By John Balassi
April 26 (IFR) – A Molson Coors acquisition financing deal
led five offerings on Thursday as the primary investment-grade
market gathers pace ahead of Friday’s first-quarter GDP release.
With $5.8bn in supply already this week, today’s sizable
issuance should now put the $10bn in volume projected by
syndicate desks within reach. Today’s deals are mostly Yankee
corporate bonds.
At midday, the credit markets were relatively flat following
mixed economic data that showed pending home sales hitting
two-year highs, while a disappointing weekly jobless claims
figure rose to its highest reading since January.
Risky assets are coming off a strong rally on Wednesday amid
several days of earnings-driven momentum and the Federal Reserve
giving investors reason to be bullish.
The CDX IG18 was trading 1/8bp wider at 97.75 and the CDX
HY18 was trading 1/8 a point higher at 95.875. Treasuries are
bid higher, with the 10-year yield trading 3 1/2bps lower at
1.95%.
Molson Coors Brewing Co (Baa2/BBB-/BBB) is making
the rounds with a $1.9bn no grow SEC registered three-part
offering of 3-year, 10-year and 30-year bonds.
The proceeds of the deal, led by DB and MS, will be used to
partial pay the $3.54bn StarBev LP acquisition that was
announced on April 3 2012. There is a special mandatory
redemption that states that if the acquisition does not close on
or prior to November 2 2012, the notes will be redeemed at 101.
The initial price guidance is high 100’s for the 10-year,
with a 30bps spread between the 5-yr & 10yr and 37.5bps spread
between the 10-yr & 30yr.
Brazilian petrochemical financing subsidiary Braskem Finance
Ltd (Baa3/BBB-/BBB-) is in the market with a USD
benchmark 144a/RegS 10-year senior unsecured offering. The deal
is guaranteed by its parent Braskem SA. The joint books on the
deal are BB Secs, BTG, HSBC and JPM. The use of proceeds is for
general corporate purposes and to repay existing debt. Initial
price guidance is the 5.625% area.
Banco do Nordeste do Brasil SA (Baa2/BBB/BBB) is
out with guidance of 4.625% area on a $300m 7-year bond deal via
BAML, HSBC and Itau. The senior unsecured bond is being sold
under a 144A/RegS format with no registration rights. It carries
a change of control put at 101 in the event the government
ceases to hold 50% of the bank’s voting stock.
Indonesia’s state energy firm PT Pertamina
(Baa3/BB+/BBB-) announced a $2.5bn 144A/RegS two-part offering
10-year and 30-year bonds via Barc, Citi and HSBC. Final
guidance has been set at 4.95-5% on the 10-year and 6.10-6.15%
on the 30-year.
Another high-grade deal in the market is the auction for an
additional $100m of Zions Bancorp 4.5% notes due
3/27/17 that is expected to close today at 3pm ET. During the
auction period, potential bidders will be able to place bids at
or above the minimum bid price of $98.75 of the principal amount
per note, and up to and including the maximum bid price of
$101.50.
The use of proceeds is for general corporate purposes, which
may include the partial redemption of the remaining Series D
preferred stock held by the US Treasury or the redemption of the
senior floating notes due June 21 2012.
(Reporting by John Balassi; Editing by Marc Carnegie)
