Mischler Financial Group -As Best Said by Coca-Cola, “Everything is Better When We’re Open!”
Below is excerpted from the September 14, 2020, edition of Quigley’s Corner, Mischler Financial Group’s daily debt market coverage and commentary distributed to Fortune 500 treasury teams, leading institutional investors, and the sell-side’s most recognized fixed income syndicate desks.
Investment Grade New Issues – Vaccine by End of October?
According to Pfizer’s CEO, Albert Boule, a Covid-19 vaccine will “likely” be available to the public prior to the end of 2020. Boule spoke on CBS’ “Face the Nation” on Sunday. All depends on approvals from the FDA. Boule said Pfizer is “preparing for it!” Certainly, a nice way to start a week. Risk was on, treasuries sold off and the new issue machine continued rolling out deals. As expected, this week should be a front-loaded one given the FOMC post-meeting conference on Wednesday. Today did not disappoint as the IG Corporate dollar DCM hosted 13 issuers across 19 tranches totaling $12.50b.
Among those new issues, Mischler Financial Group, Inc., our nation’s oldest diversity-certified investment bank that is owned and operated by Service-Disabled Veterans is honored to announce that it served as a Co-Manager on today’s €2.6b Euro-denominated 3-part Coca-Cola Company comprised of 8.5- 12.5 and 19.5-year tranches. Mischler thanks The Treasury/Funding team at The Coca Cola Company for our inclusion.
Here is a recap of the Investment Grade New Issues Priced today:
| Issuer | Ratings | Coupon | Maturity | Size | IPTs | GUIDANCE | LAUNCH | PRICED | LEADS |
| Brookfield Infrastructure Partners L.P. Green Issuance |
BBB-/NR | 5.125% | PerpNC5 | 200 | 5.25% | 5.125% # | 5.125% | $25 par Pfd Series “13” |
MS (phys) BofA/JPM/RBC/WFS |
| Chubb INA Holdings | A3/A | 1.375% | 9/15/2030 | 1,000 | +100a | +75a (+/-2) | +73 | +73 | CITI/JPM |
| Coca-Cola Company | A1/A+ | 1.00% | 3/15/2028 | 1,300 | +85a | +60a | +55 | +55 | BofA/BARC/CITI/JPM/SANT |
| Coca-Cola Company | A1/A+ | 1.375% | 3/15/2031 | 1,300 | +95a | +75a | +70 | +70 | BofA/BARC/CITI/JPM/SANT |
| Coca-Cola Company | A1/A+ | 2.50% | 3/15/2051 | 1,500 | +135a | +115a | +110 | +110 | BofA/BARC/CITI/JPM/SANT |
| Empower Finance 2020 Guar: Great-West Lifeco Inc. |
A+/A- | 1.357% | 9/17/2027 | 400 | +125a | +95a (+/-5) | +90 | +90 | GS/RBC/SCOT/WFS |
| Empower Finance 2020 Great-West Lifeco Inc. |
A+/A- | 1.776% | 3/17/2031 | 400 | +145a | +115a (+/-5) | +110 | +110 | GS/RBC/SCOT/WFS |
| Empower Finance 2020 Great-West Lifeco Inc. |
A+/A- | 3.075% | 9/17/2051 | 700 | +200a | +170a (+/-5) | +165 | +165 | GS/RBC/SCOT/WFS |
| Flowserve Corp. | Baa3/BBB- | 3.50% | 10/01/2030 | 500 | +325-337.5 +331.25a |
+287.5 | +287.5 | +287.5 | BofA/JPM/WFS (a) CACIB (p) |
| Healthcare Trust | Baa2/BBB | 2.00% | 3/15/2031 | 800 | +170a | +145a (+/-3) | +142 | +142 | JEFF/JPM/USB/WFS |
| HollyFrontier Corp. | Baa3/BBB- | 2.625% | 10/01/2023 | 375 | +287.5a | +255a (+/-5) | +250 | +250 | BofA/CITI/MUFG/TD |
| HollyFrontier Corp. | Baa3/BBB- | 4.50% | 10/01/2030 | 375 | +412.5a | +390a (+/-5) | +385 | +385 | BofA/CITI/MUFG/TD |
| OneAmerica Finc’l. Part. Inc. | A-/BBB+ | 4.25% | 10/15/2050 | 400 | +312.5a | +287.5a | +287.5 | +287.5 | GS/JPM |
| Protective Life Global Fdg. FA-backed |
A1/AA- | 1.737% | 9/21/2030 | 350 | +125a | +110a (+/-3) | +107 | +107 | CITI/DB/JPM/USB |
| Southern California Gas Co. | A2/A+ | FRN | 3nc6 9/14/2023 |
300 | 3mL+60-65 3mL+62.5a |
3mL+37.5a (+/-2.5) | 3mL+35 | 3mL+35 | GS/RBC/SCOT/WFS |
| Sumitomo Mitsui Finc’l. Grp. (tap) New Total: $2.35b |
A1/A- | 1.474% | 7/08/2025 | 850 | +100a | +80a (+/-5) | +75 | +75 | CITI/GS/JPM/SMBC |
| Sumitomo Mitsui Finc’l. Grp. | A2/BBB+ | 2.142% | 9/23/2030 | 850 | REV. IPTS: +175a IPTs: +185a |
+150a (+/-3) | +147 | +147 | CITI/GS/JPM/SMBC |
| UMB Financial Corp. | BBB+/A- | 3.70% | 10nc5 9/17/2030 |
200 | 4.00%a | 3.75%a (+/-5) | 3.70% | $100.00 Back-end: +343.7 |
BofA/JPM |
| WEC Energy Group Inc. | Baa1/BBB+ | 0.55% | 9/15/2023 | 700 | +60a | +45a (+/-5) | +40 | +40 | BofA/BARC/JPM/WFS |
Above is the opening extract from Quigley’s Corner aka “QC” 09-14-20 edition distributed via email to institutional investment managers, lead underwriter syndicate desks and Fortune Treasury clients of Mischler Financial Group, the investment industry’s oldest diversity-certified broker-dealer owned and operated by Service-Disabled Veterans.
The QC is a daily synopsis of everything Syndicate and Secondary as seen from the perch of Mischler’s primary debt capital markets desk. Commentary includes a comprehensive “deep dive” with optics on the day’s investment-grade corporate debt new issuance and secondary market data encompassing among other items, comparables, investment-grade credit spreads, new issue activity, secondary market most active issues, and upcoming deal pipeline.To receive Quigley’s Corner, please email: rquigley@mischlerfinancial.com or via phone 203.276.6646
