USD New Issues: Jumbo Pfizer on deck; Issuers flood in

Dam floodgates 9 Nov 2020
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Pfizer's jumbo is headlining IG supply with more than a dozen other issuers in the market. Around $30bn is expected after $35.1bn priced last week.

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  • Jumbo Pfizer on deck; Issuers flood in

  • New issues

  • Recent issues

     

    Jumbo Pfizer on deck; Issuers flood in  

    $35.1bn priced in IG new issuance last week (ex-SSA) -matching the top end of expectations for the week. The week started off with a bang as $22.5bn priced last Monday, led by a $6bn 6-part from Merck and a $5.25bn 5-part by Apple.

     

    Week over week, IG corporate spreads were unchanged at 148bps while high yield spreads narrowed 1bp to 476bps, according to the ICE BofA Masters indexes.

     

    For the coming week, surveys expect around $30bn (ex-SSA) and today is seeing the M&A driven jumbo deal in the works for Pfizer announced along with more than a dozen other issuers flooding in.

     

     

    New issues

     

    • Pfizer has mandated BofA, Citi, Goldman and JPM to lead a multi-tranche USD-denominated bond issue in 2025, 2026, 2028, 2030, 2033, 2043, 2053 and 2063 maturities to help fund its $43bn purchase of Seagen.

       

    • Toyota Motor Credit is working on a $TBA 3-part (3y, 3y FRN, and 7y). Leads CACIB, JPM, MS, SocGen and TD. A1/A+/A+. Price talk +95bps, SOFR equivalent and +125bps area.

       

    • Westpac plans a 5y Covered Bond. Leads HSBC, Lloyds, RBC, TorDom and Westpac. Aa3/AA-/A+. Price talk swaps +97bps.

       

    • State Street is working on a $TBA 2-part (3y NC2 fixed and 11y NC10 fixed). Leads BofA, DB, GS and SAMRCO. A1/A/AA-. Price talk +140bps and +195bps area.

       

    • Tokyo Metropolitan Government has mandated Barclays, Goldman, Citi and MS to arrange investor chats from tomorrow ahead of a planned 3y to 5y USD bond issue.

       

    • Japan International Cooperation Agency (JICA) plans a USD 5y Sustainable Bond. Leads Barclays, Citi, Daiwa and MS. A+. Price talk swaps +80bps. Expected to price tomorrow.

       

    • Poland’s BGK plans a $1.5bn 10y USD-denominated government-guaranteed COVID-19 Response Bond. Leads BNPP, Citi, ING, JPM and Santander. A2/A-. Price talk +190bps.

       

    • Saudi Arabia is working on a $TBA 2-part (6y and 10y). Leads Citi, JPM and StanChart. A1/A+. Price talk +110bps and +135bps.   

       

    • Florida Power & Light is working on a $TBA 4-part (3y, 5y FMB, 7y and 10y). Leads BBVA, BMO, BofA, JPM, RBCCM, Santander and Scotia. Aa2/A+/AA-. Price talk +105bps, +120bps, +140bps and +155bps area. 

       

    • PacificCorp is working on a $TBA 31y Green FMB. Leads BMO, PNC, SMBC, TD and WFC. A1/A+. Price talk +190bps area.  

       

    • Puget Sound Energy plans a $400m (no grow) 30y Green FMB. Leads Barclays, JPM and Scotia. A2/A-/A. Price talk +180/185bps area. 

       

    • Eaton Corp is working on a $500m (no grow) 5y. Leads BNPP, GS, JPM. A3/A-. Price talk +120bps area.

       

    • AES Corp plans a $TBA 5y Green fixed. Leads Barclays and JPM. Baa3/BBB-/BBB-. Price talk +220bps area.   

       

    • National Fuel Gas plans a $300m 3y. Leads BofA, JPM, WFS. Baa3/BBB-/BBB. Price talk +205bps area.

       

    • Weyerhaeuser is working on a $TBA 3y. Leads GS, JPM, MUFG, MS and Scotia. Baa2/BBB. Price talk +140/145bps area.

       

    • LKQ plans $TBA 2-part (5y and 10y). Leads BofA and WFS. Baa3/BBB-/BBB-. Price talk +262.5bps and +312.5bps area.

       

    • Southern Co. plans a $TBA 2-part (5y and 10y). Leads BofA, Barclays, MUFG, RBCCM, USB, WFS. Baa2/BBB. Price talk +162.5bps and +195bps area.

       

    • CADES plans a USD benchmark 5y bond. Leads BNPP, Goldman, NatWest and SocGen. Aa2/AA. Price talk SOFR MS +47bps area. Expected to price tomorrow.

       

    • CoE Development Bank plans a $TBA 3y Social fixed.  Leads CACIB, MS, NatWest and Nomura. Aaa/AAA/AA+. Price talk SOFR MS +24bps. Expected to price tomorrow.

     

    Recent issues

     

    • May 12: Honeywell priced a $750m 5y and $1bn 10y benchmark via BofA, Citi, JPM, SBMC and WFS.  A2/A/A.  +85bps, +115bps.

       

    • May 12: Mamoura (MDGH) priced a $1.5bn 2-part ($1bn 10.5y and $500m 30y Formosa). Leads are BNPP (B&D 30y), Citi, FADB, JPM (B&D 10y), StanChart, Barclays, CA, ENBD, Mizuho, Natixis, SMBC and ADCB.  Aa2/AA.  +105bps, +135bps.

       

    • May 11: EIDP Inc. priced a $1.2bn ($600m 3y and $600m 10). Leads BofA, GS and SMBC.  A3/A/A. +95bps and +145bps.

       

    • May 11: Texas Instruments priced a $1.6bn 3-part ($200m tap of its 4.6% Feb 2028, $200m tap of its 4.9% Mar 2033 and new $1.2bn 40y). Leads JPM, MS and USB.  Aa3/A+.  +67bps, +102bps, +137bps.

       

    • May 11: BNG Bank priced a $1.5bn 5y social benchmark via CA-CIB, Citi, Daiwa and RBC.  Aaa/AAA/AAA.  MS +45bps.

       

    • May 10: Foundry JV Holdco LLC priced a $1.1bn 10y deal via BNPP, BMO, SMBC, TD and WFS.  A3/A-.  +260bps.

       

    • May 10: Willis North America priced a $750m 10y benchmark. Leads BofA, Barclays and PNC.  Baa3/BBB+. +195bps.

       

    • May 10: Edison International priced a $600m 5.5y benchmark via MUFG, MIZ and PNC.  Baa2/BBB-/BBB.  +1900bps.

       

    • May 10: Ryder priced a $650m 5y benchmark. Leads MUFG, MS, PNC, USB and WFC.  Baa2/BBB+/BBB+. +190bps.

       

    • May 9: Estee Lauder priced a $2bn 3-part ($700m 5y, $700m 10y and $600m 30y). Leads BOFA, CITI and JPM.  A1/A+.  +90bps, +115bps, +135bps.

       

    • May 9: BP Capital Markets America priced a $1.5bn long 10y benchmark via BBVA, CA-CIB, DB, JPM, MS and MUFG. +137.5bps.

       

    • May 9: Conoco priced a $1.1bn 30y benchmark. Leads JPM, SMBC, TD and WFS.  A2/A-/A.  +150bps.

       

    • May 9: Entergy Mississippi priced $300m 10y FMB deal via Citi, MUFG and WFS.  A2/A.   +148bps.

       

    • May 9: Export-Import Bank of China (A1/A+) priced a $1.5bn 3y. Leads BoC, Bank of Comms, Barclays, CITIC, CA (B&D), HSBC, ICBC and MUFG. +35bps.

       

    • May 9:  Bayfront Infrastructure (Aaa/AAA) priced a $500m 3y. Leads HSBC and StanChart. +55bps.

       

    • May 8: T-Mobile priced a $3.5bn 3-part ($900m 5y, $1.35bn reopening of its 5.05% Jul 2033 and $1.25bn 30y). Leads Barclays, Citi, GS and JPM. Baa2/BBB-/BBB+. +135bps, +173bps and +195bps.

       

    • May 8: Apple priced a $5.25bn 5-part ($1bn 3y NC1, $1.5bn 5y, $500m 7y, $1bn 10y and $1.25bn 30y). Leads Barclays, JPM and GS. Aaa/AA+. +70bps, +55bps, +70bps, +80bps and +108bps.

       

    • May 8: Merck & Co priced a $6bn 6-part ($500m 5y, $750m 7y, $1.5bn 10y , $750m 21y, $1.5bn 30y and $1bn 40y). Leads BNPP, Citi, JPM and MS. A1/A+. +57bps, +82bps, +100bps, +102bps, +120bps and +135bps.

       

    • May 8: Oncor Electric Delivery priced a $1bn 2-part ($600m 5y and $400m reopening of its 4.95% Sep 2052). Leads Citi, JPM, TD and USB. A2/A+. +85bps and +145bps.  

       

    • May 8: Bell Canada priced a $850m 10y. Leads BMO, Citi, TD and WFS. Baa1/BBB+. +160bps. It dropped plans for a 3y NC1. 

       

    • May 8: Caterpillar Financial priced a $1.25bn 3y fixed. Leads Barclays, JPM, SocGen. A2/A/A.  +65bps. It dropped plans for a 3y FRN. 

       

    • May 8: Eversource priced a $1.8bn 3-part ($450m 3y, $550m reopening of its 5.45% Mar 2028 and $800m 10y). Leads BNY Mellon, Barclays, Citi, GS, Key Bank, PNC and USB on 3y. Leads Barclays, Citi, GS, Mizuho, MS, RBCCM, TD on 5y reopening. Leads BofA, Barclays, Citi, GS, JPM, MUFG and WFS and 10y. Baa1/BBB+/BBB+. +105bps, +130bps and +162.5bps.

       

    • May 8: DTE Energy priced a $800m 5y. Leads Barclays, JPM, Mizuho, MS and WFC. Baa2/BBB/BBB. +140bps.

       

    • May 8: Baltimore Gas & Electric priced a $700m 30y. Leads MUFG, BNPP, CACIB, Scotia.  A3/A/A.  +158bps.

       

    • May 8: Schlumberger Investment priced a $1bn 2-part ($500m 5y and $500m 10y). Leads BofA, DB and MUFG. A2/A. +105bps and +135bps.  

       

    • May 8: Ohio Power priced a $400m 10y. Leads CACIB, MUFG, SMBC. Baa1/A-/A. +155bps. 

     

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