USD New Issues: Amgen mega-deal leave a mighty footprint

Hunter mammoth 11 Mar 2022
IG issuance (ex-SSA) last week topped a rather hefty $54bn as an Amgen mega-deal left a mighty big footprint in the primary market.

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  • Amgen mega-deal leave a mighty footprint

  • New issues

  • Recent issues


    Amgen mega-deal leave a mighty footprint  

    IG issuance (ex-SSA) last week topped a rather hefty $54bn – busting through the $25bn that had been anticipated – as one particular issuer left a mighty big footprint.   


    Indeed, the mammoth $24bn 8-part Amgen M&A driven multi-tranche was the largest deal of the week/year, and the largest since last year’s $30bn AT&T Discovery deal in March 2022. Demand for the deal was strong, with a reported book size topping out at around 3.75x, sources say. 


    Meanwhile, week over week, IG corporate spreads widened 3bps to 126bps while high yield spreads widened 14bps to 438bps, according to the ICE BofA Masters Indexes.


    Looking ahead, surveys are looking for a downsized $24bn to price in this holiday shortened week, sources say.  For the month of February, issuance volume now sits at roughly $98bn, just a smidgen short of the initial estimates with one week left in the month for more deal flow.



    New issues

    • OKB is working on a $1bn 5y deal via BofA, DB, JPM and RBC.  Aa1/AA+.  Price talk: MS + 39bps area.


    • Ryder is working on a 5y benchmark via BofA, BNPP, MIZ, RBC and TSI.  Baa2/BBB/BBB+.  Price talk +155-160bps area.


    • Constellation Energy Generation LLC is working on a 5y and 10y benchmark via Barclays, BNPP, MS and BNS.  Baa2/BBB.  Price talk: +165bps area, +205bps area.


    • Rabobank is working on a 6NC5 benchmark via Barclays, GS, HSBC, JPM, MS and RABO.  A3/A-/A+. Price talk: +155bps area.


    • Consolidated Edison is working on a $500m 10y deal via CIBC, JPM, Scotia and WFS.  Baa1/A-/A-.  Price talk: +145bps area.


    • CenterPoint Energy Resources is working on a 5y and 10y benchmark via MIZ, Scotia, TD, TSI and USB.  A3/BBB+/A-.   Price talk: +115bps area, +145bps area.


    • Mizuho is working 3-part 6.25NC5.25, 8.25NC7.25 and 11.25NC10.25 benchmark via MIZ and BofA. Price talk: +165bps area, +180bps area, +195bps area.


    • Mitsubishi HC Finance America LLC is working on a 10y benchmark via MS, Citi, JPM and BofA.  A3/A-.  Price talk: +185bps area.



    Recent issues


    • Feb 16: Trane Technologies priced a $700m 10y. Leads JPM, GS, BofA. Baa2/BBB. +142bps. 


    • Feb 16: Exelon priced a $2.5bn 3-part ($1bn 5y, $850m 10y and $650m 30y). Leads Barclays, Citi, GS, JPM and MD. Baa2/BBB/BBB. +112.5bps, +145bps, and+170bps.


    • Feb 16: Leidos priced a $750m 10y. Leads BofA. Citi, MUFG. Baa2/BBB-. +205bps.


    • Feb 16: AT&T priced a $1.75bn 3y NC1 fixed. Leads Mizuho, LOOP, PNC, SMBC and TD. Baa2/BBB/BBB+. +120bps.


    • Feb 16: Korean Housing Finance Corp priced a $1.3bn 2-part ($1bn 5y and $300m 10y). Leads Citi, Credit Ag, HSBC, JPM, SocGen and Standard Chartered. Aa2/AA/AA-. +70bps and +88bps.


    • Feb 16: NWB priced a $1.5bn 2y benchmark. Leads BMO, Daiwa, RBC and Scotia.  Aaa/AAA.  MS + 19bps.


    • Feb 16: Swedbank priced a $500m perp NC5 Tier 1 sub (Ba1/BBB-) at 7.625%. Leads are Barclays, BNPP, Citi, Swedbank and UBS.


    • Feb 15: Amgen Inc. (Baa1/BBB+) priced a $24bn 8-part ($2bn 2y, $1.5bn 3y NC1, $3.75bn 5y, $2.75bn 7y, $4.25bn 10y, $2.75bn 20y, $4.25bn 30y and $2.75bn 40y) to fund the acquisition of Horizon. Leads BofA, Citi, GS and Mizuho. +65bps, +115bps, +115bps, +135bps, +150bps, +165bps, +185bps, +200bps.


    • Feb 15: MUFG priced a $5bn TLAC 5-part ($1.65bn 3y NC2 fixed, $600m 3y NC2 floating, $1bn 6y NC5 fixed to fixed, $500m 8y NC7 fixed to fixed and $1.25bn 11y NC10 fixed to fixed). Leads MS and MUFG. A1/A-/A-. +108bps, SOFR +94bps, +138bps, +153bps, +163bps.


    • Feb 15:  Government of Sharjah (Ba1/BBB-) priced a $1bn long 9y Sustainability bond.  Leads ADCB, Citi, GIB, HSBC (B&D), IMI, INVBK and SMBC Nikko. +280bps.


    • Feb 14: Whirlpool priced a $300m 10y deal via BNPP, ING, MIZ, SMBC and SocGen.  Baa1/BBB/BBB.  +175bps.



    • Feb 13: PepsiCo priced a $3bn 5-part ($500m 3y, $350m 3y FRN, $650m long 5y, $1bn 10y and $500m 30y). Leads BofA, Citi and JPM. A1/A+. +35bps, SOFR +40bps, +55bps, +75bps and +87.5bps.


    • Feb 13: American Express priced a $1.5bn 2-part ($1.2bn 3y fixed and $300m 3y FRN). Leads Barclays, BofA and WFS. A2/BBB+/A.  +72bps and SOFR +76bps. 


    • Feb 13: CVS priced a $6bn 4-part ($1.5bn 3y, $1.5bn 7y, $1.75bn 10y and $1.25bn 30y).  Leads Barclays, BofA and JPM. Baa2/BBB. +90bps, +140bps, +155bps and +185bps.


    • Feb 13: Philip Morris priced a $5.25bn 4-part ($1.25bn 3y, $1bn 5y, $1.5bn 7y and $1.5bn 10y). Leads Barclays, BofA, Citi, DB, HSBC, Mizuho and SMBC. A2/A-/A. +80bps, +110bps, +145bps and +170bps.


    • Feb 13: Consumers Energy priced a $700m 10y FMB fixed. Leads Barclays, BofA, Mizuho. A1/A.  +97bps.


    • Feb 13: Tucson Electric Power priced a $375m 30y fixed. Leads MUFG, Scotia, TSI, USB and WFC. A3/A-. +175bps.


    • Feb 13: Jacobs priced a $500m 10y SLB fixed. Leads WS, BofA and MS. Baa2/BBB-. Price talk +220bps.


    • Feb 13: Union Pacific priced a $1bn 2-part ($500m 3y and $500m 30y). Leads Barclays, Citi, JPM and MS. A3/A-/A-. +55bps and +118bps.


    • Feb 13: McKesson priced a $500m 3y NC1. Leads WFS and BNPP. Baa1/BBB+/BBB+. +110bps. 


    • Feb 13: Kimberly-Clark priced a $350m 10y. Leads HSBC, JPM, MS, RBC. A2/A. +80bps.