Debt Capital Markets Update
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Global USD Debt Capital Markets saw two notable transactions, a $500mm 3.5yr issuance by Sinochem Holdings Corp Ltd. (Baa1/BBB+/A) in the IG market and a $305mm 5yr issuance by EnQuest Plc (B3/B+/-) in the HY markets.
Sinochem transaction saw books of $1.2bn and tightened from IPTs of T+125a to price at T+80bps
EnQuest transaction was upsized from $300mm and priced with a coupon of 11.63%. IPTs on the trade were 12.25%area.
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USD High Yield Markets were active on October 11 with three notable issuers coming to market.
- XPO Logistics printed a $355mm 5 year trade with a coupon of 7.5% at a price of 98.962
- Yancheng Oriental Investments & Development Group priced $164mm 3 year issuance with a coupon of 7.00% at 99.995
- LATAM Airlines Group brought dual tranche $450mm 5yr and $700mm 7yr Senior Secured transaction at a coupon 13.38% at the price of 94.423 and 93.103 for the 5yr and 7yr tranches, respectively.
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No notable transactions priced in the Debt Capital Markets on October 7th
October 6th saw deal flow in the USD IG markets from General Motors (Baa3/BBB/BBB-) and CNH Industrials (Baa2/BBB/BBB+) in the three year part of the curve.
General Motors priced $1.25bn of debt at T+185bps with a coupon of 6.05% and new issue concession of 15bps
CNH issued 400mm at T+145bps pricing with a coupon of 5.45% ad new issue concession of 5bps
IPTs on the GM and CNH transactions were T+195bps and T+165bps, respectively
Both transactions saw healthy demand with books of $2bn for the GM transaction and $1bn for the CNH paper.
TD Bank (Baa1/BBB/BBB+) was also in the market with a $1.75bn junior sub debt note with a 60 year maturity. The transaction priced at par with a coupon of 8.13% at a spread of T+407.5bps. The transaction saw books of $2.8bn.
October 5th saw the USD IG capital markets price the following two major transactions:
Two part USD1.25bn transactions by Cargill Inc and a dual tranche USD1.0bn deal by Deere & Co.
The Cargill transaction comprised of a USD750mm 3yr tranche priced at T+75bps and a USD500mm 10yr priced at T+140bps. The 3 year tranche priced 25bps inside the IPTs of T+100bps area while the 10 year tranche saw healthy demand, pricing 20bps inside of IPTs of T+160bps area.
The Deere & Co dual trancher consisted of a USD600mm 2 year and a USD400mm 7 year. Pricing on the transaction of T+43bps and T+100bps was well inside of IPT thoughts of T+65bps area and T+125bps area with strong demand for both the 2 year (book size: 1.4bn) and 7 year (book size: 1.0bn) tranches.
October 4th saw DNB ASA price a USD900mm 4 year transaction to redeem its existing $5.896% 4yr 10/2026 notes.
The 144A / Reg S transaction priced at a spread of T+180bps, 15bps inside of T+195bps area IPTs.
No notable transactions priced in the Debt Capital Markets on October 3rd
No notable transactions priced in the Debt Capital Markets on October 2nd
No notable transactions priced in the Debt Capital Markets on October 1st