Commentary & Deal Flow

CFR CREDIT CLOSE: Largest Dog Days Wk 1; Aug $100bn Within Reach

With another $7.25bn added today, the week currently sits at $23.00bn.  Just $276m more and this will be the largest Dog Days Wk 1 on record.

We hear there could be a few trades on Wednesday that will definitely push this week above Dog Days Wk 1 2007’s record.

If Wednesday’s docket adds up to 1.900bn+ – August will hit triple-digit territory.

As for notables today:

On Monday and Tuesday, there were a total of 6 FABN issuers (3 on each day). This puts the current week (ending 8/22/25) at a total FABN volume of $5,500 with 6 deals, ranking the week of 8/22/25 as No. 4 and No. 5 on the All Time FABN Week Deal and Volume table, respectively.

Keeping up with the FABNs, MET priced in the top 5 for lowest 3yr FABN spreads looking back through 2022. NWMLIC from yesterday ranks second on this list.

MET and NRUC rank high in the list for 3yr FIG low coupons ytd. This list is dominated by August deals filling up the entire top 5.

Here's today's rundown:

[ALLIANZ SE] 

Allianz SE (ALVGR), exp issue ratings A3/A (issuer senior ratings Aa2/AA (s/s)), US$1.25bn 144A/Reg S PerpNC8.7 fixed rate resettable restricted Tier 1 notes. Reset date: 4/30/34 and thereafter any fifth anniversary of the preceding reset date.Rate of Interest: Fixed rate of per cent per annum, payable annually in arrear on 30 April in each year, commencing on 30 April 2026 (short first interest period) until (but excluding) the First Reset Date. Interest rate resets on the First Reset Date and every Reset Date thereafter to the sum of the applicable Reference Rate and the Margin (no step-up). Margin: per cent (determined at pricing vs. the annualized interpolated 7yr & 10yr US Treasury rates). UOP: General corporate purposes including the refinancing of existing debt (including the tender offer for the outstanding USD 1,250,000,000 3.500% Perpetual Fixed Rate Resettable Restricted Tier 1 Notes (ISIN: 144A: US018820AA81 / Reg S: USX10001AA78). Pricing 8/19. Settle 8/26 (T+5). 144A CUSIP: 018820AE0. 144A ISIN: US018820AE04.

    VIA BNP/BofA/Citi (B&D)/DB/HSBC joint lead managers.

Announced overnight as benchmark – we heard IPTs at 7.125%a.

IPTs were revised at the NY open to 6.875%a.

Ultimately, a $1.25bn deal priced  at 6.550%

$1.25bn, 6.550% at 100.044, yld 6.550%. Back-end reset: T+231.7.

As for r/v, outstanding ALVGR T2s (A1/A+) were quoted as follows:

- ALVGR 6.350% due 09/06/53 (nc 03/06/33) $105.65 (5.43% YTC; G134) - b/e T+323.2 - $1.00bn pxd AUG 2023
- ALVGR 5.600% due 09/03/54 (nc 03/03/34) $100.86 (5.47% YTC; G130) b/e +T+277.1 - $1.25bn pxd Aug 2024

Outstanding Allianz RT1 (A3/A) was quoted as follows:

- ALVGR 3.500% PERP (nc 11/17/25) $98.86 (8.12% YTC bid; G391) b/e T+297.3 - $1.25bn pxd NOV 2020
- ALVGR 3.200% PERP (nc 10/30/27 $92.93 (6.66% YTC bid; G293) – b/e T+216.5 - $1.25bn pxd SEPT 2021

** Bottom line, the only RT1s on this page to compare to are from ALVGR above, both of which are old and have short-dated calls. We’re going CONCESSION N/A.

Comps Away:

 Danske Bank A/S (BBB-/BBB)
- DANBNK 7.000% PERP (nc 02/19/30) $102.78 (6.28% YTC bid; G249) – b/e T+259.9 - $500m pxd 2/12/25

HSBC Holdings (Baa3/NR/BBB)
- HSBC 6.950% PERP (nc 8/27/31) $103.41 (6.43% YTC bid; G225)  - b/e T+277.1 - $1.5bn pxd 2/24/25

Nomura Holdings (Ba3/BB)
- NOMURA 7.000% PERP (nc 7/15/30) $102.23 (6.46% bid YTC; G264) – b/e T+308.4 - $1.00bn pxd 6/24/25

Nordea Bank (BBB/BBB+)
- NADFH 6.300% PERP (nc 9/25/31) $100.12 (6.27% bid YTC; G233) – b/e T+266 - $800m pxd SEPT 2024

UBS Group AG (Baa3/BB/BBB-)
-  UBS 7.000% PERP (nc 2/5/35) $100.75  (6.89% bid YTC; G264) – b/e T+329.6) - $1.25bn pxd 7/31/25

Royal Bank of Canada (Baa2/BBB/BBB+)
- RY 6.350% due 11/24/84 (nc 11/24/34) $95.98 (7.00% bid YTC; G277) – b/e T+225.7 - $1.00bn pxd OCT 2024

Bank of Montreal (Baa3/BBB-)
- BMO 7.3005 due 11/26/84 (nc 11/26/34) $104.19 (6.75% YTC; G251) – b/e T+301.0 - $750m pxd JULY 2024

Bank of America Corp (Baa2/BBB-/BBB+)
- BAC 6.250% PERP (nc 7/26/30) $99.97 (6.31% bid YTC; G249) – b/e T+235.1 - $2.50bn pxd 7/21/25

Citigroup (Ba1/BB+/BBB-)
- C 6.875% PERP (nc 8/15/30) $101.48 (6.58% bid YTC; G276) – b/e T+289.0) - $2.70bn pxd 7/16/25
- C 7.000% PERP (nc 8/15/34) $104.23 (6.43% bid YTC; G222) – b/e T+275.7) - $1.50bn pxd JULY 2024  

FINAL BOOKS:

$1.25bn 30nc5 - $7.000bn (5.60x) - PEAK $12.300bn

[METLIFE GLOBAL FUNDING] 

Metropolitan Life Global Funding I “MET” (Aa3/AA-/AA- (s/s/s)) US$1bn 144A/Reg S 3y fixed and/or floating sr secured FA-Backed 2-part due 8/25/28. FA Provider: Metropolitan Life Insurance Company. Floating rate observation period: the date two U.S. Government Securities Business Days before each the Settlement Date and each succeeding Interest Payment Date. Denoms: 150,000 x 1,000. Sale into Canada: Yes - exemption. UOP: to purchase one or more Funding Agreements from Metropolitan Life Insurance Company. Pricing 8/19. Settle 8/25 (T+4). 144A CUSIP: 592179KR5. 144A ISIN: US592179KR57.

VIA BofA (B&D)/MS/USB/WFS joint active books.

Announced as a benchmark, we heard initial price thoughts as T+70 area and SOFR equiv.

Guidance came in at 3y FXD T+45#, 3y FRN SOFR+70#.

Ultimately, a $1bn deal priced as follows:

$400m 8/25/28 FRN at SOFR+70, at 100.

$600m 4.15% 8/25/28 99.992 4.153% T+45.

 As for r/v, outstanding MET was quoted as follows:
-MET 5.050% due 06/11/27 T+43bp (G41; $101.50) - $650M pxd Jun 2024
-MET 4.900% due 01/09/30 T+49bp (G52; $102.33) - $500M pxd Jan 2025
-MET 5.150% due 03/28/33 T+49bp (G70; $102.21) - $1B pxd Mar 2023
-MET 5.050% due 01/08/34 T+64bp (G78; $100.67) - $550M pxd Jan 2024
**Outstanding Jan 30s G52; plus curve call new issue 5y f/v T+55bp; minus 10bp 3s/5s curve = T+45bp f/v. At the T+45bp pricing level, CONCESSION IS FLAT. 

Today’s deal priced 5bp over NWMLIC yesterday (+40bp on the 3y)

Comps away:

Met Tower Global Funding (Aa3/AA-/AA-)
-MET 4.800% due 01/14/28 T+46bp (G44; $101.42) - $600M pxd Jan 2025
-MET 5.250% due 04/12/29 T+48bp (G56; $103.14) - $500M pxd Apr 2024

Northwestern Mutual Global (Aa1/AA+/AAA)
-NWMLIC 4.110% due 09/12/27 T+34bp (G34; $100.05) - $600M pxd Sep 2024

-NWMLIC 4.490% due 03/21/28 T+45bp (G43; $100.82) - $600M pxd 03/18/25 +50

-NWMLIC 4.125% due 08/25/28 T+38bp (G38; $100.10) - $500M pxd 08/18/25 +40

-NWMLIC 4.600% due 06/03/30 T+48bp (G49; $101.10) - $400M pxd 05/27/25 +58

-NWMLIC 5.160% due 05/28/31 T+74bp (G65; $102.99) - $600M pxd May 2024

New York Life Global Fdg (Aa1/AA+/AAA)
-NYLIFE 4.150% due 07/25/28 T+40bp (G40; $100.12) - $600M pxd 07/22/25 +40

-NYLIFE 4.600% due 06/03/30 T+49bp (G50; $101.1) - $600M pxd 05/27/25 +58

-NYLIFE 5.350% due 01/23/35 T+65bp (G70; $102.7) - $750M pxd Jan 2025

Guardian Life Glob Funding (Aa1/AA+/N/A)
-GUARDN 5.550% due 10/28/27 T+41bp (G42; $102.89) - $450M pxd Oct 2022

-GUARDN 5.737% due 10/02/28 T+51bp (G50; $104.40) - $400M pxd Sep 2023

-GUARDN 4.179% due 09/26/29 T+46bp (G51; $99.61) - $500M pxd Sep 2024

-GUARDN 4.798% due 04/28/30 T+60bp (G62; $101.54) - $700M pxd 04/23/25 +80

Massmutual Global Funding (Aa3/AA+/AA+)
-MASSMU 4.300% due 10/22/27 T+45bp (G46; $100.20) - $500M pxd Oct 2024

-MASSMU 4.450% due 03/27/28 T+41bp (G39; $100.83) - $600M pxd 03/20/25 +55

-MASSMU 4.550% due 05/07/30 T+53bp (G54; $100.85) - $800M pxd 05/01/25 +80

-MASSMU 4.350% due 09/17/31 T+70bp (G58; $99.08) - $500M pxd Sep 2024

Pricoa Global Funding 1 (Aa3/AA-/AA-)
-PRU 4.700% due 05/28/30 T+61bp (G62; $101.0) - $650M pxd 05/20/25 +65

-PRU 5.350% due 05/28/35 T+81bp (G83; $101.6) - $600M pxd 05/20/25 +88

FINAL BOOKS:

$400m 3yr FRN - $1.150bn (2.88x) - PEAK $1.400bn

$600m 3yr FXD - $1.750bn (2.92x) - PEAK $2.300bn

[GRUPO NUTRESA]

Grupo Nutresa S.A., Baa3/BB+ (s/s) by Moody's/Fitch, US$1bn 144A/Reg S 2-part tap. $500m reopening of 8.00% sr notes due 05/12/30 ($1bn outstanding pre-tap) and $500m reopening of 9.00% sr notes due 05/12/35 ($1bn outstanding pre-tap). MWC then 1mo par call on 5y and 3mos on 10y. 101 CoC. Listing: Singapore Stock Exchange. Governing Law: New York. UOP: Repay local indebtedness and for general corporate purposes.

Marketing: www.dealroadshow.com | Code: NUTRESA2025.

Pricing 08/19. Settle 08/25.

VIA Citi/GS as joint active books.

Announced as a benchmark on Monday, leads indicated a $500m-$750m size with the tranche split to be determined by investor demand.

We heard IPTs of: 6.75% area on the 5y; 7.75% area on the 10y.

Guidance came in at: 6.5% (+/-5bp) on the 5y; 7.5% (+/-5bp) on the 10y.

Ultimately, a $1bn deal was priced as follows:

$500m tap of 8.00% 05/12/30 at 106.112 to yield 6.45%. 

$500m tap of 9.00% 05/12/35 at 110.383 to yield 7.45%.

As for r/v, leads were quoting outstanding NUTRES on Monday as follows:

NUTRES 8.000% due 05/12/30 $106.95 6.25%

NUTRES 9.000% due 05/12/35 $111.83 7.25%

At least two desks away from the deal had similar numbers, so CONCESSION IS 20BP.

However, at least two other desks were seeing tighter levels pre-announcement - as low as 6.21% on the 2030s and 7.19% on the 2035s. After the mandate announcement, the existing bonds drifted to ~6.4%/~7.4%.

BOOKS: $1.1bn/$1.3bn final (combined peak $3.2bn)

In both cases, the tap landed 155bp inside where the original bonds were priced (05/06/2025).

Post-tap, there will be $1.5bn outstanding under each note.

[FEDERATIONL DES CAISSES DESAJARDINS DU QUEBEQ]

Federation des Caisses Desjardins du Quebec ”CCDJ” (A1/A-/AA- s/s/s) US$750m 144A/Reg S no reg rights 5y FXD sr notes (bail-in) due 8/26/30. Early redemption: TLAC Disqualification Event / Tax Law Change. Bail-In Language: The Notes are Bail-inable and subject to the resolution powers of the AMF, including the bail-in powers under, among others, the second paragraph of section 40.50 of the Deposit Institutions and Deposit Protections Act (Québec), and the regulations thereunder. Issued under CCDJ's €13,000,000,000 Global Medium Term Note Programme. Registered form. The Notes are unlisted. Coupon type: Fixed-Rate, Semi-Annual, 30/360. Denoms: USD 200,000 x USD 1,000. Sales into Canada: Yes - via Exemption. UOP: gcp. Pricing 8/19. Settle 8/26 (T+5). 144A CUSIP: 31429KAP8. 144A ISIN: US31429KAP84. 

VIA Barc/BMO/GS/JPM/TD (B&D) joint active books.

Announced with benchmark size, we heard initial thoughts as T+100 area.

Went straight to launch at $750m 5y at T+75.

Ultimately, a $750m deal priced as follows:

$750m 4.565% 8/26/30 100.00 4.565% T+75. 

As for r/v, outstanding CCDJ was quoted as follows:

-CCDJ 5.250% due 04/26/29 (bullet) T+50bp (G58; $103.11) - $1bn pxd JAN 2024

We heard the main comps were the more recent Canadian banks TD and RY.

Toronto-Dominion Bank (A2/A-/AA-)
-TD 4.574% due 06/02/28 (bullet) T+50bp (G49; $100.95) - $1bn pxd 05/27/25 +65
-TD 4.808% due 06/03/30 (bullet) T+62bp (G63; $101.54) - $700m pxd 05/27/25 +78

Royal Bank of Canada (A1/A/AA-)
-RY 4.498% due 08/06/29 nc28 T+58bp (G58; $100.59) - $1.25bn pxd 07/28/25 +62.5
-RY 4.696% due 08/06/31 nc30 T+72bp (G72; $100.68) - $1bn pxd 07/28/25 +73

*** TD Jun ‘30 (bullet) G63, add 2bp for curve gets new issue TD 5y at 65bp. Plus 10bp for SEC to 144A differential gets f/v to T+75bp.

*** RY Aug nc ’30 G72, Take away 5-10bp for callable to bullet = 65bp. Add 10bp for SEC to 144A differential gets f/v to T+75bp.

At the T+75bp pricing level, CONCESSION IS FLAT.

COMPS AWAY:

Bank of Montreal (A2/A-/AA-)
-BMO 5.004% due 01/27/29 nc28 T+53bp (G51; $101.76) - $750m pxd JAN 2025
-BMO 4.640% due 09/10/30 nc29 T+54bp (G60; $101.02) - $800m pxd SEPT 2024

Bank of Nova Scotia (A2/A-/AA-)
-BNS 4.932% due 02/14/29 nc28 T+60bp (G58; $101.46) - $1.25bn pxd JAN 2025
-BNS 5.130% due 02/14/31 nc30 T+70bp (G73; $102.45) - $1bn pxd JAN 2025

Canadian Imperial Bank of Commerce (A2/A-/AA-)
-CM 4.857% due 03/30/29 nc28 T+62bp (G61; $101.30) - $1.4bn pxd MAR 2024
-CM 5.245% due 01/13/31 nc30 T+70bp (G73; $102.85) - $900m pxd JAN 2025

National Bank of Canada (A2/BBB+/A+)
-NACN 4.950% due 02/01/28 nc27 T+58bp (G49; $100.87) - $750m pxd JAN 2025
-NACN 4.500% due 10/10/29 (bullet)T+63bp (G68; $100.18) - $1bn pxd OCT 2024

FINAL BOOK:

$750m 5yr - $2.650bn (3.53x) - PEAK $3.100bn

[NAT RURAL]

National Rural Utilities Cooperative Finance Corp “NRUC”, (A2/A s/s by Moody's/Fitch) hit the market today with US$700m SEC registered 3y FXD sr notes due 8/25/28. MWC then 1mo par call. Denoms: 2,000 x 1,000. UOP: gcp. Pricing 8/19. Settle 8/25 (T+4). CUSIP: 63743HFZ0. ISIN: US63743HFZ01.

VIA MUFG (B&D)/RBC/TSI joint active books.

Announced with benchmark size, we heard initial thoughts as T+70-75bp.

Guidance came in at 48#.

Ultimately, a $700m deal priced as follows:

 $700m 4.15% 8/25/28 99.888 4.19% T+48. MW+10.

As for r/v, outstanding NRUC was quoted as follows:

 - NRUC 4.120% due 09/15/27 T+35bp (G35; $100.03) - $550m pxd SEPT 2024
- NRUC 4.750% due 02/07/28 T+44bp (G42; $101.34) - $600m pxd 2/4/25 +52
- NRUC 5.050% due 09/15/28 T+ 47bp (G47; $102.53) - $400m pxd JUNE 2023
- NRUC 4.950% due 02/07/30 T+46bp (G49; $102.61) - $500m pxd 2/4/25 +67

* Feb 28s T+44bp (using T since G inverted) + curve T+47bp; Sept ‘28s G47; Feb ‘30s G49;  Average out all of the above, f/v is T+48bp.  At the T+48bp pricing level, CONCESSION IS FLAT. 

Captive Comps away:

Paccar Financial Corp (A1/A+)
- PCAR 4.000% due 08/08/28 T+29bp (G29;  $100.00) - $400m pxd 8/4/25 +37.5
- PCAR 4.550% due 05/08/30 T+40bp (G41; $101.38) - $350m pxd 5/5/25 +62.5

John Deere Capital Corp (A1/A/A+)
- DE 4.250% due 06/05/28 T+31bp (G30; $100.61) - $700m pxd 6/2/25 +38
- DE 4.375% due 10/15/30 T+50bp (G48; $100.25) - $600m pxd 7/21/25 +50

Caterpillar Financial Services (A2/A/A+)
- CAT 4.100% due 08/15/28 T+35bp (G35; $100.12) - $750m pxd 8/11/25 +38
- CAT 4.800% due 01/08/30 T+34bp (G37; $102.53) - $450m pxd 1/6/25 +42

Front-end Utilities:

DTE Electric (Aa3/A/A+)
- DTE 4.250% due 05/14/27 T+30bp (G26; $100.33) - $300m pxd 5/5/25 +45

Duke Energy Progress LLC (Aa3/A)
- DUK 4.350% due 03/06/27 T+28bp (G21; $100.48) - $500m pxd 3/3/25 +40

Public Service New Hampshire (A1/A/A+)
- ES 4.400% due 07/01/28 T+36bp (G36; $100.89) - $300m pxd 6/16/25 +50

Duke Energy Carolinas (Aa3/A) )
- DUK 4.850% due 03/15/30 T+45bp (G48; $102.35) - $400m pxd 1/2/25 +50

NSTAR Electric (A2/A-/A)
- $400m due 03/01/30 T+50bp (G53; $102.13) - $400m pxd 2/24/25 +65

FINAL BOOK:

$700m 3yr - $1.440bn (2.06x) - PEAK $2.000bn

[PRICOA GLOBAL FUNDING] 

PRICOA Global Funding I “PRU” (Aa3/AA-/AA- s/s/s) hit the market today with US$600m 144A/Reg S 7y FXD sr secured FA-Backed due 8/26/32. Co-mgrs: Drexel, Seelaus. Funding Agreement Provider: The Prudential Insurance Company of America. Denoms: 150,000 x 1,000. Sale into Canada: Yes, via Exemption. UOP: to purchase a Funding Agreement from The Prudential Insurance Company of America. Pricing 8/19. Settle 8/26 (T+5). 144A CUSIP: 74153WCY3. 144A ISIN: US74153WCY30. 

VIA BofA (B&D)/GS/HSBC/SMBC joint active books.

Announced as a benchmark, we heard initial price thoughts as T+100 area.

Guidance came in at T+73#.

Ultimately, a $600m deal priced as follows:

$600m 4.75% 8/26/32 99.917 4.764% T+73. 

 As for r/v, outstanding PRU was quoted as follows

-PRU 4.700% due 05/28/30 T+61bp (G62; $101.0) - $650M pxd 05/20/25 +65

-PRU 5.350% due 05/28/35 T+81bp (G83; $101.6) - $600M pxd 05/20/25 +88

** Outstanding May 35s G83; call new 10y issue T+85bp; minus 10-15bp 7s/10s curve, call f/v T+73bp f/v. At the T+73bp pricing level, CONCESSION IS FLAT.

Comps away:

New York Life Global Fdg (Aa1/AA+/AAA)

-NYLIFE 4.600% due 06/03/30 T+49bp (G50; $101.1) - $600M pxd 05/27/25 +58

-NYLIFE 5.350% due 01/23/35 T+65bp (G70; $102.7) - $750M pxd Jan 2025

Metropolitan Life Global Funding I (Aa1/AA+/AAA)
-MET 4.900% due 01/09/30 T+49bp (G52; $102.33) - $500M pxd Jan 2025
-MET 5.050% due 01/08/34 T+64bp (G78; $100.67) - $550M pxd Jan 2024

Northwestern Mutual Global (Aa1/AA+/AAA)
-NWMLIC 4.600% due 06/03/30 T+48bp (G49; $101.10) - $400M pxd 05/27/25 +58

Pacific Life Global Funding II (Aa3/AA-/AA-)
-PACLIF 4.850% due 02/10/30 T+62bp (G65; $101.5) - $400M pxd 2/5/25 +62
-PACLIF 4.875% due 07/17/32 T+68bp (G68; $100.7) - $600M pxd 7/10/25 +75

FINAL BOOKS:

$600m 7yr - $1.500bn (2.50x) - PEAK $2.300bn

[MASSMUTUAL GLOBAL FUNDING]

MassMutual Global Funding II (MASSMU) exp Aa3/AA+/AA+ (s/s/s) US$600m 144A/Reg S 10y FXD sr secured FA-Backed due 8/26/35. FA Provider: Massachusetts Mutual Life Insurance Company. Denoms: 200,000 x 2,000. Sale into Canada: Yes, via exemption. UOP: To acquire a funding agreement from the General Account of the Massachusetts Mutual Life Insurance Company. Pricing 8/19. Settle 8/26 (T+5). 

VIA BofA/DB/GS/JPM (B&D) joint active books.

Announced with benchmark size, we heard initial price thoughts as T+105 area.

Guidance came in at T+78#.

Ultimately, a $600m deal priced as follows:

$600m 5.05% 8/26/35 99.783 5.078% T+78.

As for r/v, outstanding MASSMU was quoted as followsL
-MASSMU 4.300% due 10/22/27 T+45bp (G46; $100.20) - $500M pxd Oct 2024

-MASSMU 4.450% due 03/27/28 T+41bp (G39; $100.83) - $600M pxd 03/20/25 +55

-MASSMU 4.550% due 05/07/30 T+53bp (G54; $100.85) - $800M pxd 05/01/25 +80

-MASSMU 4.350% due 09/17/31 T+70bp (G58; $99.08) - $500M pxd Sep 2024

** Outstanding May 30s G54; call new 5yr T+55bp; plus 20-25bp 5s/10s curve, call f/v T+78bp. At the T+78bp pricing level, CONCESSION IS FLAT.

Comps away:

Metropolitan Life Global Funding I (Aa1/AA+/AAA)
-MET 4.900% due 01/09/30 T+49bp (G52; $102.33) - $500M pxd Jan 2025
-MET 5.150% due 03/28/33 T+49bp (G70; $102.21) - $1B pxd Mar 2023
-MET 5.050% due 01/08/34 T+64bp (G78; $100.67) - $550M pxd Jan 2024

New York Life Global Fdg (Aa1/AA+/AAA)

-NYLIFE 4.600% due 06/03/30 T+49bp (G50; $101.1) - $600M pxd 05/27/25 +58

-NYLIFE 5.350% due 01/23/35 T+65bp (G70; $102.7) - $750M pxd Jan 2025

Pricoa Global Funding 1 (Aa3/AA-/AA-)
-PRU 4.700% due 05/28/30 T+61bp (G62; $101.0) - $650M pxd 05/20/25 +65

-PRU 5.350% due 05/28/35 T+81bp (G83; $101.6) - $600M pxd 05/20/25 +88

FINAL BOOKS:

$600m 10yr - $1.500bn (2.50x) - PEAK $2.300bn

[HANOVER GROUP] 

The Hanover Insurance Group Inc “THG” (Baa2/BBB s/s) hit the market today with US$500m SEC registered 10y FXD sr notes due 9/1/35. MWC then 3mos par call. Denoms:

2,000 x 1,000. Sales into Canada: Yes - Exemption. Marketing: https://dealroadshow.com/e/THG2025 Passcode: THG2025.

UOP: To repay the full $61.8 million principal amount of the outstanding 7.625%

Senior Debentures due 2025, to repay or redeem the full $375.0 million

principal amount of the outstanding 4.500% Notes due 2026, and for general corporate

purposes. CUSIP/ISIN: 410867AH8 / US410867AH87. Pricing 8/19. Settle 8/21

(T+2).

VIA GS (B&D)/JPM/MS joint active books.

Announced with benchmark size, we heard initial thoughts as T+150a.

The deal went straight to launch - $500m at T+120bp

PRICED: $500m 5.50% 9/1/35 99.983 5.502% T+120.

As for r/v, the only outstanding is old and small:

THG 2.500% due 09/01/30 T+92bp (G91; $90.08) - $300m pxd 8/19/20.

With this bond deemed too tight, market players said investors looked at the following:

Assurant Inc (Baa2/BBB)
- AIZ 5.550% due 02/15/36 T+127bp (G124; $99.80) - $300m pxd 8/14/25 +130

Selective Insurance Group (Baa2/BBB/BBB+)
- SIGI 5.900% due 04/15/35 T+124bp (G129; $102.56) - $400m pxd 2/20/25.

At one point earlier in the process some heard THG was being talked SIGI + 5bp. 

However, AIZ (G124) is obviously a very recent data point – just priced last Thursday.  Most thought THG should land a few inside AIZ (G124) – and it did.

At the T+120bp pricing level, CONCESSION IS FLAT.

FINAL BOOKS:

$500m 10yr - $2.300bn (4.60x) – PEAK $3.500BN 

[AMERICAN NATIONAL GROUP] 

American National Group Inc “ANGINC” exp issue ratings BB+/BB+ (s/s) by S&P/Fitch, US$500m SEC registered $1,000 par 30nc5 fixed rate reset jr subordinated notes due 12/1/55. 12/1/30 first reset date.. Coupon Structure: Fixed-Rate Reset, payable semi-annually in arrears. Resets will occur on December 1, 2030 (the “First Reset Date”) and every fifth anniversary thereafter at the Five-year U.S. Treasury Rate plus a spread (Coupon cannot reset lower than initial coupon). Par Call: 90 days prior to, and including, the First Reset Date at par. After the First Reset Date, redeemable at par at any interest payment date. Optional Redemption: Rating Agency Event at 102% of par (within 90 days of event); Regulatory Capital Event at par (within 90 days of event); Tax Event at par (within 90 days of event). Interest payment dates: Semi-annually in arrears on June 1 and December 1 of each year, commencing on December 1, 2025. Denoms: 2,000 x 1,000. Sale into Canada: Yes - Exemption. UOP: to redeem the Series B Preferred Stock in full and the related depositary shares in accordance with the terms thereof and, to the extent any proceeds remain, for general corporate purposes. Marketing: https://dealroadshow.com/e/ANGI2025. Pricing 8/19. Settle 8/22 (T+3). CUSIP/ISIN: 025676AR8 / US025676AR82. 

VIA HSBC/TD/WFS (B&D) joint active books

Announced with benchmark size, we heard initial thoughts as 7.50% area.

Guidance came in at 7.00%#.

Ultimately, a $500m deal priced as follows:

$500m 7.00% 12/1/55 100.00 7.00%. Back-end reset: 5y UST+318.3.

As for r/v, ANGINC does not have any outstanding hybrids, thus CONCESSION N/A.

Some tried pegging a nic against ATH priced in June however there were many assumptions to make. The outstanding was a nc10 with a floor provision vs todays new issue which was a nc5 without a floor. ANGINC 10yr seniors trade about 35bp back of ATH.

Hybrids:

Athene Holding Ltd (Baa2/BBB/BBB-)
-ATH 6.875% due 06/28/55 nc 03/28/35 $99.67 (G263; 6.922% YTC) - $600m pxd 06/24/25 b/e +258.2

Corebridge Financial Inc (Baa3/BBB-/BBB-)
-CRBG 6.375% due 09/15/54 nc 09/15/34 $100.52 (G208; 6.298% YTC) - $750m pxd SEPT 2024 b/e +264.6

Global Atlantic Fin Co (Baa3/BB+/BB+)
-GBLATL 7.950% due 10/15/54 nc 07/15/29 $105.03 (G271; 6.470% YTC) - $600m pxd JUN 2024 b/e +360.8

Reinsurance Group of America Inc (Baa2/BBB+/BBB-)
-RGA 6.650% due 09/15/55 nc 06/15/35 $100.73 (G226; 6.548% YTC) - $700m pxd FEB 2025 b/e +239.2

Seniors:

American National Group (NR/BBB/BBB)
-ANGINC 5.750% due 10/01/29 T+115bp (G120; $102.81; 4.983% YTM) - $600m pxd SEPT 2024
-ANGINC 6.000% due 07/15/35 T+157bp (G160; $100.87; 5.870% YTM) - $700m pxd 06/24/25 +175

*** Oct ‘29 4.98% YTM, add 10bp for ‘29/30 curve = 5.10%. At the 7.00% pricing level, NC5 Sr-Sub differential is 190bp.

Athene Holding Ltd (Baa1/A-/BBB+)
-ATH 5.875% due 10/15/33 T+105bp (G121; $103.37; 5.360% YTM) - $600m pxd DEC 2023

Corebridge Financial Inc (Baa2/BBB+/BBB+)
-CRBG 5.750% due 01/15/34 T+83bp (G99; $104.01) - $750m pxd DEC 2023

Global Atlantic Fin Co (Baa2/BBB/BBB)
-GBLATL 7.950% due 06/15/33 T+145bp (G166; $113.27) - $650m pxd DEC 2023

Reinsurance Group of America Inc (Baa1/A/BBB+)
-RGA 5.750% due 09/15/34 T+105bp (G115; $102.71) - $650m pxd MAY 2024

FINAL BOOK:

$500m 30nc5 - $1.550bn (3.10x) - PEAK $2.300bn

[BLOCK FINANCIAL] 

Block Financial LLC “HRB” (Baa3/BBB s/s) US$350m (no grow) SEC registered 7y FXD sr notes due 9/15/32. MWC then 2mos par call. 101 CoC. Covenants: Limitations on liens
Limitation on mergers and other transactions. Guarantor: H&R Block Inc (HRB). Denoms: 2,000 x 1,000. Sale into Canada: Yes - exemption. UOP: General corporate purposes, which may include, among other uses, redeeming or repaying Block Financial LLC’s 5.250% notes due 2025. Marketing: https://dealroadshow.com Passcode: HRB2025. Pricing 8/19. Settle 8/26 (T+5). CUSIP: 093662AK0. ISIN: US093662AK00. 

VIA JPM (B&D)/PNC/USB joint active books. 

Announced as $350m no grow, we heard initial thoughts as T+162.5 area.

Went straight to launch at $350m 7y at T+137.5.

Ultimately, a $350m deal priced as follows:

$350m 5.375% 9/15/32 99.787 5.411% T+137.5. MW+25.

As for r/v, outstanding HRB was quoted as follows:

-HRB 2.500% due 07/15/28 T+80bp (G80; $94.60) - $500m pxd JUN 2021
-HRB 3.875% due 08/15/30 T+107bp (G107; $95.55) - $650m pxd AUG 2020

3s/5s curve is worth about 25bp, assume 20bp for 5s/7s curve.

*** Aug ’30 G107, add 20bp for 5s/7s curve gets f/v to T+127bp. At the T+137.5bp pricing level, CONCESSION IS 10BP.

COMPS AWAY:

Moody’s Corp (NR/BBB+/BBB+)
-MCO 4.250% due 08/08/32 T+32bp (G59; $97.77) - $500m pxd AUG 2022
-MCO 5.000% due 08/05/34 T+59bp (G70; $100.72) - $500m pxd JUL 2024

Western Union Co (Baa2/BBB)
-WU 2.750% due 03/15/31 T+145bp (G138; $87.97) - $300m pxd FEB 2021

Equifax Inc (Baa2/BBB)
-EFX 5.100% due 12/15/27 T+54bp (G55; $101.72) - $750m pxd SEPT 2022
-EFX 5.100% due 06/01/28 T+58bp (G57; $102.05) - $700m pxd MAY 2023
-EFX 4.800% due 09/15/29 T+62bp (G68; $101.30) - $650m pxd AUG 2024

Fiserv Inc (Baa2/BBB)
-FI 4.750% due 03/15/30 T+66bp (G69; $101.09) - $850m pxd AUG 2024
-FI 4.550% due 02/15/31 T+79bp (G73; $99.70) - $1bn pxd 08/04/25 +87
-FI 5.150% due 08/12/34 T+86bp (G95; $99.88) - $900m pxd AUG 2024
-FI 5.250% due 08/11/35 T+98bp (G98; $99.71) - $1bn pxd 08/04/25 +107

Verisk Analytics Inc (Baa1/BBB)
-VRSK 4.500% due 08/15/30 T+68bp (G68; $99.99) - $750m pxd 08/07/25 +72vr
-VRSK 5.750% due 04/01/33 T+61bp (G84; $105.08) - $500m pxd MAR 2023
-VRSK 5.250% due 06/03/34 T+71bp (G84; $101.59) - $600m pxd MAY 2024
-VRSK 5.250% due 03/15/35 T+87bp (G93; $100.52) - $700m pxd MAR 2025
-VRSK 5.125% due 02/15/36 T+91bp (G88; $99.25) - $750m pxd 08/07/25 +92

Paychex Inc (Baa1/BBB+)
-PAYX 5.350% due 04/15/32 T+79bp (G84; $102.86) - $1.5bn pxd 04/08/25 +135
-PAYX 5.600% due 04/15/35 T+89bp (G94; $102.95) - $1.2bn pxd 04/08/25 +145

Fidelity National Information Services (Baa2/BBB)
-FIS 5.100% due 07/15/32 T+51bp (G81; $101.58) - $750m pxd JUL 2022

FINAL BOOK:

$350m 7yr - $1.200bn (3.43x) - PEAK $1.400bn

[NEW MANDATES & MARKETING]

- Aflac Incorporated ("Aflac" or the "Company") has mandated TD Securities (USA) LLC & Goldman Sachs & Co. LLC as Lead Active Bookrunners, and Mizuho Securities USA LLC, SMBC Nikko Securities America, Inc. & Wells Fargo Securities, LLC as Active Bookrunners, to host a series of global fixed income investor calls on Tuesday, August 19th. An inaugural issuance by newly formed trusts for this offering of 10 and/or 30-year fixed-rate Pre-Capitalized Trust Securities (the “P-Caps”) denominated in U.S.-dollars pursuant to Rule 144A under the Securities Act of 1933, as amended, and Section 3(c)(7) of the Investment Company Act of 1940, as amended, may follow, subject to market conditions. This issuance will be pursuant to a preliminary offering memorandum. Any P-Caps issued are expected to be rated A3 (stable) by Moody's and A- (stable), in-line with the existing senior unsecured notes of Aflac.

TD Securities (USA) LLC is Sole Structuring Advisor. Goldman Sachs & Co. LLC is coordinating marketing logistics.

Company Representatives:

Max Broden, Senior Executive Vice President – Chief Financial Officer

David Young, Vice President – Capital Markets

Sebastian Cahill, Vice President – Corporate Treasurer

Bank Representatives:

Arvind Sriram, Managing Director, Head of Insurance Investment Banking, TD

Ellery Kauvar, Director, Insurance Investment Banking, TD

Tom Healy, Managing Director, GS

Kyle Fischer, Vice President, GS

About Aflac Incorporated

Aflac Incorporated (NYSE: AFL), through its subsidiaries and affiliates (“Aflac”), provides financial protection to millions of policyholders and customers in Japan and the United States (U.S.). Aflac was incorporated in 1973 under the laws of the State of Georgia and is 

authorized to conduct insurance business in all 50 states, the District of Columbia, several U.S. territories and Japan.

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