There are a few deals from Asia and Latin America already lined up to price Wednesday in the US high-grade bond market, which is currently at USD10.15bn in countable volume for the week.
But market tone is fairly neutral this morning following a weaker-than-expected German Ifo business climate number for April, suggesting that core European economies are still struggling.
Even as fundamentals remain weak, however, the markets have been bullish due to expectations that the poor data might prompt the ECB to ease monetary policy.
Credit and equities are also getting technical support from the additional liquidity provided by the Bank of Japan and the Federal Reserve. On the earnings front, Apple came out with second-quarter results that were hardly inspiring.
The computer giant managed a beat on revenue and sales, but it missed on margins while guidance was weak. Even so, Apple said it would expand buybacks by USD50bn and raise debt in order to fund its capital programs to shareholders.
The company gave no further details about its borrowings, but nevertheless got an immediate rating of AA+ from S&P and Aa1 from Moody's.
USD HIGH-GRADE CALENDAR
KazMunaiGaz, Baa3/BBB-, has set initial price guidance on an upcoming dual-tranche US dollar-denominated bond offering. The issuer has released yield guidance of 4.65% on the 10-year and 6.0% on the 30-year, but is yet to decide on the final size of the transaction.
Barclays and Bank of America Merrill Lynch are the bookrunners on the 144A/Reg S issue, while local Halyk Finance is acting as joint lead manager for the Kazakhstan state energy company.
Sinochem Global Capital, the Baa3/BBB- rated finance arm of China's largest chemical supplier Sinochem, is out with an initial price talk of 5.375% area for its perpetual non-call 5.5-year securities.
The subordinated perps will be issued in the 144A/Reg S format and guaranteed by Sinochem Hong Kong. The perps include a reset to the reoffer spread plus current Treasuries added to a 25bp step-up at year 10.5, and an additional 75bp from year 25.5.
Citigroup, UBS are the global coordinators and the same banks along with Goldman Sachs, Morgan Stanley and HSBC are joint bookrunners.
Korea Gas, A1/A+, has mandated Bank of America Merrill Lynch and Goldman Sachs to arrange investor meetings that kicked off in Chicago on Monday, New York on Tuesday, and Boston on Wednesday.
Chilean retailer Falabella, BBB/BBB, will start an international roadshow this week for a new US dollar 144A/Reg S senior offering via Citigroup, HSBC and Itau. The borrower was in London, Los Angeles and Lima on Monday, and will be in Boston and New York on Wednesday.
Peruvian utility Consorcio Transmantaro, Baa3/BBB-, will start visiting fixed-income investors on Wednesday and ending April 29. The electric transmission company has been looking to raise between USD350m-USD450m for its debut foreign bond.
Credit Suisse and Deutsche Bank are acting as joint bookrunners as well as joint leads, along with BBVA and BCP.
USD HIGH-YIELD CALENDAR
Names currently in the forward calendar include Erickson Air-Crane Inc, which released price guidance of 8.25% area for its USD400m second priority senior unsecured notes due 2020, expected to price on Thursday.
The notes, which will come via Deutsche Bank and Wells Fargo, are rated B1/B. CST Brand Inc is also expected to price this week with a USD550m 10-year non-call five senior unsecured offering via CS, JPM, WFS, Mitsubishi UFJ, RBC and RBS. KCA Deutag is scheduled to price its USD500m (downsized from USD860m) seven-year non-call three senior secured deal via JPM/BAML/HSBC/Lloyds/MS.
Finally, Buena Vista Gaming is poised to sell USD220m in eight-year non-call four senior secured notes via CS and BAML.
indiatimes.com
But market tone is fairly neutral this morning following a weaker-than-expected German Ifo business climate number for April, suggesting that core European economies are still struggling.
Even as fundamentals remain weak, however, the markets have been bullish due to expectations that the poor data might prompt the ECB to ease monetary policy.
Credit and equities are also getting technical support from the additional liquidity provided by the Bank of Japan and the Federal Reserve. On the earnings front, Apple came out with second-quarter results that were hardly inspiring.
The computer giant managed a beat on revenue and sales, but it missed on margins while guidance was weak. Even so, Apple said it would expand buybacks by USD50bn and raise debt in order to fund its capital programs to shareholders.
The company gave no further details about its borrowings, but nevertheless got an immediate rating of AA+ from S&P and Aa1 from Moody's.
USD HIGH-GRADE CALENDAR
KazMunaiGaz, Baa3/BBB-, has set initial price guidance on an upcoming dual-tranche US dollar-denominated bond offering. The issuer has released yield guidance of 4.65% on the 10-year and 6.0% on the 30-year, but is yet to decide on the final size of the transaction.
Barclays and Bank of America Merrill Lynch are the bookrunners on the 144A/Reg S issue, while local Halyk Finance is acting as joint lead manager for the Kazakhstan state energy company.
Sinochem Global Capital, the Baa3/BBB- rated finance arm of China's largest chemical supplier Sinochem, is out with an initial price talk of 5.375% area for its perpetual non-call 5.5-year securities.
The subordinated perps will be issued in the 144A/Reg S format and guaranteed by Sinochem Hong Kong. The perps include a reset to the reoffer spread plus current Treasuries added to a 25bp step-up at year 10.5, and an additional 75bp from year 25.5.
Citigroup, UBS are the global coordinators and the same banks along with Goldman Sachs, Morgan Stanley and HSBC are joint bookrunners.
Korea Gas, A1/A+, has mandated Bank of America Merrill Lynch and Goldman Sachs to arrange investor meetings that kicked off in Chicago on Monday, New York on Tuesday, and Boston on Wednesday.
Chilean retailer Falabella, BBB/BBB, will start an international roadshow this week for a new US dollar 144A/Reg S senior offering via Citigroup, HSBC and Itau. The borrower was in London, Los Angeles and Lima on Monday, and will be in Boston and New York on Wednesday.
Peruvian utility Consorcio Transmantaro, Baa3/BBB-, will start visiting fixed-income investors on Wednesday and ending April 29. The electric transmission company has been looking to raise between USD350m-USD450m for its debut foreign bond.
Credit Suisse and Deutsche Bank are acting as joint bookrunners as well as joint leads, along with BBVA and BCP.
USD HIGH-YIELD CALENDAR
Names currently in the forward calendar include Erickson Air-Crane Inc, which released price guidance of 8.25% area for its USD400m second priority senior unsecured notes due 2020, expected to price on Thursday.
The notes, which will come via Deutsche Bank and Wells Fargo, are rated B1/B. CST Brand Inc is also expected to price this week with a USD550m 10-year non-call five senior unsecured offering via CS, JPM, WFS, Mitsubishi UFJ, RBC and RBS. KCA Deutag is scheduled to price its USD500m (downsized from USD860m) seven-year non-call three senior secured deal via JPM/BAML/HSBC/Lloyds/MS.
Finally, Buena Vista Gaming is poised to sell USD220m in eight-year non-call four senior secured notes via CS and BAML.
indiatimes.com
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