USD New Issues: IG issuers flood back in after PCE

Floodgate 9 Nov 2020
More than a dozen IG issuers have announced this morning, including Yankee FIGs NatWest and Lloyds. Around $40bn is expected for the week.

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  • IG issuers flood back in after PCE

  • New issues

  • Recent issues


    IG issuers flood back in after PCE  

    IG new issuance (ex-SSA) saw $22.5bn price in the shortened week last week, a tad under the $25bn that had been expected. Thursday saw the busiest session of the week as $13.875bn priced while Friday’s strong PCE reading caused would be issuers to stay on the sidelines, sources say.


    Week over week, IG corporate spreads widened 2bps to 128bps while high yield spreads narrowed 10bps to 428bps, according to the ICE BofA Masters indexes.


    Today is off to a strong start with more than a dozen issuers announcing, though many of them smaller size. Yankee FIG issuance today includes NatWest and Lloyds. For the coming week, surveys expect a robust $40bn. February MTD currently stands at $120.55bn, already above the $100bn that was anticipated.



    New issues


    • NatWest plans a $TBA 2-part (4y NC3 fixed to fixed and a 11y NC10 fixed to fixed). Leads BofA, GS, JPM, NatWest, UBS and WFS. A3/BBB/A. Price talk +165bps and +240bps area.


    • Lloyds is working on a $TBA 6y NC5 fixed to fixed. Leads Lloyds, Mizuho, MS. TD and WFC. A3/BBB+/A.


    • John Deere is working on a $TBA 4-part (2y, 3y, 3y FRN and 5y). Leads Barclays, CACIB, Citi and MUFG. A2/A/A+. Price talk +55bps, +70bps, SOFR equivalent and +90bps area.


    • Colgate Palmolive is working on a $1.5bn 3-part (3y, 5y and 10y). No grow. Leads BNPP, GS, MS, WFC. Aa3/AA-. Price talk +55/60bps, +65/70bps and +90/95bps.


    • Arrow Electronics plans a $TBA 3y NC1. Leads ING, JPM, Mizuho and PNC. Baa3/BBB-/BBB-. Price talk +190bps area.


    • Southern California is working on a $TBA 2-part FMB (5y and 30y). Leads BNPP, JPM, SMBC and WFS.  Price talk +140bps and +210bps.


    • American Electric Power plans a $TBA 10y. Leads Barclays, Key, MUFG, TD and USB. Baa2/BBB+/BBB. Price talk +195bps area.


    • DTE Electric is working on a $TBA 2-part (10y and 30y). Leads BofA, Scotia, TD Sec and TSI. Aa3/A/A+. Price talk +145bps and +170bps area.


    • Air Products plans a $TBA 10y. Leads Citi, JPM, Mizuho and SMBC. A2/A. Price talk +120bps area.


    • FiServ is working on a $TBA 2-part (5y and 10y). Leads BofA, JPM, PNC and USB. Price talk +150bps and +195bps area.


    • Humana plans a $TBA 2-part (3y NC1 and 30y). Leads Barclays, Citi, MS, USB and WFC. Baa3/BBB+/BBB. Price talk +145bps and +210/215bps area.  


    • Arthur J. Gallagher is working on a $TBA 2-part (10y and 30y). Leads BofA and Citi. Price talk +185bps and +215bps area.  


    • Union Electric plans a $500m (no grow) 30y FMB. Leads Key, BofA, RBCCM, TD and USB. A2/A. Price talk +175bps area.


    • Vulcan Materials is working on a $TBA  3y NC1 fixed. Leads BofA and TSI. Baa2/BBB+/BBB. Price talk +150bps area.


    • Williams Co. is working on a $TBA 2-part (3y and 10y). Leads DB, JPM, Mizuho and MS. Baa2/BBB/BBB. Price talk +125bps and +200bps area.


    • PPL Electric Utilities plans a $TBA 2-part (10y and 30y). Leads Barclays, PNC, Scotia and USB. A1/A+. Price talk +140/145bps and +165/170bps area.    


    • Bank of England plans a $TBA 3y. Leads BofA, DB, RBCCM and TD. Aa3/AA/AA-.  Price talk +16bps. Expected to price tomorrow.   


    • Air Lease Corp has mandated Bank ABC and Dubai Islamic Bank to structure a Senior 5y 144A Sukuk Bond following investor meetings in the UAE, Qatar and Saudi Arabia.


    • Teva Pharmaceutical plans a four part EUR/USD bond issue following roadshows today and tomorrow.  The deal will consist of a $500m, 6.5y tranche, a $500m, 8.5y tranche and two €500m tranches of matching maturities. via Citi, Goldman, Mizuho, M UFG and PNC. Via Citi, Goldman, Mizuho, MUFG and PNC.


    Recent issues


    • Feb 23: Eli Lily priced a 4-part $750M 3NC1, $1bn 10y, $1.25bn 30y and $1bn 40y benchmark via CS, GS, JPM, and MS.  A2/A+.  Priced at +65bps, +85bps, +100bps, +115bps.


    • Feb 23: Raytheon Technologies priced a $500m 3y, $1.25bn 10y and $1.25bn 30y benchmark via Citi, DB, GS and MS.  Baa1/A-.  Priced at +60bps, +130bps, +150bps.


    • Feb 23: Assurant priced a $175m 3y deal.  Baa2/BBB.  Priced at +170bps.


    • Feb 23: Kellogg priced a $400m deal via BofA, Barclays and Citi.  Baa2/BBB. Priced at +140bps


    • Feb 23: Aon priced a $750m 10y benchmark via BofA, HSBC and MS.  Baa2/A-/BBB+.  Priced at +147bps.


    • Feb 23: Trimble priced an $800m 10y benchmark via WFS and BofA.  Baa3/BBB-.  Priced at +225bps.


    • Feb 23: BHP Billiton Finance USA Ltd. priced a $1bn 3y, $1bn 5y and $750m 10y benchmark via Barclays, BofA, BNPP, MUFG and Santan.  A2/A-.  Priced at +55bps, +75bps, +105bps.


    • Feb 23: UPS priced a $900m 10y and $1.1bn 30y benchmark via Barclays, Citi, MS, SocGen and WFC.  A2/A.  Priced at +100bps, +120bps.


    • Feb 22: OKB priced on a $1bn 5y deal via BofA, DB, JPM and RBC.  Aa1/AA+.  Priced at MS + 39bps area.


    • Feb 22: Eastman Chemical priced a $500m 10y green deal via BofA, Citi, JPM and MIZ.  Baa2/BBB/BBB-.  Priced at +185bps.


    • Feb 22: Prudential Financial priced a $500m 30NC10 deal via GS, HSBC, JPM and MS.  Baa1/BBB+/BBB.  Priced at 6.75%.


    • Feb 22: NextEra Energy Capital priced a $2.5bn 2y deal via WFS, BofA and JPM.  Baa1/BBB+/A-.  Priced at +120bps.


    • Feb 21: Consolidated Edison priced a $500m 10y deal via CIBC, JPM, Scotia and WFS.  Baa1/A-/A-.  Priced at +125bps.


    • Feb 21: Ryder priced a $500m 5y benchmark via BofA, BNPP, MIZ, RBC and TSI.  Baa2/BBB/BBB+.  Priced at +153bps.


    • Feb 21: Rabobank priced a $1bn 6NC5 benchmark via Barclays, GS, HSBC, JPM, MS and RABO.  A3/A-/A+. Priced at +140bps.


    • Feb 21: Constellation Energy Generation LLC priced a $750m 5y and $600m 10y benchmark via Barclays, BNPP, MS and BNS.  Baa2/BBB.  Priced at +143bps and +185bps.


    • Feb 21: CenterPoint Energy Resources priced a $600m 5y and $600m 10y benchmark via MIZ, Scotia, TD, TSI and USB.  A3/BBB+/A-.   Priced at +115bps and +145bps.


    • Feb 21: Mitsubishi HC Finance America LLC priced a $500m 10y benchmark via MS, Citi, JPM and BofA.  A3/A-.  Priced at +170bps.


    • Feb 21: Mizuho priced a 3-part $1bn 6.25NC5.25, $700m 8.25NC7.25 and $900m 11.25NC10.25 benchmark via MIZ and BofA. Priced at +150bps, +165bps, +180bps.