USD New Issues: Higher gear kicks in

Gears
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$46.34bn priced in IG new issuance (ex-SSA) last week, above expectations. The stronger pace is expected to continue with around $35bn anticipated.

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  • Higher gear kicks in

  • New issues

  • Recent issues

     

    Higher gear kicks in  

    IG new issuance saw $46.34bn price in the past week (ex-SSA), coming over the $40bn that had been expected. February ended with $150.9bn, well over the $100bn that surveys forecasted. For March, expectations are for around $130 to $150bn, sources say.  

     

    Week over week, IG corporate spreads narrowed 3bps to 125bps while high yield spreads narrowed 23bps to 405bps, according to the ICE BofA Masters indexes.

     

    For the coming week, around $35bn is anticipated and already more than a dozen issuers on deck for today ahead of Powell’s semiannual testimony to Congress tomorrow and Wednesday.

     

    New issues

     

    • Lloyds Bank plans a USD-denominated, benchmark-sized perp NC7 AT1 sub. Leads BofA, Lloyds, MS (B&D), RBC and TorDom.  Baa3/BB-/BBB-. Price talk 8.25%-8.375%.

       

    • Santander Holdings USA is working on a $TBA 6y NC5 fixed to FRN. Leads Barclays, DB, RBC and Santander. Baa3/BBB+/BBB+. Price talk +250bps area.  

       

    • Commonwealth Bank of Australia plans a fixed rate 3y USD at around USTs +95bps and a 3y FRN at SOFR equivalent. Via BofA, CBA, Citi, Goldman and JPM. Pricing expected today.

       

    • San Diego Gas & Electric plans a $TBA 30y FMB fixed. Leads WFS, BofA, Barclays, BMO and Mizuho. A1/A/A. Price talk +180bps area.   

       

    • Mastercard is working on a $TBA 2-part (5y and 10y). Leads BofA, JPM. Lloyds, PNC and WFS. Aa3/A+. Price talk  +85bps and +110bps area.

       

    • The African Development Bank has mandated Barclays, Credit Agricole, Deutsche, JPM and TorDom to lead a USD 5y Global to be launched and priced ‘in the near future.’ Price talk is SOFR +35bps.

       

    • Avery Dennison plans a $350m 10y. Baa2/BBB. Price talk +205bps area.

       

    • Advanced Auto Parts is working on a $TBA 2-part (3y and 5y). Leads JPM, BofA and TSI. Baa2/BBB-. Price talk +160bps and +190bps area.

       

    • Ameriprise plans a $TBA 10y. Leads GS, JPM and WFS. A3/A-/A-. Price talk +140/145bps area.

       

    • NIB plans a USD 5y Global. Leads BoA, BMO, Nomura and RBC. Aaa/AAA. Price talk around swaps +33bps. Expected to price tomorrow.

       

    • Duke Energy Progress is working on a $TBA 2-part (10y and 30y). Leads Barclays, MUFG, PNC, RBCCM and USB. Price talk +155bps and +180bps area.

       

    • Warnermedia Holdings plans a $TBA 3y NC1 fixed. Leads JPM, Mizuho, WFS. Baa3/BBB-/BBB-. Price talk +212.5bps area.    

       

    • Avnet is working on a $TBA 5y. Leads BofA, JPM, Scotia and TSI. Price talk +220bps area.

       

    • Marsh & McLennan plans a $TBA 30y. Leads Barclays, HSBC and MS. Baa1/A-/A-. Price talk +180/185bps area.  

       

    • Enbridge plans a $TBA 2-part (3y NC1 fixed and 10y SLB). Leads JPM, MS, Mizuho, SMBC and TSI. Baa1/BBB+/BBB+. Price talk +155bps and +200bp area.  

       

    • Rio Tinto is working on a $TBA 2-part (10y and 30y). Leads DB, JPM, Santander and SMBC. A2/A. Price talk +125bps and +150/155bps area.   

       

    • Shinhan Bank has mandated BNPP, BofA, Credit Agricole, JPM, SocGen and Standard Chartered to lead a USD-denominated bond following investor roadshows commencing Mar 13.

       

    • Air Lease Corp launched a $600m 144A Sukuk at USTs +185bps via Bank ABC and Dubai Islamic Bank. BBB/BBB.

     

    Recent issues

     

    • Mar 2: HSBC priced a $7bn 3-part TLAC ($2bn 6y NC5, $2.25bn 11y NC10 and $2.75bn 21y NC20). Self-led. A3/A-/ A+. +185bps, +220bps and +210bps.

       

    • Mar 2: Norinchukin Bank priced a $500m 5y Green bond. Leads Citi and JPM (B&D). A1/A-. +110bps.

       

    • Mar 2: Black Hills priced a $350m 5y. Leads BofA and JPM.  Baa2/BBB+/BBB+. +170bps.

       

    • Mar 2: NRG priced a $740m 10y. Leads Citi, GS, MS, MUFG and BofA.  Baa3/BBB-/BBB-.  +310bps.

       

    • Mar 2: Northwest Natural Gas priced a $100m 10y FMB. Leads RBC and USB.  A2/AA-.  +170bps.

       

    • Mar 2: Verisk priced a $500m 10y. Leads BofA and HSBC. Baa2/BBB/BBB+. +180bps. 

       

    • Mar 2: EBRD priced a $2bn 5y Global. Leads Daiwa, GS, JPM and TorDom. Mid swaps +31bps.

       

    • Mar 2: L-Bank priced a $2bn 3y. Leads BMO, DB, JPM (B&D) and RBC. Mid swaps +20.8bps.

       

    • Mar 1: Sumi Trust priced a 3-part $1bn 3y fixed, $500m 3y FRN and $500m 5y green. Leads GS, JPM, Citi and Daiwa on the 3y and BNPP, BofA, CACIB, GS and Daiwa on 5y. A1/A. Priced at +110bps, SOFR + 112bps, +128bps.  

       

    • Mar 1: Stanley Black & Decker priced a 2-part $350m 3y NC1 fixed and $400m 5y. Leads BofA, Citi, JPM and WFC. Baa2/A/BBB+. Priced at +165bps and 175bps.

       

    • Mar 1: Morocco priced a 2-part $1.25bn 5y and $1.25bn 10.5y. Leads BNPP, DB, Citi, JPM. Ba1/BB+. Priced at +195bps and +260bps.

       

    • Mar 1: Five Corners priced a 2-part pre-capitalized trust securities ($1.5bn 10y and $800m 30y). Leads BofA, Citi, CS, DB and Mizuho. A3/A. Priced at +180bps and +205bps.

       

    • Mar 1: KeySpan Gas East priced a $500m 10y. Leads GS, JPM, MS and RBCCM. Baa1/BBB+/A-. Priced at +200bps.

       

    • Mar 1: Simon Property priced a 2-part $650m 10y and $650m 30y. Leads Citi, JPM, Mizuho and Scotia. A3/A-. Priced at +165bps and +195bps.

       

    • Mar 1: Edison International priced a $500m 30y NC5. Leads BofA, CS, RBCCM and TSI. Baa3/BB+/BB. Priced at 8.125%.

       

    • Mar 1: Eversource priced a $750m 5y. Leads BofA, JPM, Mizuho, MS, USB and WFS. Baa1/BBB+/BBB+. Priced at +123bps.

       

       

    • Feb 28: SMFG priced a $1.3bn self-led 4-part ($300m 3y tap of its 5.464% Jan 2026, $400m 5y tap of its 5.52% Jan 2028, $350m 7y tap of its 5.71% Jan 2030 and $250m 10y tap  of its 5.766% Jan 2033).  A1/A-.  +105bps. +140bps, +155bps and +170bps.

       

    • Feb 28: Astrazeneca Finance priced a $2.25bn 3-part ($1.1bn 5y, $650m 7y and $500m 10y). Leads BofA, HSBC, MIZ and Santander.  A3/A.  +75bps, +90bps and +100bps.

       

    • Feb 28: Cigna Group priced a $1.5bn 2-part ($700k 3y NC1 and $800k 10y). Leads BofA, MS and USB.  Baa1/A-/BBB+.  +117bps, +150bps.

       

    • Feb 28: America Tower priced a $1.5bn 2-part ($700m 5y and $800m 10y). Leads Barclays, MIZ, RBC, Scotia and TD. +140bps, +180bps.

       

    • Feb 28: Florida Power & Light priced a $2.5bn 3-part ($1bn 5y, $750m 10y and $750m 30y FMB benchmarks). Leads KeyBank, BNPP, Citi, CA-CIB, GS and MIZ.  Aa2/A+/AA-.  +90bps, +120bps and +140bps.

       

    • Feb 28: Citigroup priced a$1.25bn self-led PerpNC5.  Ba1/BB+/BBB-.  7.375%.

       

    • Feb 28: Equitable Financial priced a $300m 5y FA-backed deal via DB, JPM and PNC.  A1/A+.  +130bps.

       

    • Feb 28: HSBC priced a $2bn self-led PerpNC5.5 Sub AT1 note.  A3/A-/A+.  Priced at 8%.

       

    • Feb 28: Bank of England priced a $2bn 3y. Leads BofA, DB, RBCCM and TD. Aa3/AA/AA-.  +13bps.

       

    • Feb 27: Southern California Edison priced a $1.2bn 2-part FMB ($750m 5y and $450m 30y). Leads BNPP, JPM, SMBC and WFS.  +115bps and +180bps.

       

    • Feb 27: PPL Electric Utilities priced a $1.35bn 2-part ($600m 10y and $750m 30y). Leads Barclays, PNC, Scotia and USB. A1/A+. +120bps and +145bps.   

       

    • Feb 27: NatWest priced a $2bn 2-part ($1bn 4y NC3 fixed to fixed and a $1bn 11y NC10 fixed to fixed). Leads BofA, GS, JPM, NatWest, UBS and WFS. A3/BBB/A. +135bps and +210bps.

       

    • Feb 27: John Deere priced a $2bn 4-part ($500m 2y, $550m 3y, $300m 3y FRN and $650m 5y). Leads Barclays, CACIB, Citi and MUFG. A2/A/A+. +40bps, +55bps, SOFR +57bps and +75bps.

       

    • Feb 27: DTE Electric priced a $1.2bn 2-part ($600m 10y and $600m 30y). Leads BofA, Scotia, TD Sec and TSI. Aa3/A/A+. +130bps and +150bps.

       

    • Feb 27: Lloyds priced a $1.25bn 6y NC5 fixed to fixed. Leads Lloyds, Mizuho, MS. TD and WFC. A3/BBB+/A. +170bps.

       

    • Feb 27: Colgate Palmolive priced a $1.5bn 3-part ($500m 3y, $500m 5y and $500m 10y). Leads BNPP, GS, MS, WFC. Aa3/AA-. +33bps, +45bps, +70bps.

       

    • Feb 27: Arrow Electronics priced a $500m 3y NC1. Leads ING, JPM, Mizuho and PNC. Baa3/BBB-/BBB-. +163bps.

       

    • Feb 27: FiServ priced a $1.8bn 2-part ($900m 5y and $900m 10y). Leads BofA, JPM, PNC and USB. +130bps and +170bps.

       

    • Feb 27: Humana priced a $1.25bn 2-part ($500m 3y NC1 and $750m 30y). Leads Barclays, Citi, MS, USB and WFC. Baa3/BBB+/BBB. +120bps and +180bps. 

       

    • Feb 27: American Electric Power priced a $850m 10y. Leads Barclays, Key, MUFG, TD and USB. Baa2/BBB+/BBB. +175bps.

       

    • Feb 27: Air Products priced a $600m 10y. Leads Citi, JPM, Mizuho and SMBC. A2/A. +90bps.

       

    • Feb 27: Union Electric priced a $500m 30y FMB. Leads Key, BofA, RBCCM, TD and USB. A2/A. +155bps.

       

    • Feb 27: Vulcan Materials priced a $550m 3y NC1 fixed. Leads BofA and TSI. Baa2/BBB+/BBB.  +130bps.

       

    • Feb 27: Arthur J. Gallagher priced a $950m 2-part ($350m 10y and $600m 30y). Leads BofA and Citi. +160bps and +190bps. 

       

    • Feb 27: Williams Co. priced a $1.5bn 2-part ($750m 3y and $750m 10y). Leads DB, JPM, Mizuho and MS. Baa2/BBB/BBB. +93bps and +175bps.

     

     

     

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