* Financials account for almost half of issuance volumes
* Household names Walt Disney, Harley-Davidson also tapmarket
* Entergy trade over seven times oversubscribed
* LQD ETF up 0.05%
By Mike Gambale
NEW YORK, Jan 5 (IFR) - Below is a recap of primary issuanceactivity in the US high-grade market on Tuesday:
Number of deals priced: 8
Total issuance volume: US$15.775bn
Average new issue concession: 8.21
Total book to cover: 2.73
BARCLAYS PLC
Barclays Plc, rated Baa3/BBB/A, announced a US$ benchmark2-tranche SEC-Reg self-led senior notes deal. Structure willconsist of a 5-year and 10-year. UOP: GCP.
IPTS: 5-year T+165bp area, 10-year T+230bp area.
PRICE GUIDANCE: 5yr T+160bp area, 10yr T+225bp area. Area is+/- 5bp.
LAUNCH: US$4bn 2-part. US$1.5bn 5yr at T+155bp, US$2.5bn10yr at T+220bp.
PRICED: US$4bn 2-part total.
- US$1.5bn 3.25% cpn 5yr (1/12/21). At 99.945, yld 3.262%.T+155bp.
- US$2.5bn 4.375% cpn 10yr (1/12/26). At 99.512, yld 4.436%.T+220bp.
BOOK: Undisclosed
NIC: 5-year: 15bp (5/10s curve worth 65bp, FV=G+140bp)
10-year: 15bp (vs. 3.65% '25s at G+197bp, add 8bp formaturity extension, FV=G+205bp)
COMPS:
BACR 2.875% June 8, 2020 at G+132bp
BACR 3.650% March 16, 2025 at G+197bp
CITIGROUP INC
Citigroup Inc (C), Baa1/BBB+/A, announced a US$ benchmark10-year (1/12/2026) senior notes deal. Citigroup is sole book onthe deal. UOP: GCP. Settle: 1/12/2016.
IPT: T+165bp area
PRICE GUIDANCE: T+150bp area (+/-2 bp)
LAUNCH: US$2bn 10-year at T+148bp.
PRICED: US$2bn 3.70% cpn 10yr (1/12/2026). At 99.867, yld3.716%. T+148bp.
BOOK: US$3.5bn
NIC: 6bp (vs. 3.3% 2025s at G+142bp)
COMPS:
C 3.300% April 27 2025 at G+142bp
SANTANDER UK GROUP
Santander UK Group Holdings PLC (ABBEY), Baa1/BBB/A,announced a US$ benchmark SEC registered 5-year (1/08/2021)senior unsecured notes offering. The active bookrunners are Bankof America, Barclays, Credit Suisse, Santander and UBS. UOP:GCP. Settle: 1/08/2016.
IPTS: T+155-160bp
PRICE GUIDANCE: T+145bp area (+/-2bp).
LAUNCH: US$1bn at T+143bp
PRICED: US$1bn 3.125% cpn 5yr (1/08/2021). At 99.899, yld3.147%. T+143bp.
BOOK: US$3.25bn
NIC: 13bp (vs. 2.875% 2020s at G+130bp)
COMPS:
ABBEY 2.875% October 16, 2020 at G+130bp
ABBEY 2.000% August 24, 2018 at G+85bp
ABBEY 2.375% March 6, 2020 at G+87bp
ABBEY 4.000% March 13, 2024 at G+125bp
WALT DISNEY
The Walt Disney Co (DIS), A2/A/A, announced a US$ benchmarkSEC registered 5-part senior unsecured notes offering thatincludes a 3-year (1/08/2019) fixed/FRN, 5-year (2/12/2021)fixed, 10-year (2/13/2026) fixed and 30-year tap of the 4.125%6/01/2044. The active bookrunners are Citigroup and DeutscheBank, with Credit Suisse, Mizuho and Royal Bank of Canada as thepassive bookrunners. The notes contain a MWC. UOP: GCP. Settle:1/08/2016.
IPTs: 3yr FXD T+50bp area, 3yr FRN Libor equiv, 5yr T+ hi60s, 10yr T+ hi 90s, 30yr tap T+120bp area.
PRICE GUIDANCE: 3yr FXD T+45bp area, 3yr FRN Libor equiv,5yr T+65bp area, 10yr T+85bp area, 30yr T+110bp area. Area is+/- 5bp.
LAUNCH: US$3bn 5-part. US$350m 3yr FXD T+40bp, US$400m 3yrFRN 3mL+32bp, US$750m 5yr T+60bp, US$1bn 10yr T+80bp, US$500m30yr T+105bp
PRICED: US$3bn 5-part total.
- US$350m 1.65% cpn 3yr (1/08/2019) FXD. At 99.866, yld1.696%. T+40bp. MWC+5bp.
- US$400m 3yr (1/08/2019) FRN. At 100, floats at 3mL+32bp.
- US$750m 2.30% cpn 5yr (2/12/2021). At 99.903, yld 2.32%.T+60bp. MWC+10bp.
- US$1bn 3.0% cpn 10yr (2/13/2026). At 99.60, yld 3.046%.T+80bp. MWC+15bp.
- US$500m 4.125% cpn 30yr (6/01/2044). At 100.884, yld4.072%. T+105bp.
BOOK: Total book US$10.4bn
3-year FXD: US$2bn
3-year FRN: US$900m
5-year: US$2.8bn
10-year US$3.3bn
30-year: US$2.1bn
NIC: 3-year: 3bp (vs. 1.5% '18s at G+37bp)
5-year: 12bp (vs. 2.15% '20s at G+46bp)
10-year: 7bp (vs. 3.15% '25s at G+73bp)
COMPS:
DIS 1.500% September 17, 2018 at G+37bp
DIS 2.150% September 17, 2020 at G+48bp
DIS 3.150% September 17, 2025 at G+73bp
HARLEY DAVIDSON
Harley-Davidson Financial Services Inc (HOG), A3/A-/A,announced a US$ benchmark 144A/RegS 2-part medium-term notesthat includes a 3-year (1/15/2019) and 5-year (1/15/2021).Active bookrunners on the 3-year are JP Morgan, Mizuho, US Bankand Williams. Active bookrunners on the 5-year are Citigroup, JPMorgan and Wells Fargo. Optional Redemption: Make Whole Call;Change of Control at 101, and 1 month par call on the 5yrtranche. UOP: GCP.
IPTs: 3yr T+115bp area, 5yr T+135bp area
PRICE GUIDANCE: 3yr T+100bp area, 5yr T+120bp area. Area is+/- 5bp.
LAUNCH: US$1.2bn 2-part. US$600m 3yr at T+95bp, US$600m 5yrat T+115bp.
PRICED: US$1.2bn 2-part total.
- US$600m 2.25% cpn 3yr (1/15/2019). At 99.988, yld 2.254%.T+95bp.
- US$600m 2.85% cpn 5yr (1/15/2021). At 99.888, yld 2.874%.T+115bp.
BOOK: US$2.9bn total book; 3-year US$1.4bn, 5-year US$1.5bn
NIC: 3-year: 6bp (3s/5s curve worth 20bp, FV=G+89)
5-year: 6bp (vs. 2.15% '20s at G+109bp)
COMPS:
HOG 2.150% February 26, 2020 at G+109bp
ENTERGY ARKANSAS INC
Entergy Arkansas Inc, A3/A- (p/p), announced a US$325m (nogrow) SEC-Reg 10-year (4/1/2026) first mortgage bond via Bank ofNew York, Goldman Sachs, Scotia and Stephens. Co-managers areMischler/Regions/Willams Capital. Settlement date 1/8/2016.
IPTS: T+155bp area.
PRICE GUIDANCE: T+135bp area (+/- 5bp)
LAUNCH: US$325m at T+130bp
PRICED: US$325m 3.50% cpn 10yr (4/01/2026). At 99.671, yld3.539%. T+130bp.
BOOK: US$2.3bn
NIC: Flat (vs. 3.70% 2024s at G+130bp)
COMPS:
ETR 3.700% June 1, 2024 at G+130bp (FMB)
ETR 4.950% December 15 2044 at T+203bp
FORD MOTOR CREDIT COMPANY
Ford Motor Credit Co LLC (F), Baa3/BBB-/BBB-, announced aUS$ benchmark SEC registered 3-part senior unsecured notesoffering that includes a 3-year (1/08/2019) fixed and/or FRN anda 10-year (1/08/2026) fixed. The active bookrunners areBarclays, Credit Agricole, Citigroup, Goldman Sachs, JP Morgan,Lloyds and Morgan Stanley. UOP: GCP. Settle: 1/08/2016.
IPTs: 3yr FXD T+175-180bp, 3yr FRN Libor equiv, 10yr T+225bparea
PRICE GUIDANCE: 3yr FXD T+165bp (the #), 3yr FRN Liborequiv, 10yr T+215bp (the #)
LAUNCH: US$2.75bn 3-part. US$1.2bn 3yr FXD T+165bp, US$350m3yr FRN 3mL+158bp, US$1.2bn 10yr T+215bp
PRICED: US$2.75bn 3-part total.
- US$1.2bn 2.943% cpn 3yr (1/08/2019) FXD. At 100, yld2.943% yld. T+165bp.
- US$350m 3yr (1/08/2019) FRN. At 100, floats at 3mL+158bp.
- US$1.2bn 4.389% cpn 10yr (1/08/2026). At 100, yld 4.389%.T+215bp.
BOOK: Total book US$4.85bn
3-year FXD: US$2bn, 3-year FRN US$550m, 10-year US$2.3bn
NIC: 3-year: 10bp (3/10s curve worth 45bp, FV=G+155bp)
10-year: 15bp (vs. 4.134% 2025s at G+200bp)
COMPS:
F 3.200% January 15, 2021 at G+170bp
F 4.134% August 4, 2025 at G+200bp
JOHN DEERE CAPITAL CORP
John Deere Capital Corp (DE), A2/A, announced a US$benchmark SEC registered 3-part senior unsecured notes offeringthat includes a 3-year (1/08/2019) fixed and/or FRN and a 5-year(1/08/2021) fixed. The active bookrunners are Bank of America,Barclays and Royal Bank of Canada. UOP: GCP. Settle: 1/08/2016.
IPTs: 3-year T+80-85bp, 5-year T+100bp area.
PRICE GUIDANCE: 3yr T+70bp area, 3yr FRN Libor equiv, 5yrT+90bp area. Area is +/- 5bp.
LAUNCH: US$1.5bn 3-part. US$750m 3yr FXD at T+65bp, US$250m3yr FRN at 3mL+57bp, US$500m 5yr fxd at T+85bp.
PRICED: US$1.5bn 3-part total.
- US$750m 1.95% cpn 3yr (1/08/2019) FXD. At 99.994, yld1.952%. T+65bp.
- US$250m 3yr (1/08/2019) FRN. At 100, floats at 3mL+57bp
- US$500m 2.55% cpn 5yr (1/08/2021) FXD. At 99.897, yld2.572%. T+85bp.
BOOK: Total book US$4bn
3-year FRN: US$400m
3-year FXD: US$1.9bn
5-year FXD: US$1.7bn
NIC: 3-year: 2bp (vs. 1.75% '18s at G+63bp)
5-year: 5bp (vs. 2.45% '20s at G+80bp)
COMPS:
DE 1.750% August 10, 2018 at G+63bp
DE 2.450% September 11, 2020 at G+80bp (Reporting by Michael Gambale; Editing by Varghese Joseph)
Barclays (BARC)
