USD New Issues: Big final day to boost July total

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IG new issuance $6bn short of the expected $75bn forecast and today's slate should easily surpass that and more as several multi-tranches are due.

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  • Big final day to boost July total

  • New issues

  • Recent issues

     

    Big final day to boost July total  

    IG new issuance posted an underwhelming $14.65bn in the past week, below the $20-$25bn expected. Thursday saw the busiest session as $6.95bn priced after the FOMC, while Monday ($4.2bn) and Tuesday ($3.5bn) made up the rest of the volumes.

     

    Week over week, IG corporate spreads narrowed 7bps to 119bps, the lowest level for 2023 since February. High yield spreads narrowed 7bps to 382bps, also a new low for the year, according to the ICE BofA Masters indexes.

     

    IG new issuance is seeing a robust finish for the month as today is seeing several multi-tranche issuances announced (Mercedes Benz, BAT Finance) along with Yankee FIGS (Santander, Lloyds). Thus final day of July should see plenty of new supply to surpass the $75bn forecast for the month as it currently is just $6.3bn short. 

     

     

    New issues

     

    • Mercedes Benz is working on a $TBA 5-part (2y, 2y FRN, 3y, 5y and 10y). Leads  BNPP, Citi, JPM, Mizuho, MUFG, Santander and SMBC. Price talk +75bps, SOFR equivalent, +95bps, +120bps, +145bps.

       

    • B.A.T. International Finance is working on a $TBA 5-part (5.5y, 7y, 10y, 20y, 30y). Baa2/BBB+. Price talk +200bps, +250bps, +270bps, +310bps, +330bps areas.

       

    • Lloyds Bank plans a $TBA 2-part (4y NC3 fixed and 4y NC3 FRN). Leads Barclays, HSBC, JPM and Scotia. A3/BBB+/A. Price talk +175bps and SOFR equivalent.

       

    • Santander is working on a $TBA 2-part (5y senior pref and 10y sub). Leads  BofA, Citi, GS, HSBC, JPM, Jefferies, MS, RBC, Santander, TD and WFS. A2/A+/A on 5y and Baa2/BBB+/BBB on 10y. Price talk  +175bps and +325bps respectively.

       

    • State Street plans a $TBA 2-part (3y fixed and 3y FRN). Lead MS. A1/A/AA-. Price talk +95bps and SOFR equivalent.

       

    • Invitation Homes Operating plans a $TBA 2-part (7y and 10y). Leads Citi, JPM and MS. Baa3/BBB/BBB. Price talk +180bps and +195bps area.

       

    • Consumers Energy plans a $350m long 5y FMB. A1/A. Leads MUFG, RBCCM and WFC. Price talk +95bps area.

       

    • Norfolk Southern is working on a $TBA 2-paft (7y and long 30y). Leads BofA, MS and WFC. Baa1/BBB+. Price talk +125bps and +160bps area.

       

    • Xcel Energy plans a $TBA 10y. Leads Barclays, BofA, PNC and WFS. Baa1/BBB+/BBB+. Price talk +175bps area.

       

    • GS Caltex plans a $300m, 5y bond at around USTs +128bps via CA, HSBC, JPM and Mizuho.

     

    Recent issues

     

    • Jul 27: Ares Capital priced a $600m long 3y. Leads BofA, JPM ,SMBC and WFS.  Baa3/BBB-/BBB.   +265bps.

       

    • Jul 27: Penske Truck Leasing priced a $1.1bn 5y. Leads BofA, JPM, MUFG, USB and WFS.  Baa2/BBB/BBB+.  +187.5bps. 

       

    • Jul 27: L3Harris priced a $3.25bn 3-part ($1.25bn long 3y, $1.5bn 10y and $500m 30y). Leads BofA, JPM, USB, WFC, Scotia, TD, MIZ and SMBC.  Baa2/BBB/BB+.  +85bps, +140bps and +155bps.

       

    • Jul 27: Waste Management priced a $2bn 2-part ($750m long 5y and $1.25bn long 10y). Leads BofA, Barclays, DB, GS and Scotia.  Baa1/A-/BBB+. +75bps, +105bps.

       

    • Jul 25: American Express priced a $3.5bn 4-part ($1.2bn 4y NC3 fixed to FRN, $300m 4y NC3 FRN, $1.5bn 6y NC5 fixed-to-FRN and $500m 11NC10 fixed-to-FRN). Leads Barclays, BofA, DB, MIZ and WFC.  A2/BBB+/A.  +88bps, SOFR +97bps, +113bps, +175bps.

       

    • Jul 24: Fifth Third Bancorp priced a $1.25bn 6y NC5 fixed to FRN. Leads Citi, FITB, MS and RBC.Baa1/BBB+/A-. +220bps. 

       

    • Jul 24: Public Storage priced a $2.2bn 4-part ($400m 2y FRN, $500m long 5y, $700m 10y and $600m 30y). Leads BofA and JPM. A2/A.  SOFR +60bps, +100bps, +125bps and +143bps.

       

    • Jul 24: Ashtead Capital priced $750m 10y. Leads BofA, JPM and WFS. Baa3/BBB-/BBB. +210bps. 

       

    • Jul 24: KEPCO priced a $1bn 3y Sustainable bond. Leads BofA, Citi, JPM, Mizuho and UBS. +100bps.

     

     

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