IFR 02.29.2020

PACIFIC NATIONAL PLANS OFFSHORE

SALE

Australian rail freight operator PACIFIC

NATIONAL HOLDINGS has mandated ANZ, Bank of

China, Credit Suisse, Mizuho and Westpac to

arrange an Australian, London and Asian

roadshow from March 2 for a US dollar or

STERLING

DENOMINATEDû2EGû3ûlXED

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senior unsecured 10-year bond issue.

The company, rated BBB– by S&P and

Fitch, issued a A$450m (US$288m) 10-year

MTN issue following a similar Australian,

Asian and UK roadshow for an Australian

dollar, Reg S US dollar or sterling

benchmark.

0ACIlCû.ATIONALû(OLDINGSûHASûANû

UPCOMINGûMATURITYûTOûlNANCEûINûTHEûSHAPEû

of a US$600m 4.625% September 23 2020

Eurobond issue.

EUROS

PACCAR DRAWS ROBUST DEMAND FOR

ANNUAL FORAY

PACCAR FINANCIAL EUROPE drew robust demand

last week with its annual euro foray

although a febrile market backdrop meant

it was unable to match the order book it got

last year.

The truckmaker tapped the market with

ITSûlRSTûNEGATIVE

YIELDINGûTRANSACTIONûAû

€300m no-grow March 2023 bond that came

at –0.12% or 27bp over swaps. The launch

came ahead of the redemption of €500m of

three-year notes due May 19.

Aside from this 2020 bond, Paccar has one

OTHERûlXED

RATEûPAPERûINûTHEûCOMMONû

currency, a €300m March 2022, the bond it

printed in March 2019.

The 2020s were quoted on Tradeweb at

plus 19bp and the 2022s at plus 18bp. Leads

saw fair value for the new note in the low

20bp area.

For reference points, leads considered

John Deere and Toyota Motor, which have

September 2023 bonds quoted on Tradeweb

at mid-swaps plus 19bp and plus 29bp,

respectively.

At mid-swaps plus 45bp–50bp, IPTs were

announced markedly higher than those

levels, edging closer to Daimler’s February

2023 and November 2023 bonds at plus

49bp and plus 52bp.

'UIDANCEûWASûRElNEDûTOûPLUSûBPnBPû

on orders of €850m. Books closed at €800m

ANDûALLOWEDûTHEûISSUERûTOûlXûTHEûSPREADûATû

27bp

That suggested a new issue premium

within a 2bp–5bp range. By comparison,

Paccar did not give a concession for its

March 2022 paper last year.

The new notes were twice covered, paling

in comparison with the six times

subscription for its 2022 bond.

“The deal went very well considering

where we are with everybody scared of the

coronavirus, economic data not convincing,

and equity markets crumbling.” said a

banker on the trade. “It was not easy but we

found a great window within this volatility

to execute this trade.”

The take-up was slower owing to those

factors and the negative yield, he said.

Paccar is eligible for the ECB CSPP and the

ECB has previously bought the issuer’s May

ûmOATERûASûWELLûASûITSû-AYûûANDû

-ARCHûûlXED

RATEûNOTES

ING, MUFG and Rabobank were

bookrunners.

LUNDBECK PREPS BENCHMARK FIRST

FOR M&A REFI

H. LUNDBECKûWILLûRElNANCEûRECENTû-!û

activity with its debut bond issue, drawn to

the euro benchmark market by attractive

pricing and depth of demand.

The company was in the headlines last

week when it was announced that a

medication for the prevention of migraines,

at the centre of Lundbeck’s 2019 acquisition

of Alder Biopharma, had been approved by

the US regulator, the FDA. Lundbeck

acquired Alder for US$1.95bn in October.

The Danish pharmaceutical company,

rated BBB- (stable) by S&P, started a

ROADSHOWûONû&EBRUARYûûFORûAûlVE

YEARû

benchmark issued from the corporate’s

newly established EMTN programme.

4HEûNOTEûWILLûMARKû,UNDBECKSûlRSTû

capital markets transaction, according to a

banker involved in the trade.

“The pricing that the bond market offers

is quite compelling,” said the banker. “In

euros the pricing is especially good and it’s a

market close to home for them.”

The common currency also offers much

deeper demand than Nordic markets, said a

banker away from the transaction.

Lundbeck received its rating from S&P last

week. The agency based its decision on “the

company’s focus on the high-growth, high-

risk, central nervous system therapeutic

area, partially offset by its good geographic

and product diversity”.

Lundbeck’s focus on high-risk areas is also

partially offset by the company’s strong

credentials among physicians, said the

ratings agency.

BNP Paribas, Bank of America, Danske Bank

and Nordea are running the deal.

SWISS FRANCS

SYNGENTA PROVIDES YIELD IN SHAKY

MARKET

SYNGENTA FINANCE provided a bit of crossover

yield to Swiss investors on Tuesday, printing

a SFr340m (US$343m) two-part trade in a

shaky market.

Following a short roadshow, books

opened for a minimum SFr200m 2.75-year

at mid-swaps plus 85bp–95bp and a

minimum SFr100m 6.75-year at 120bbp–

130bp.

International Financing Review February 29 2020 31

BONDS CORPORATES

ALL INV-GRADE US CORPORATE BONDS

BOOKRUNNERS: 1/1/2020 TO DATE

Managing No of Total Share

bank or group issues US$(m) (%)

Excluding equity-related debt, ABS/MBS, all foreign issues, global issues

and non corporates.

Source: Refinitiv SDC code: F6a

1 JP Morgan 32 6,688.83 11.9

2 Citigroup 25 5,188.38 9.2

3 BofA 29 5,023.53 8.9

4 Barclays 17 4,576.00 8.1

5 Wells Fargo 25 4,391.33 7.8

6 Morgan Stanley 11 3,574.13 6.3

7 Goldman Sachs 12 3,324.39 5.9

8 Mizuho 13 2,494.16 4.4

9 MUFG 10 2,260.09 4.0

10 HSBC 8 2,016.06 3.6

Total 56 56,304.41

ALL INVESTMENT-GRADE BONDS IN EUROS

BOOKRUNNERS: 1/1/2020 TO DATE

Managing No of Total Share

bank or group issues €(m) (%)

Excluding ABS/MBS, equity-related debt.

Source: Refinitiv SDC code: N9

1 JP Morgan 50 22,262.85 8.5

2 BNP Paribas 57 19,160.70 7.3

3 SG 47 17,823.94 6.8

4 Barclays 54 17,697.16 6.7

5 Credit Agricole 54 17,129.86 6.5

6 HSBC 45 15,978.33 6.1

7 Deutsche Bank 47 13,920.64 5.3

8 UniCredit 46 12,513.15 4.8

9 Citigroup 29 10,628.50 4.1

10 BofA 31 10,472.55 4.0

Total 240 262,426.43

ALL INTERNATIONAL STERLING BONDS

EXCLUDING SECURITISATIONS

BOOKRUNNERS: 1/1/2020 TO DATE

Managing No of Total Share

bank or group issues £(m) (%)

Including preferreds. Excluding equity-related debt.

Source: Refinitiv SDC code: K05a

1 Barclays 29 5,748.55 14.3

2 HSBC 23 4,221.18 10.5

3 NatWest Markets 22 4,075.08 10.2

4 RBC 18 4,048.97 10.1

5 JP Morgan 10 2,452.10 6.1

6 Deutsche Bank 12 2,334.09 5.8

7 Lloyds Bank 10 2,205.36 5.5

8 TD Securities 9 2,181.40 5.4

9 Citigroup 11 2,162.89 5.4

10 BNP Paribas 7 1,439.20 3.6

Total 57 40,104.43

6 IFR Bonds 2322 p 25 - 43 .indd 31 28 / 02 / 2020 19 : 15 : 31