Credit Pipeline

February 21st, 2017 6:33 am | by John Jansen |

Via Bloomberg:

IG CREDIT PIPELINE: 2 to Price, Adds/Updates PH, TXN, MOS, MCY
2017-02-21 10:53:05.763 GMT

By Robert Elson
(Bloomberg) — 2 Yankee deals came forward overnight and
are set to price today. Domestic names are expected to be added
to the mix as 86% of dealers, in a Bloomberg News survey, look
for at least $15b-$20b of IG issuance this week. 44% think it
will be more than $20b.

Recent updates:

* Parker-Hannifin (PH) Baa1/A, plans to issue up to $2.5b sr
notes to fund Clarcor acquisition; mandates C/MS for
investor meetings and calls Feb. 13-16; 144a/Reg-S USD
and/or EUR expected to follow
* PH announced a € benchmark deal today; the announcement
said, in part, “net proceeds from this offering,
together with;(i) the net proceeds from the US Dollar
notes”
* PH was cut to Baa1 by Moody’s, citing the co.’s “modest
but noteworthy increase in financial risk tolerance”
* Texas Instruments (TXN) A1/A+, has history of March, April
issuance
* Mercury General (MCY), to hold investor calls Feb. 22-23,
via BAML/WFS
* Mosaic (MOS) Baa2/BBB-, filed automatic mixed shelf; has not
issued since 2013
* $2.5b deal for Vale fertilizer ops; to fund purchase via
$1.25b cash and debt issuance
* PepsiCo (PEP) A1/A, has $4.4b maturing this year including
$750m next week; has issued in February in 2016, 2014, 2013,
2012.
* Kuwait (KUWIB) to hold roadshows March 5-15, via
C/HSBC/others; a debut deal of as much as $10b may price in
late March/early April
* The State of Kuwait is rated Aa2/AA
* Allergan (AGN) Baa3/BBB, exits blackout; last issued in 2015
* Has $1b maturing March 1
* General Motors Company Files Shelf; Parent Last Issued Feb.
2016
* Medtronic (MDT) A3/A, Files Debt Shelf, Has February
Maturities
* CNA Financial (CNAFNL) Baa2/BBB, Exits Blackout, Has History
of Feb. 10Y Issuance
* Exxon Mobil (XOM) Aaa/AA+, has a history of Q1 issuance
* Feb. 29, 2016: $12b in 8-tranches
* March 3, 2015: $8b in 7-tranches
* March 17, 2014: $5.5b in 5 parts
* Has $2.25b maturing March 15

* M&A deals expected in 2017, updated
* List grows with the addition of RBLN, BATSLN, FOXA
* MARS, the privately help candy behemoth of M&M fame has
a $5b loan outstanding for its VCA purchase; a private
place or debut bond sale to support the acquisition is
possible

SHELF FILINGS

* Panama; debt shelf amended to offer up to $3b debt, warrants
(Jan. 9)
* PG&E Corp (PCG) Baa1/BBB; $350m mixed shelf; Feb. 2014 was
last issuance at this level (Jan. 4)

OTHER

* United Technologies (UTX) A3/A-; plans to tap debt markets
in early 2017 to complete share buyback (Dec. 14)
* 3M (MMM) A1/AA-; plans up to $2.8b debt in 2017, suggesting
another yr of incrementally higher leverage, BI says (Dec.
14)
* European Stability Mechanism (ESM) Aa1/–; mandates for
advisement on inaugural USD issuance (Oct. 21)
* Conagra Brands (CAG) Baa2/BBB; could add up to $2.5b debt
for M&A, BI said
* CAG was raised to BBB by S&P in Nov. on the expectation
co. will maintain debt leverage ~3x and below

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