USD New Issues: Post-Pfizer boost, slowdown expected ahead

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The $31bn Pfizer jumbo boosted volumes last week to near $58bn. With the holiday weekend ahead, surveys expect a front-loaded slower pace.

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  • Post-Pfizer boost, slowdown expected ahead

  • New issues

  • Recent issues

     

    Post-Pfizer boost, slowdown expected ahead    

    Pfizer’s $31bn 8-part jumbo deal last Tuesday headlined business last week – the 4th largest ever. In total $57.85bn priced (ex-SSA), well over the $30bn expected, not surprisingly. The Pfizer deal saw a book size of around $85bn or 2.74x and tightened 20bps from initial price talk across the 8 tranches, sources say. Moreover, the tranches have performed well in the secondary markets, sources say.

     

    Meanwhile corporate spreads narrowed IG spreads down 3bps week over week to 145bps, while high yield spreads narrowed 14bps to 462bps, according to the ICE BofA Masters indexes.

     

    With Memorial Day weekend this coming weekend, surveys expect a front loaded $15-$20bn this week. Month to date currently stands a $123bn compared to the expected $135bn for the month that looks achievable should conditions remain sanguine.

     

     

    New issues

     

    • Citigroup plans a $TBA 11y NC10. Self-led. Baa2/BBB/BBB+. Price talk +280bps area.    

       

    • National Securities Clearing plans a $TBA 2-part (2y and 5y). Leads BofA, Citi, Scotia and TD. Aaa/AA+. Price talk +125bps and +165bps areas.

       

    • Penske Truck Leasing is working on a $TBA 2-part (3y and 7y). Leads BofA, Citizens, FITB, JPM and WFC. Baa2/BBB/BBB+. Price talk +215bps and +275bps areas.  

       

    • Travelers plans a $TBA 30y. Leads Citi, GS, MS, TD and WFC. A2/A/A. Price talk +175/180bps area.

       

    • BGC Partners is working on a $350m 5y. Leads BofA, CF, GS, PNC, REGFIN, WFC. BBB-/BBB-. Price talk 8%.

       

    • AEP Texas plans a $450m (no grow) 10y. Leads BofA, JPM, Mizuho and Scotia. Baa2/A-/BBB+. Price talk +200bps area.

       

    • American Tower is working on a $TBA 2-part (5y and 10y). Leads BBVA, Citi, BofA, JPM and MS. Baa3/BBB-/BBB+. Price talk +175bps and +210bps areas.     

       

    • Progressive plans a $500m (no grow) 10y. Leads GS and JPM. A2/A/A. Price talk +145bps area.

       

    • Pricoa Global Funding is working on a $TBA 5y FA backed. Leads GS, JPM, MS and SMBC. Aa3/AA-/AA-. Price talk +155bps area.

       

    • Tokyo (A+) plans a $500m 3y at around swaps +90bps  through Barclays, Citi, Goldman and MS (B&D). Expected to price Tuesday.

       

    • NedWatershcaps Bank plans a $1bn 5y Social. Leads Barclays, BNPP, CIBC and Citi. Aaa/AAA. Price talk in the region of swaps +47bps. Expected to price tomorrow.

       

    • Korea’s Kubota Credit Corp (A) is preparing a USD 3y bond through BofA, Barclays, MS and Nomura after meeting investors from May 22. 

     

    Recent issues

     

    • May 18: IQVIA priced a $750m 5y fixed. Lead GS. Baa3/BBB-. +200bps. It also priced a high yield $400m 7y NC3 at 8%.

       

    • May 17: Korea Credit Guarantee Fund (Aa2/AA) priced a $300m 3y Social. Lead BNPP.  Aa2/AA. +120bps.

       

    • May 17: Southern California Edison priced a $1.1bn 2-part ($400m 3y and $700m 30y). Leads BMO, Citi, JPM and WFC.  A2/A-/A-.  +112.5bps and +200bps.

       

    • May 17: EDF priced a $3bn 3-part ($1bn 5y, $1bn 10y and $1bn 30y). Leads BofA, CA-CIB, BNPP, DB, JPM, MIZ, MS, MUFG, SocGen, Santander, StanChart and WFS.  Baa1/BBB/BBB+. +215bps, +270bps, +310bps.

       

    • May 17: Schwab priced a $2.5bn 2-part ($1.2bn 6y NC5 and $1.3bn 11y NC10). Leads BofA, Citi, CS, GS, JPM and WFC.  A2/A-/A.  +205bps, +227bps.

       

    • May 17: Southern California Gas priced a $1bn 2-part ($500m 10y and $500m 30y). Leads CIBC, JPM, Santander, Scotia and TD.  Aa3/A+/AA-.  +165bps, +190bps.

       

    • May 17: CNA Financial priced a $400m 10y. Leads BofA, JPM and WFS.  Baa2/A-/BBB+. +200bps.

       

    • May 17: BlackRock priced a $1.25bn 10y. Leads BofA, HSBC and JPM.  Aa3/AA-. +130bps.

       

    • May 17: National Rural Utilities priced a $300m 30y NC5 sub-deal via JPM, MIZ, RBC and TSI.  A3/BBB/BBB+.  c7.125%.

       

    • May 17: BNY Mellon priced a $500m 3y NC2. Leads LOOPCM, SAMRCO, ACADSE, SIEWIL and RSEEL.  Aa2/AA-/AA.  +100bps.

       

    • May 17: LYB International Finance III priced a $500m 10y green deal via ING and MS.  Baa2/BBB/BBB.   +205bps.

       

    • May 17: Amcor Finance USA Inc. priced a $500m 10y. Leads BofA, Citi, JPM and WFC.  Baa2/BBB. +217bps.

       

    • May 17: ITC priced a $800m 2-part ($300m 5y and $500m 10y). Leads Barclays, GS, MIZ and MS.  Baa2/BBB+.  +135bps and +185bps.

       

    • May 17: Kommunekredit priced a $1bn 5y. Leads BMO, Daiwa, DB, RBC and SEB. Aaa/AAA. SOFR MS +44bps.

       

    • May 17:  Aldar Investment (Baa1) priced a $500m 10y Green Sukuk. Leads ADCB, ADIB, DIB, ENBD, FADB, HSBC (B&D), Mashreq and StanChart. +150bps.

       

    • May 17:  OTP Bank (Baa3/BBB-) priced a $500m 4y NC3 bond. Leads BNP, JPM, MS (B&D), OTP and SocGen. 7.5%. 

       

    • May 17: NRW Bank priced a $1bn 3y. Leads BofA, Citi, Nomura and RBC. Aa1/AA/AAA. SOFR MS +32bps.

       

    • May 16: Pfizer priced a $31bn 8-part ($3bn 2y, $3bn 3y, $4bn 5y, $3bn 7y, $5bn 10y, $3bn 20y, $6bn 30y, $4bn 40y). Leads BofA, Citi, GS and JPM. A1/A+. +60bps, +75bps, +95bps, +115bps, +125bps, +130bps, +145bps, +160bps.

       

    • May 16: Ovintiv Bank priced a $2.3bn 4-part ($600m 2y, $700m 5y, $600m 10y and $400m 30y). Leads GS, MS, JPM, RBC and TD.  Baa3/BBB-/BBB-.  +160bps, +215bps, +275bps, +325bps.

       

    • May 16: CADES priced a $3bn 5y Social. Leads BNPP, Goldman, NatWest and SocGen. Aa2/AA. Books above $5bn. Mid swaps +45bps.

       

    • May 16: Japan International Cooperation Agency (JICA) priced a $1.25bn 5y Sustainable. Leads Barclays, Citi, Daiwa and MS. A+. Mid swaps +76bps.

       

    • May 16: CoE Development Bank priced a $1bn 3y Social Global.  Leads are CA, MS, NatWest and Nomura. Swaps +24bps.

       

    • May 16: Singapore Tech Engineering (Aaa/AA+) priced a $500m 3y. Leads JPM (B&D), DBS and StanChart. +60bps.

       

    • May 15: Florida Power & Light priced a $2.5bn 4-part ($500m 3y, $750m 5y FMB, $500m 7y and $750m 10y). Leads BBVA, BMO, BofA, JPM, RBCCM, Santander and Scotia. Aa2/A+/AA-. +80bps, +95bps, +115bps, +130bps.

       

    • May 15: PacificCorp priced a $1.2bn 31y Green FMB. Leads BMO, PNC, SMBC, TD and WFC. A1/A+.  +165bps. 

       

    • May 15: Allstate priced a $600m $25 par preferred. Leads MS, BofA, JPM, Loop and WFS. Baa2/BBB. 7.375%.

       

    • May 15: Southern Co. priced a $1.5bn 2-part ($750m 5y and $750m 10y). Leads BofA, Barclays, MUFG, RBCCM, USB, WFS. Baa2/BBB. +143bps and +173bps.

       

    • May 15: Toyota Motor Credit priced a $2bn 3-part ($1bn 3y, $300m 3y FRN, and $700m 7y). Leads CACIB, JPM, MS, SocGen and TD. A1/A+/A+. +80bps, SOFR +89bps and +110bps.

       

    • May 15: Westpac priced a $1.75bn 5y Covered Bond. Leads HSBC, Lloyds, RBC, TorDom and Westpac. Aa3/AA-/A+. Mid swaps +92bps.

       

    • May 15: State Street priced a $2bn 2-part ($1bn 3y NC2 fixed and $1bn 11y NC10 fixed). Leads BofA, DB, GS and SAMRCO. A1/A/AA-.+110bps and +165bps.

       

    • May 15: FMC Corp priced a $1.5bn 3-part ($500m 3y, $500m 10y and $500m 30y). Leads BofA, Citi, SMBC and TD. Baa2/BBB-.  +150bps, +215bps and +255bps.

       

    • May 15: AES Corp priced a $900m 5y Green fixed. Leads Barclays and JPM. Baa3/BBB-/BBB-. +200bps.  

       

    • May 15: Weyerhaeuser priced a $750m 3y. Leads GS, JPM, MUFG, MS and Scotia. Baa2/BBB.  +120bps.

       

    • May 15: LKQ priced a $1.4bn 2-part ($800m 5y and $600m 10y). Leads BofA and WFS. Baa3/BBB-/BBB-. Price talk +235bps and 285bps.

       

    • May 15: Puget Sound Energy priced a $400m 30y Green FMB. Leads Barclays, JPM and Scotia. A2/A-/A. +160bps. 

       

    • May 15: Eaton Corp priced a $500m 5y. Leads BNPP, GS, JPM. A3/A-. +90bps.

       

    • May 15: National Fuel Gas priced a $300m 3y. Leads BofA, JPM, WFS. Baa3/BBB-/BBB. +190bps.

       

    • May 15:  BGK priced a $1.5bn 10y USD-denominated government-guaranteed COVID-19 Response Bond. Leads BNPP, Citi, ING, JPM and Santander. A2/A-. +190bps.

     

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