Credit Pipeline

October 31st, 2016 5:50 am | by John Jansen |

Via Bloomberg:

IG CREDIT PIPELINE: Dealers Expect at Least $20b of IG Deals
2016-10-31 09:15:33.43 GMT

By Robert Elson
(Bloomberg) — 80% of dealers, in a Bloomberg survey, look
for at least $20b of new IG issuance this week. 39% think it
will be over $25b; 18% over $30b.

LATEST UPDATES:

* Dow Chemical (DOW) Baa2/BBB, filed debt shelf; last issued
in Sept. 2014
* Qualcomm (QCOM) A1/A+; ~$47b NXP Semiconductor (NXPI)
Ba2/BBB-, acq
* Sees funding deal with cash, $11b new debt (Oct. 27)
* Rockwell Collins (COL) A3/A-, to buy B/E Aerospace (BEAV)
Ba2/BB+, for $8.3b in cash, stock, assumption of debt
* COL sees financing cash portion of deal with debt
financing; plans to pay down $1.5b of new debt by end of
its FY19
* Moody’s and S&P said COL’s rating may be cut to the mid-
BBB range following completion of the BEAV acquisition
* AT&T (T) Baa1/BBB+ to buy Time Warner (TWX) Baa2/BBB for
$85b in cash, stock deal; cash portion will be financed with
new debt, cash on hand
* $40b bridge loan in place
* T may be cut by Moody’s; any potential downgrade would
be limited to one notch
* European Stability Mechanism (ESM) Aa1/na/AAA, mandates
Barc/C/DB/JPM to advise on its USD issuance program
* First ESM USD transaction scheduled for 2H 2017, subject
to market conditions
* ConAgra (CAG) Baa2/BBB-, could borrow up to $2.5b for
acquisitions
* Province of Nova Scotia (NS Gov) Aa2/A+ , filed Friday a
$1.25b debt shelf; last issued in USD in 2010, has $500m
maturing January
* Korea Hydro & Nuclear Power (KOHNPW) Aa2/AA, mandates BNP/C
for investor meetings Oct. 18-20
* International Finance Corp (IFC) Aaa/AAA, to market 5Y
inaugural Forest Bond, via BNP/BAML/JPM; at least $75m may
price week of Oct. 24
* Hyundai Capital Services (HYUCAP) Baa1/A-, to hold investor
meetings from Oct.17, via C/HSBC/Nom
* Darden Restaurants (DRI) Baa3/BBB, filed debt shelf, last
seen in 2012
* Darden announced a new $500m share buyback program in
its 1Q earnings release
* Yes Bank (YESIN) Baa3/na, plans to raise $500m by year’s end
* Republic of Namibia (REPNAM) Baa3/BBB-, to hold non-deal
investor meetings Oct. 7-13, via Barc/JPM/StanBk
* Asciano (AIOAU) Baa3/BBB-, names ANZ/BNP/Miz for investor
meetings Oct. 10-28; it is a non-deal roadshow; last priced
a USD deal in 2011
* Western Union (WU) Baa2/BBB, filed debt shelf; last issued
Nov. 2013 following Oct. 2013 filing
* Nafin (NAFIN) A3/BBB+; mandates BofAML, HSBC for investor
meetings Sept. 27-28; USD-denominated deal may follow
* Analog Devices (ADI) A3/BBB; ~$13.1b Linear Technology acq
* $5b loan received after $11.6b bridge (Sept. 26)

MANDATES/MEETINGS

* HollyFrontier (HFC) Baa3/BBB-; investor calls Sept. 15-16
* Banco Inbursa (BINBUR) –/BBB+/BBB+; mtgs Sept. 7-12
* Woolworths (WOWAU) Baa2/BBB; investor call Sept. 7
* Sydney Airport (SYDAU) Baa2/BBB; investor calls Sept. 6-7
* Industrial Bank of Korea (INDKOR) Aa2/AA-; mtgs from Aug. 22
* Sumitomo Life (SUMILF) A3/BBB+; investor mtg July 19

M&A-RELATED

* Bayer (BAYNGR) A3/A-; ~$66b Monsanto acq
* Hybrid bond sales, approx. EU5b convertible bond
planned; part of $57b bridge (Sept. 14)
* Danaher (DHR) A2/A; ~$4b Cepheid acq
* Sees financing deal via cash, debt issuance (Sept. 6)
* Couche-Tard (ATDBCN) Baa2/BBB; ~$4.4b CST Brands acq
* Expects to sell USD bonds (Aug. 22)
* Pfizer (PFE) A1/AA; ~$14b Medivation acq;
* Expects to finance deal with existing cash (Aug. 22)
* Zimmer Biomet (ZBH) Baa3/BBB; ~$1b LDR acq
* Plans $750m issuance post-completion (June 7)
* Great Plains Energy (GXP) Baa2/BBB+; ~$12.1b Westar acq
* $8b committed debt secured for deal (May 31)
* Abbott (ABT) A2/A+; ~$5.7b St. Jude buy, ~$3.1b Alere buy
* $17.2b bridge loan commitment (April 28)
* Sherwin-Williams (SHW) A2/A; ~$9.3b Valspar buy
* $8.3b debt financing expected (March 20)

SHELF FILINGS

* Starbucks (SBUX) A2/A-; debt shelf; has $400m maturing Dec.
5 (Sept. 15)
* Brunswick (BC) Baa3/BBB-; automatic mixed shelf; last issued
in 2013 (Sept. 6)
* Enbridge (ENBCN) Baa2/BBB+; $7b mixed shelf (Aug. 22)

OTHER

* GE (GE) A1/AA-; Ratings cut by S&P on assumption of
increased debt for next couple of yrs on possible
acquisitions (Sept. 23)
* Israel Electric (ISRELE) Baa2/BBB-; said to hire C, JPM for
at least $500m bond sale in 4Q (Aug. 8)
* Visa (V) A1/A+; CFO says will issue $2b debt for buybacks by
yr end (July 21)

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