and for general corporatepurposes, including the potential future repayment of mortgages.
As of August 30, 2016, the amount outstanding under seniorunsecured credit facility-revolver, which matures on January 31,2018, was approximately US$742m; such borrowings bore interestat approximately 1.1% per annum. Settlement date 9/12/16.
IPTS: T+300bp area
PRICE GUIDANCE: T+280bp area (+/-5bp)
LAUNCH: US$350m (upsized from US$250m) at T+275bp
PRICED: US$350m. Cpn 4.25%. Due 10/1/2026. Ip US$99.682. Yld4.289%. T+275bp. MWC T+45bp. First pay 4/1/2017.
BOOK: US$1.3bn
NIC: Flat (vs. 4% '25s at G+265bp, add 10bp for maturityextension, FV=G+275bp)
COMPS:
4.000% February 1, 2025 at G+265bp
USD HIGH-GRADE PIPELINE
MTN Group, multinational mobile operator headquartered inJohannesburg, rated Baa3 (neg) by Moody's and BBB- (neg) by S&P,has mandated BAML, Barclays, Citi and Standard Bank to arrangeinvestor meetings in the US and UK commencing 9 September inconnection with an offering of intermediate tenorUSD-denominated benchmark Reg S/144A senior unsecured fixed ratenotes.
Such transaction is expected to follow subject to marketconditions. A preliminary prospectus is available. Stabilisationregulations including FCA/ICMA apply
NongHyup Bank, rated A1/A+ (Moody's/S&P), is marketing a5-year US dollar benchmark at around 100bp over Treasuries.The senior unsecured bonds are expected to be rated on par withthe issuer.
Citigroup, Credit Agricole, HSBC, JP Morgan, Nomura and UBSare joint bookrunners of the 144A/Reg S notes.
The Toronto-Dominion Bank, rated Aa1 (Moody's), AA- (S&P)and AA (DBRS), has mandated TD Securities, Goldman Sachs, J.P.Morgan, and Wells Fargo Securities on a benchmark SEC-Registered15NC10 USD-denominated Non-Viability Contingent Capital ("NVCC")Tier 2 transaction. The expected security ratings are A2(Moody's), A- (S&P) and AL (DBRS). The prospectus supplement hasbeen filed on Edgar. A NetRoadshow presentation has also beenactivated and the management team will be available fortelephonic investor calls on September 6 and 7.
Korea National Oil Corp, Aa2/AA-, will meet investors thismonth for an offering of US dollar 144a/Reg S bonds. Theroadshow begins in Hong Kong on September 5 before heading toSingapore, Frankfurt and London. On September 6, it will meetinvestors in New York and then Philadelphia, Boston and LosAngeles. Proceeds will refinance debt maturing this year.
Industrial Bank of Korea, Aa2/AA-, hired HSBC and Nomura toarrange fixed income investor meetings that took place in HongKong and Singapore on Monday in preparation for a 144a/RegSdollar-denominated offering.
Woori Bank, A2/A-, hired Bank of America/Merrill Lynch,Citigroup, Commerzbank, Credit Agricole CIB, HSBC and Nomura toarrange fixed-income investor meetings that took place in theUS, Europe and Asia from July 11 to July 20. (Reporting by Mike Gambale; editing by Shankar Ramakrishnan)
