We were not fans of the new NXPI deal at the midpoints. We were encouraged to see that the bonds were priced on the cheap end--it was worth a few extra HOCS points, getting the deal at least into the mid-50's while allowing a bit more room for upside. The final HOCS slash line was 55 Overall/54 Growth/56 Safety.
With the bond pushing out nearly a point on swap in pre-open trading, the updated slash line is now 53/52/55. Again, these are adequate numbers for an "experienced" piece of paper but definitely on the low side for a $1 billion new issue. That's not to say the deal can't do well--it just doesn't score well on our ratings.