Commentary & Deal Flow

CFR CREDIT CLOSE: 14 Deals/$12.100bn - But Could Have Been More

Today’s tally was 14 deals for $12.100bn, but we could have seen a lot more, with as many as 6 deals standing down this morning.

Pre-8am, we heard the following in terms of what shops had looking today:

1 desk: 9 deals

2 desks: 8 deals

1 desk: 6 deals

2 desks: 5 deals

1 desk: 4 deals

2 desks: 3 deals

7 desks: 2 deals

7 desks: 1 deal

8 desks: 0

In the end, we heard the following in terms of stand downs:

5-6 stand downs – 1 shop

3-4 stand downs – 1 shop

2 stand downs – 2 shops

1 stand down:  7 shops

Some heard a couple of today’s possibilities had doc issues, but the rates landscape as go/no go calls were taking place scared others away.  With the 30yr UST yield bumping up against 5% around 8:30am this morning (high for the day was 4.997% at 8:32am), a number of issuers opted to take a pass.

Of course, rates did a 180 following JOLTS – which showed the number of job openings falling to 7.18m (vs a 7.38m estimate) from 7.36m prior (revised down from 7.44m). Job openings are now at their lowest level in 10 months, but they’re also below the number of unemployed workers (7.20m) for the first time since April 2021. 

The JOLTS read was enough to convince the market that Fed will cut interest rates this month.  Contracts predicting Fed moves priced in about a 95% chance for a quarter-point cut on Sept 17.

Right around 5pm – the 30yr UST yield was at 4.897%.  The 10yr UST yield – which closed at 4.263% on Tuesday was at 4.217%

So if rates WAS actually the reason for so many stand downs – these deals may return on Thursday if the market holds.

As it stands now, the week is still short of the average estimate:

Today's EXC came in with a 7bp 10s/30s curve, coming behind yesterday's BHP at 6bp L10/30s. MRK from yesterday also priced a 7bp 10s/30s curve. All three deals rank top 5 on the tightest 10s/30s curve 2025 table.

As for utility-only, EXC's 10s/30s curve came only behind XEL from last month and NEE from January 2024 looking back through 2021.

Yesterday's MITCO also priced a tight 3s/5s curve at 5bp. Below is a list of other recent 5bp 3s/5s curves. Before these deals, the last time there was a 5bp 3s/5s was in July 2021

On the low coupon front, Tuesday's MITCO tied for the lowest 2025 3yr coupon. Today's trade from SO ties for No. 2.

Today's SO also came in No. 3 on the 2022-2025 3yr UTILITY Low Spread Table:

Here's today's rundown:

[DOW CHEMICAL] 

The Dow Chemical Co “DOW” (Baa2/BBB/BBB (n/n/s)) US$1.4bn SEC registered 2-part sr notes (long 5y due 1/15/31 and long 10y due 3/15/36). MWC then 1mo par call on L5y and 3mos on L10y. 101 CoC. Sale into Canada: Yes - Exemption. UOP: gcp. Pricing 9/3. Settle 9/8 (T+3). 

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

Announced as a benchmark, we heard initial price thoughts as L5y T+140 area, L10y T+170 area.

Guidance came in at L5y T+115#, L10y T+145#.

Ultimately, a $1.4bn deal priced as follows:

$750m 4.80% 1/15/31 99.810 4.842% T+115. MW+20.

$650m 5.65% 3/15/36 99.865 5.667% T+145. MW+25.

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

-DOW 2.100% due 11/15/30 T+95bp (G93; $88.38) - $850M pxd Aug 2020
-DOW 5.150% due 02/15/34 (green) T+105bp (G120; $99.22) - $600M pxd Feb 2024
-DOW 5.350% due 03/15/35 T+127bp (G132; $98.93) - $400M pxd Feb 2025
-DOW 5.950% due 03/15/55 T+163bp ($92.37) - $600M pxd Feb 2025

**L10y - outstanding Mar 35s G132; plus 5bp for curve = T+137bp f/v. At the T+145bp pricing level, L10Y CONCESSION IS 8BP.
**L5y - L10y f/v T+137bp; minus 30bp L10/L5 curve at IPT = T+107bp. At the T+115bp pricing level, L5Y CONCESSION IS 8BP.

FINAL BOOKS

$750m L5yr - $2.500bn (3.33x) - PEAK $3.000bn

$650m L10yr - $2.400bn (3.69x) - PEAK $3.250bn

[PLAINS ALL-AMERICAN] 

Plains All American Pipeline LP “PAA” (Baa2/BBB/BBB (s/s/s)) US$1.25bn SEC registered 2-part global sr notes (long 5y FXD due 1/15/31 and long 10y FXD due 1/15/36). MWC then 1mo par call on L5y and 3mos on L10y. Denoms: 2,000 x 1,000. UOP: to redeem the 4.65% Senior Notes due October 2025 and to use the remaining net proceeds to fund a portion of the purchase price for the EPIC Acquisition and, pending such uses, for general partnership purposes, which may include, among other things, intra-group lending and related transactions, repayment of indebtedness, acquisitions, capital expenditures and additions to working capital. If we do not complete the EPIC Acquisition, we expect to use the portion of the net proceeds from this offering related thereto for general partnership purposes. Pricing 9/3. Settle 9/8 (T+3). CUSIP: L5y: 72650RBR2, L10y: 72650RBS0. ISIN: L5y: US72650RBR21, L10y: US72650RBS04.

VIA BofA (B&D)/Barc/PNC/TD/WFS joint active books.

Announced as a benchmark, we heard initial price thoughts as L5y T+137.5 area, L10y T+170 area.

Guidance came in at L5y T+105#, L10y T+142#.

Ultimately, a $1.25bn deal priced as follows:

$700m 4.70% 1/15/31 99.865 4.730% T+105. MW+20.

$550m 5.60% 1/15/36 99.798 5.627% T+142. MW+25.

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

-PAA 3.550% due 12/15/29 T+83bp (G87; $96.04) - $1B pxd Sep 2019
-PAA 3.800% due 09/15/30 T+93bp (G93; $96.103) - $750M pxd Jun 2020
-PAA 5.700% due 09/15/34 T+122bp (G134; $101.387) - $650M pxd Jun 2024
-PAA 5.950% due 06/15/35 T+138bp (G142; $102.117) - $1B pxd Jan 2025

** L10y - Outstanding Jun 35s G142; plus 1bp for curve= T+143bp f/v. At the T+142bp pricing level, L10Y CONCESSION IS NEG 1BP.

** L5y - L10y f/v T+143bp; minus 32.5bp L10/L5 curve at IPT = T+110.5bp f/v.

or using outstanding Sep 30s G93; plus 5bp for curve = T+98bp f/v.

Going mid-point, L5Y CONCESSION IS FLAT.

Comps away:

Enterprise Products Operating LLC (A3/A-/A-)
-EPD 2.800% due 01/31/30 T+55bp (G58; $94.043) - $1.25B pxd Jan 2020
-EPD 4.600% due 01/15/31 T+72bp (G69; $100.608) - $750M pxd 06/17/25 +65
-EPD 4.950% due 02/15/35 T+79bp (G84; $99.112) - $1.1B pxd Aug 2024
-EPD 5.200% due 01/15/36 T+90bp (G87; $100.154) - $750M pxd 06/17/25 +85

Enbridge Inc (Baa2/BBB+/BBB+)
-ENBCN 4.900% due 06/20/30 T+76bp (G78; $101.644) - $600M pxd 06/16/25 +87
-ENBCN 5.550% due 06/20/35 T+109bp (G113; $101.335) - $900M pxd 06/16/25 +112

Kinder Morgan Inc (Baa2/BBB/BBB+)
-KMI 5.150% due 06/01/30 T+80bp (G82; $102.493) - $1.1B pxd 04/22/25 +120
-KMI 5.850% due 06/01/35 T+111bp (G116; $103.38) - $750M pxd 04/22/25 +150

Energy Transfer LP (Baa2/BBB/BBB)
-ET 5.200% due 04/01/30 T+83bp (G86; $102.498) - $650M pxd Feb 2025
-ET 5.700% due 04/01/35 T+125bp (G131; $101.232) - $1.25B pxd Feb 2025

MPLX LP (Baa2/BBB/BBB)
-MPLX 4.800% due 02/15/31 T+112bp (G107; $99.674) - $1.25B pxd 08/07/25 +103
-MPLX 5.000% due 01/15/33 T+124bp (G120; $98.663) - $750M pxd 08/07/25 +118
-MPLX 5.400% due 09/15/35 T+136bp (G135; $98.176) - $1.5B pxd 08/07/25 +130

Oneok Inc (Baa2/BBB/BBB)
-OKE 4.400% due 10/15/29 T+74bp (G79; $99.668) - $600M pxd Sep 2024
-OKE 4.950% due 10/15/32 T+113bp (G112; $99.032) - $750M pxd 08/06/25 +103
-OKE 5.400% due 10/15/35 T+134bp (G133; $98.307) - $1B pxd 08/06/25 +122

Targa Resources Corp (Baa2/BBB/BBB)
-TRGP 4.900% due 09/15/30 T+89bp (G89; $101.15) - $750M pxd 06/04/25 +100
-TRGP 5.550% due 08/15/35 T+129bp (G129; $99.868) - $1B pxd Feb 2025
-TRGP 5.650% due 02/15/36 T+130bp (G128; $100.564) - $750M pxd 06/04/25 +133

Western Midstream Operat (Baa3/BBB-/BBB-)
-WES 4.050% due 02/01/30 T+108bp (G111; $96.956) - $1.2B pxd Jan 2020
-WES 5.450% due 11/15/34 T+143bp (G151; $98.171) - $800M pxd Aug 2024

FINAL BOOKS:

$700m L5yr - $4.050bn (5.79x) - PEAK $5.250bn

$550m L10yr - $3.625bn (6.59x) - PEAK $4.700bn

[SUMITOMO LIFE INSURANCE]

Sumitomo Life Insurance Co (SUMILF), exp issue ratings

A3/A- by Moody's/Fitch (issuer ratings A1/A+ by Moody's/Fitch), US$1.2bn 144A/Reg S 30nc10 fixed to fixed step-up callable dated subordinated notes due

9/10/55. First call date: 9/10/35. Coupon: % fixed (semi-annual, 30/360) until

September 10, 2035, thereafter reset every 5 years to a new fixed rate equal to

applicable constant maturity 5-year U.S. Treasury rate + bp (initial credit

spread + 100bps step-up), payable semi-annually until the notes are fully

redeemed. Issuer Redemption Option: 10 years after the issue date (“First Call

Date”) and thereafter every 5 years. Pricing 9/3. Settle 9/10 (T+5).

VIA JPM (B&D)/BofA/GS/SMBC Nikko joint books.

Announced overnight with benchmark size, we heard initial thoughts as 6.125% area.

Guidance came in at 5.875%.

Ultimately, a $1.2bn 30nc10 priced as follows:

PRICED: $1.2bn 5.875% 9/10/55 100.00 5.875%. Reoffer spread: T+165.1. Back-end reset (100bps step-up): T+265.1.

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

SUMILF 5.875% Perp (nc 1/18/34) $101.63 (5.627% YTC; G152) – b/e T+284 incl step – $1.040bn pxd JAN 2024

We heard concession at IPT was 37.5bp back.  The deal tightened in 25bp, so we heard the NIC WAS PEGGED AT 12.5bp. We’re not 100% sure how this f/v level was established but, the MYLIFE bond below was trading at 5.727% YTC, so a 5.75% f/v level would make sense.

Comps away:

Dai-Ichi Life Insurance (A-/A)
- DAIL 6.200% Perp (nc 1/16/35) $103.50 (5.711% YTC; G151) – b/e T+251.5 incl step) - $2.0bn pxd 1/7/25

Nippon Life Insurance (A3/A-)
- NIPLIF 6.500% due 04/30/55 (nc 04/30/35) $106.00 (5.682% YTC; G145) – b/e T+318.9 incl step) - $1.5bn pxd 4/24/24

Meiji Yasuda Life Insurance (A3/A-)
- MYLIFE 6.100% due 06/11/55 (nc 06/11/35) $102.75 (5.727% YTC; G148) – b/e T+291.1 incl step) - $2.10bn pxd 3/4/25

FINAL BOOK:

$1.2bn 30nc10 - $3.600bn (3.00x) – PEAK $4.300BN

[GC TREASURY CENTER (PTT GLOBAL CHEMICAL)]

GC Treasury Center Co Ltd “PTTGC” exp issue ratings Ba2/BB by Moody's/Fitch (guarantor ratings Baa3/BBB-/BBB- (n/s/s)), US$1.1bn 144A/Reg S (Cat 2)/3(c)7 2-part Subordinated Perpetual Capital Securities (PNC5.25 and PerpNC10). Guarantor: PTT Global Chemical PCL (the “Company”). Initial guaranteed amount: 120% of the outstanding principal amount, with guarantee top up. Guarantee Period: The Guarantee shall remain in full effect until (i) the Securities have been paid in full or (ii) 10 years after the Issue Date (and for 10 years thereafter on a rolling basis). Ranking: Subordinated, pari passu to Guarantor’s existing THB Subordinated Perpetual Capital Securities and Preference Shares, senior only to Ordinary Shares. First reset date: Year 5.25 (12/10/30) and Year 10 (9/10/35). First par call date: Year 5 (9/10/30), Year 9.5 (3/10/35). Distribution Step-up: PNC5.25: 25bps from Year 10.25; additional 75bps from Year 25.25; PNC10: 25bps from Year 10; additional 75bps from Year 30. Issuer call option: PNC5.25: Callable at par on any date during three months prior to, and including, First Reset Date and any IPD thereafter; PNC10: Callable at par on any date during six months prior to, and including, First Reset Date and any IPD thereafter. Pricing 9/3. Settle 9/10 (T+5). 

VIA BofA/Citi (B&D)/HSBC/JPM/Miz/StanChart as JLMs.

Announced with benchmark size, we heard initial thoughts as PerpNC5.25: 7.00% area, PerpNC10: 7.625% area.

Guidance came in a PerpNC5.25: 6.50%#, PerpNC10: 7.125%#.

Ultimately, a $1.1bn deal priced as follows:

$600m (PNC5.25), 6.50% at 99.962, 6.50%. Back-end: T+281.5 (initial spread).

$500m (PNC10), 7.125% at 100, 7.125%. Back-end: T+291.2 (initial spread).

As for r/v, this is PTTGC’s inaugural Perp issuance therefore CONCESSION N/A.

PTTGC seniors were quoted as follows:

GC Treasury Centre Co (Baa3/BBB-/BBB-)
-PTTGC 2.980% due 03/18/31 T+110bp (G103; $91.26) - $700m pxd MAR 2021
-PTTGC 4.400% due 03/30/32 T+88bp (G123; $96.10) - $1bn pxd MAR 2022
-PTTGC 4.300% due 03/18/51 T+90bp ($80.01) - $550m pxd MAR 2021
-PTTGC 5.200% due 03/30/52 T+89bp ($91.88) - $300m pxd MAR 2022

COMPS AWAY:

Cemex SAB de CV (NR/BBB-/BBB-)
-CEMEX 5.200% due 09/17/30 T+155bp (G154; $100.19) - $1bn oxd SEPT 2020
Cemex SAB de CV (NR/BB/BB)
-CEMEX 7.200% PerpNC 06/10/30 $103.092 (G272; 6.439% YTC) - $1bn pxd 06/04/25 b/e +352.0

Rakuten Group Inc (NR/BB)
-RAKUTN 9.750% due 04/15/29 T+264bp (G272; $110.86) - $2bn pxd APRL 2024
Rakuten Group Inc (NR/B)
-RAKUTN 8.125% PerpNC 12/15/29 $102.012 (G387; 7.561% YTC) - $550m pxd DEC 2024 b/e 425.0

MTR Corp CI Ltd (A2/A)
-MTRC 4.875% PerpNC 09/24/30 $101.051 (G90; 4.639% YTC) - $1.5bn pxd 06/16/25 b/e +86.0
-MTRC 5.625% PerpNC 09/24/35 $102.544 (G102; 5.295% YTC) - $1.5bn pxd 06/16/25 b/e +145.7

FINAL BOOKS:

$600m PerpNC5.25 - $3.000bn (5.00x) - PEAK $4.050bn

$500m PerpNC10 - $3.000bn (6.00x) - PEAK $4.050bn

[PECO ENERGY] 

PECO Energy Co “EXC” (Aa3/A n/s) US$1.05bn SEC registered 2-part first mortgage bonds (10y FXD due 9/15/35 and 30y FXD due 9/15/55). MWC then 3mos par call on 10y and 6mos on 30y. Denoms: 2,000 x 1,000. Sale into Canada: Yes - Exemption. UOP: To refinance the $350 million 3.15% bonds due 2025, repay outstanding commercial paper, and for general corporate purposes. Pricing 9/3. Settle 9/10 (T+5). CUSIP: 10y: 693304BH9, 30y: 693304BJ5. ISIN: 10y: US693304BH96, 30y: US693304BJ52. 

VIA BNY/Citi/PNC/Scotia/USB (B&D) joint active books.

Announced with benchmark size, we heard initial thoughts as 10y T+95 area, 30y T+105 area.

Guidance came in at 10y T+68#, 30y T+75#.

Ultimately, a $1.05bn deal priced as follows:

$525m 4.875% 9/15/35 99.811 4.899% T+68. MW+12.5.

$525m 5.650% 9/15/55 99.999 5.650% T+75. MW+15.

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

-EXC 4.900% due 06/15/33 T+42bp (G66; $101.57) - $575m pxd JUN 2023
-EXC 5.250% due 09/15/54 T+76bp ($94.05) - $575m pxd SEPT 2024

*** 30yr: Sept ‘54 T+76, add 1bp for curve gets f/v to T+77bp. At the T+75bp pricing level, 30yr CONCESSION IS NEG 2BP.

*** 10yr: 30y f/v at T+77, take away 10bp for IPT curve = 67bp.

*** 10yr: Jun ‘33 G66, add 3bp for ‘33/’35 curve = 69bp.

Going midpoint call f/v at T+68bp. At the T+68bp pricing level, 10yr CONCESSION IS FLAT.

COMPS AWAY:

Commonwealth Edison Co (A1/A)
-EXC 5.300% due 06/01/34 T+60bp (G75; $103.39) - $400m pxd MAY 2024
-EXC 5.950% due 06/01/55 T+82bp ($103.37) - $725m pxd 05/12/25 +105

Potomac Electric Power (A2/A)
-EXC 5.200% due 03/15/34 T+61bp (G78; $102.57) - $375m pxd FEB 2024
-EXC 5.500% due 03/15/54 T+83bp ($96.59) - $300m pxd FEB 2024

Baltimore Gas & Electric (A3/A)
-EXC 5.450% due 06/01/35 T+81bp (G86; $103.18) - $650m pxd 05/13/25 +98
-EXC 5.650 due 06/01/54 T+80bp ($99.36) - $400m pxd JUN 2024

FINAL BOOK:

$525m 10yr - $2.100bn (4.00x) - PEAK $3.650bn

$525m 30yr - $2.000bn (3.81x) - PEAK $4.650bn

[SUZANO]

Suzano Netherlands B.V. (Guarantor: Suzano S.A.) exp. Baa3/BBB-/BBB- SEC-registered USD benchmark sr unsecured long 10-year notes due 01/15/2036. Optional Redemption: Make Whole Call; 3mo Par Call; Tax Call. Denoms: $1k x $1k. Governing Law: New York. Sales to Canada: Yes, via exemption. Listing: New York.

Use of Proceeds: the net proceeds will be used to repurchase the 2026 and 2027 Notes pursuant to the Tender Offers, subject to the terms and conditions thereof, and pursuant to a subsequent make-whole redemption of such Notes, subject to market conditions. ISINs / CUSIPs: US86960YAA01 / 86960YAA0

Pricing: 09/03. Settle: 09/10 (T+5)

VIA BofA/BNPP/Itaú/JPM (B&D)/MIZ/Rabo as global coordinators, and CACIB/GS/HSBC/ MUFG/SAFRA/Santander/Scotiabank/SMBC/UBS as joint bookrunners.
Announced as a benchmark size, we heard initial price thoughts as T+180bp area.

Guidance came in at T+150bp (+/-5bp).

A $1bn deal was launched at T+145bp.

Ultimately a $1bn was priced as follows:

$1bn 5.500% 01/15/36 @ 98.714 to yld 5.667% T+145bp. MW+25

As for R/V, this clearly repriced the issuer’s curve. SUZANO 3.125% were at a price of 88.40 this morning, a G-spread of 145bp. The new issue came at the same spread, so the NIC is negative whatever the curve between 6.4y remaining on the 2032s and the new long 10y. We heard estimates for the curve differential of between 7bp-10bp, so taking the mid-point, the NIC IS NEG 8BP.

Further evidence that this repriced the issuer’s curve came with the 2032s trading up to a bid price of 88.95.

FINAL BOOKS:

$1bn L10yr - $3.600bn (3.60x) - PEAK $5.000bn

[SOUTHERN CO GAS CAPITAL] 

Southern Co Gas Capital Corp “SO” (Baa1/A-/BBB+ s/s/s) US$850m SEC registered 2-part sr notes (3y FXD due 9/15/28 and 10y FXD due 9/15/35). MWC then 1mo par call on 3y and 6mos on 10y). Guarantor: Southern Co Gas. Denoms: 2,000 x 1,000. Sale into Canada: Yes - Exemption. Sale into HK/China: No – All Solicitations Prohibited into HK and Mainland China. UOP: To repay all or a portion of the Issuer’s commercial paper borrowings. Any remaining net proceeds will be used for other general corporate purposes, which may include investment by Southern Co Gas in its subsidiaries. Pricing 9/3. Settle 9/8 (T+3). CUSIP: 3y: 8426EPAJ7, 10y: 8426EPAK4. ISIN: 3y: US8426EPAJ78, 10y: US8426EPAK42.

VIA BMO/MUFG (B&D)/Sant/USB joint active books.

Announced with benchmark size, we heard initial thoughts as 3y T+80 area, 10y T+120 area.

Guidance came in at 3y T+52#, 10y T+93#.

Ultimately, a $850m deal priced as follows:

$425m 4.05% 9/15/28 99.889 4.089% T+52. MW+10.

$425m 5.10% 9/15/35 99.743 5.133% T+93. MW+15.

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

-SO 4.950% due 09/15/34 T+82bp (G90; $99.48) - $450m pxd SEPT 2024

*** 10yr: Sept ‘34 G90, add 2bp for ‘34/’35 curve gets f/v to T+92bp. At the T+93bp pricing level, 10yr CONCESSION IS 1BP.

*** 3yr: 10y f/v  at T+92, take away 40bp for IPT curve gets f/v to T+52bp. At the T+52bp pricing level, 3yr CONCESSION IS FLAT.

Southern Co (Baa1/BBB+/BBB+)
-SO 4.850% due 06/15/28 T+50bp (G49; $101.89) - $750m pxd MAY 2023
-SO 5.500% due 03/15/29 T+46bp (G55; $104.19) - $1bn pxd SEPT 2023
-SO 4.850% due 03/15/35 T+87bp (G91; $98.19) - $750m pxd SEPT 2024

Alabama Power Co (A1/A/A+)
-SO 4.300% due 03/15/31 T+60bp (G53; $100.05) - $500m pxd 09/02/25 +60

Centerpoint Energy Resources Corp (A3/BBB+/A-)
-CNP 5.250% due 03/01/28 T+50bp (G48; $102.65) - $900m pxd FEB 2023
-CNP 5.400% due 07/01/34 T+87bp (G100; $102.16) - $400m pxd JUN 2024

Southwest Gas Corp (Baa1/BBB/A-)
-SWX 5.450% due 03/23/28 T+62bp (G60; $102.90) - $300m pxd MAR 2023
-SWX 4.050% due 03/15/32 T+66bp (G101; $95.43) - $600m pxd MAR 2022

FINAL BOOKS:

$425m 3yr - $2.600bn (6.12x) - PEAK $3.300bn

$425m 10yr - $2.200bn (5.18x) - PEAK $3.000bn

[NORDEA BANK]

Nordea Bank Abp “NDAFH” exp issue ratings BBB/BBB+ by S&P/Fitch (issuer ratings Aa3/AA-/AA- (p/s/s)), US$850m 144A/Reg S fixed rate reset PerpNC Nov 2033 Additional Tier 1 Conversion Notes. First Reset Date: 11/10/33. Interest: Fixed rate of per cent per annum until November 10, 2033 (“First Reset Date”), reset on the First Reset Date and each date which falls a multiple of 5 years thereafter to the sum of the prevailing 5-year CMT Rate (H15T5Y Index) plus a margin of per cent per annum, payable semi-annually in arrear on each Interest Payment Date, subject to Interest Cancellation. Interest payment dates: November 10 and May 10 every year, commencing on November 10, 2025 subject to Interest Cancellation. If the relevant Interest Payment Date is not a Business Day, the interest is payable on the following Business Day. UOP: general banking and other corporate purposes. Pricing 9/3. Settle 9/10 (T+5). 

VIA BNP/GS/HSBC/JPM/Nordea Bank/UBS joint active books.

Announced with benchmark size, we heard initial thoughts as 7.25% area.

Went straight to launch at $850m PerpNC-Nov 2033 at 6.75%.

Ultimately, a $850m deal priced as follows:

$850, 6.75% at 100.00. Back-end reset: T+272.3.

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

-NDAFH 6.300% PerpNC 09/25/31 $99.47 (G255; 6.41% YTC) - $800m pxd SEPT 2024 b/e 266.0

*** NC ‘31 6.41%, add 20bp for ‘31/’33 curve = 6.625%.

b/e differential not significant to adjust for, call f/v at 6.625%. At the 6.75% pricing level, CONCESSION IS 12.5BP.

COMPS AWAY:

Danske Bank A/S (NR/BBB-/BBB)
-DANBNK 7.000% PerpNC 02/19/30 $102.45 (G266; 6.36% YTC) - $500m pxd FEB 2025 b/e +259.9

Skandinaviska Enskilda Banken AB (Baa3/NR/BBB+
-SEB 6.750% PerpNC 11/04/31 $101.48 (G259; 6.45% YTC) - $500m pxd OCT 2024 b/e 312.7

Swedbank AB (Baa3/BBB-/BBB+)
-SWEDA 7.750% PerpNC 03/17/30 $105.82 (G256; 6.26% YTC) - $650m pxd FEB 2024 b/e +365.7

Bank of America Corp (Baa2/BBB-/BBB+)
-BAC 6.250% PerpNC 07/26/30 $99.87 (G259; 6.28% YTC) - $2.5bn pxd JUL 2025 b/e +235.1

Citigroup Inc (Ba1/BB+/BBB-)
-C 6.875% PerpNC 08/15/30 $101.51 (G282; 6.51% YTC) - $2.7bn pxd 07/16/25 b/e +289.0

Royal Bank of Canada (Baa2/BBB/BBB+)
-RY 6.750% due 08/24/85 nc 08/24/30 $101.44 (G272; 6.41% YTC) - $1.25bn pxd 06/04/25 b/e +281.5

FINAL BOOK:

$850m PerpNC8 AT1 - $5.100bn (6.00x) - PEAK $7.300bn

[PACIFIC LIFE INSURANCE CO] 

Pacific Life Insurance Co (PACLIF) exp A2/A/A (s/s/s) US$850m 144A/Reg S no reg rights 30y surplus notes due 9/15/55. MWC then 6mos par call. Tax event at par (within 90 days of occurrence). Denoms: 2,000 0x 1,000. Sale into Canada: Yes - Exemption. UOP: gcp. Marketing: https://dealroadshow.com Passcode: PACLIF25. Pricing 9/3. Settle 9/10 (T+5). 144A CUSIP: 69448FAB7. 144A ISIN: US69448FAB76.

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

Announced with benchmark size, we heard initial thoughts as T+135a.

Guidance came in at 105#.

Ultimately a $750m deal priced as follows:

$750m 5.95% 9/15/55 99.985 5.951% T+105.

Can u get to NIC using the 67nc47? Or any comps below?

As for r/v, outstanding PACLIF surplus notes were quoted as follows:

- PACLIF 4.300% Surplus due 10/24/67 (nc 47) T+127bp ($78.13) - $750m pxd OCT 2017

This bond is relatively illiquid - and, a 50nc30 issued in 2017 trading at a low $ price. So three strikes on using this direct as a comp. 

The other option was stepping up from the NWMLIC surplus note issued in May 2025 (see below). Some felt you could argue a negative NIC stepping up from the Aa3/AA-/AA rated NWMLIC.  But, there were apparently differing views on what the credit differential was worth. 

Bottom line, we’re going CONCESSION N/A on this one. 

Comps away:

New York Life Insurance (Aa3/AA-/AA)
- NYLIFE 3.750% Surplus due 05/15/50 T+92bp ($73.08) - $1.25bn pxd APR 2020

Northwestern Mutual Life Insurance (Aa3/AA-/AA)
- NWMLIC 6.170% Surplus due 05/29/55 T+93bp ($104.77) - $1.00bn pxd 5/21/25 +108

Teachers Insurance & Annuity (Aa3/AA-/AA)
-TIAAGL 3.300% Surplus due 05/15/50 T+98bp ($66.63) - $1.25bn pxd May 2020

Guardian Life Insurance (Aa3/AA-/AA-)
- GUARDN 3.700% Surplus due 01/22/70 T+97bp ($65.87) - $300m pxd Jan 2020

Mass Mutual Life Insurane Co (A2/AA-/AA-)
- MASSMU 5.672% Surplus due 12/01/52 T+108bp ($95.91) - $500m pxd NOV 2022

Western and Southern Life Insurance Co (A2/A/A+)
- WSFIN 3.750% Surplus due 04/28/61 T+113bp ($66.77) - $500m pxd APR 2021

Mutual of Omaha Insurance Co (A3/A-/A-)
- MUTOMA 6.144% Surplus due 01/16/64 T+126bp ($99.85) - $300m pxd Jan 2024

FINAL BOOK:

$750m 30yr Surplus Note - $2.20bn (2.93x) - PEAK $4.300BN 

[F&G GLOBAL] 

F&G Global Funding (FG) exp NR/A-/A- US$800m 144A/Reg S 3y fixed and/or floating FA-backed 2-pt due 9/8/28. FA Provider: Fidelity & Guaranty Life Insurance Company. Denoms: 2,000 x 1,000. Sales into Canada: Yes - Exemption. UOP: to purchase a Funding Agreement from Fidelity & Guaranty Life Insurance Company. Marketing: https://dealroadshow.com | Passcode: FG2025. Pricing 9/3. Settle 9/8 (T+3). 144A CUSIP FXD/FRN: 30321L2K7/30321L2L5. 144A ISIN FXD/FRN: US30321L2K71/US30321L2L54. 

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

Announced with benchmark size, we heard initial thoughts as T+130-35 / Seqv.

Guidance came in at T+108#/S+132.5#

Ultimately, a $800m deal priced as follows:

$300m 9/8/28 FRN at SOFR+132.5, at 100.

$500m 4.65% 9/8/28 99.981 4.657% T+108.

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

FG 5.875% due 06/10/27 T+71bp (G67; $102.63) - $600m pxd 6/5/24 +137.5
FG 5.875% due 01/16/30 T+130bp (G134; $103.2) - $350 pxd 1/13/25 +130

Outstandings don’t trade much, so the focus was on comps away. 

Similarly-rated American National Global Funding (A/A) was considered the best comp away:

ANGINC 5.250% due 06/03/30 T+108bp (G109; $101.8) - $400m pxd 5/27/25 +125

Pointing to ANGINC at G109, FG’s T+108bp landing level was considered a FLAT CONCESSION VS ANGINC.

Other comps away:

Principal Life Global Funding II (A1/A+)
- PFG 4.250% due 08/18/28 T+60bp (G60; $100.1) - $400m pxd 8/11/25 +55
- PFG 4.950% due 11/27/29 T+72bp (G76; $102.9) - $500m pxd NOV 2024

Corebridge Global Funding (A2/A+)
- CRBG 4.250% due 08/21/28 T+57bp (G57; $100.2) - $500m pxd 8/18/25 +58
- CRBG 4.850% due 06/06/30 T+76bp (G77; $101.5) - $700m pxd 6/03/25 +85

FINAL BOOKS:

$300m 3yr FRN - $600m (2.0x) – PEAK $700M

$500m 3yr FXD - $2.0bn (4.0x) – PEAK $2.25BN 

[BLACKSTONE PRIVATE CREDIT FUND] 

Blackstone Private Credit Fund “BCRED” (Baa2/BBB-/BBBH) (s/p/s) US$500m SEC registered 5y FXD sr notes due 9/10/30. MWC then 1mo par call. First pay: 3/10/26. Denoms: 2,000 x 1,000. Sale into Canada: Yes - Exemption. UOP: gcp. Pricing 9/3. Settle 9/10 (T+5). CUSIP: 09261HBY2. ISIN: US09261HBY27.

VIA  Barc/Citi/GS (B&D)/RBC/WFS joint active books.

Announced as a benchmark, we heard initial price thoughts as T+185 area.

Guidance came in at 160#.

Ultimately, a $500m deal priced as follows:

$500m 5.05% 9/10/30 98.953 5.291% T+160. MW+25.

 As for r/v, outstanding BCREDwas quoted as follows:

-BCRED 5.600% due 11/22/29 T+145bp (G150; $101.47) - $398M exch. 04/21/25
-BCRED 5.250% due 04/01/30 T+150bp (G152; $100) - $397M exch. 04/21/25
-BCRED 6.000% due 01/29/32 T+160bp (G169; $102.16) - $1B pxd Jan 2025
-BCRED 6.000% due 11/22/34 T+173bp (G180; $99.89) - $795M exch. 04/21/25 

** Outstanding Apr 30s G152; plus 3bp for curve, f/v is T+155bp. At the T+160bp pricing level, CONCESSION IS 5BP.

Comps away:

Blackstone Secured Lending (Baa2/BBB-/BBB)
-BXSL 5.350% due 04/13/28 T+120bp (G119; $101.22) - $700M pxd Oct 2024
-BXSL 5.300% due 06/30/30 T+145bp (G146; $100.42) - $500M pxd Feb 2025

Ares Capital Corp (Baa2/BBB/BBB)
-ARCC 5.875% due 03/01/29 T+128bp (G137; $102.62) - $1B pxd Jan 2024
-ARCC 5.500% due 09/01/30 T+153bp (G153; $100.95) - $750M pxd 05/27/25 +175
-ARCC 5.100% due 01/15/31 T+161bp (G157; $98.86) - $650M pxd 09/02/25 +160
-ARCC 5.800% due 03/08/32 T+165bp (G173; $100.88) - $1B pxd Jan 2025

** ARCC Sep 30s G153; slight differential on the S&P rating between ARCC and BCRED but should be relatively flat; nics is about mid single digits at the T+160bp landing level.

FINAL BOOKS:

$500m 5yr - $1.300bn (2.60x) - PEAK $2.100bn

[BANK OF NEW YORK MELLON CORP] 

The Bank of New York Mellon Corp (BK) exp Baa1/BBB/BBB+/A (s/s/s/s) by Moody's/S&P/Fitch/DBRS US$500m $1,000 par fixed rate reset non-cumulative PerpNC5 pfd, Series L. Dividend rate: (i) From September 10, 2025 to, but excluding, December 20, 2030, at a fixed rate of % per annum and (ii) from and including December 20, 2030, during each five-year Reset Period, at a rate per annum equal to the five-year U.S. Treasury rate as of the most recent Reset Dividend Determination Date, plus %. (Non-cumulative). Div payment dates: The 20th day of June and December of each year, commencing on December 20, 2025. Optional Redemption: Redeemable at par (i) in whole or in part, from time to time, on any dividend payment date on or after December 20, 2030 (ii) in whole but not in part at any time within 90 days following a Regulatory Capital Treatment Event. Listing: none. DRD/QDI: Yes. Sale into Canada: Yes - Exemption. UOP: General Corporate Purposes, which may include, but is not limited to, repurchases or redemptions of the Issuer’s preferred stock, including, but not limited to, some or all of the Issuer’s outstanding Series H Preferred Stock and related depositary shares. Pricing 9/3. Settle 9/10 (T+5). CUSIP: 064058AR1. ISIN: US064058AR14. 

VIA Barc/BofA (B&D)/BNY/Citi/JPM joint books.

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

-BK 6.300% Perp (nc 3/20/30) $102.24 (5.733% YTW; G200) – b/e T+229.7 - $500m pxd 3/3/25

Adding in curve call f/v 5.75%

1) 229.7 b/e minus 200 G = 30 X 0.2 = 6

2) New spread b/e T+227.1 essentially flat to 229.7 back end  = 0

Back end worth 0-6bp (3bp mid).  5.75% + 3bp = 5.78%

So if you use the directs – NIC is 17bp.

However, we were told the outstanding BK is very technical.

The other way market players looked at this deal was vs the recent BofA perp.

Bank of America (Baa2/BBB-/BBB+)
  - BAC 6.250% Perp (nc 7/26/30) $100.10 (6.273% YTC; G254) – b/e T+235.1 - $2.5bn pxd 7/21/25

BK trades around 8bp inside BAC in seniors – call it 12.5-25bp inside in perps – so this gives you a completely different answer – f/v at 6.023%-6.148%.  

So bottom line, this one will be left as CONCESSION N/A.

One notable on today’s deal, this is the first time we’ve seen a bank Perp come in with a coupon below 6% since January 2022.

** table**

Comps away:

State Street Corp (Baa1/BBB/BBB+)
- STT 6.450% Perp (nc 9/15/30) $101.65 (6.113% YTC; G238) – b/e T+213.5 - $750m pxd 1/3/25
- STT 6.700% Perp (nc 9/15/29) $103.54 (5.626% YTC; G190) – b/e T+261.3 - $850m pxd JUL 2024

JPMorgan Chase & Co (Baa2/BBB/BBB+)
- JPM 6.500% Perp (nc 4/1/30) $102.43 (5.933% YTC; G220) – b/e T+215.2 - $3bn pxd 1/28/25

Wells Fargo & Co (Baa2/BB+/BBB)
- WFC 6.850% Perp (nc 9/15/29)  $104.70 (5.579% YTC; G194) – b/e T+276.7 - $2bn pxd JUL 2024

Mitsubishi UFJ Fin Group (Baa3/BB+/BB+)
- MUFG 6.350% Perp (nc 1/15/36) $100.11 (6.336% YTC; G207) – b/e T+207.0 - $1bn pxd 9/2/25

Goldman Sachs Group (Ba1/BB+/BBB-)
- GS 6.850% Perp (nc 2/10/30) $102.76 (6.129% YTC; G240) – b/e T+246.1 - $1.9bn pxd 1/16/25

Citigroup Inc (Ba1/BB+/BBB-)
- C 6.875% Perp (nc 8/15/30) $101.58 (6.551% YTC; G283) – b/e T+289.0 - $2.70bn pxd 7/16/25

FINAL BOOK:

$500m PerpNC5 - $2.670bn (5.34x) – PEAK $2.900BN 

[COLBUN] 

Colbún SA, exp Baa2/BBB/BBB+, 144A/Reg S US$500m green 10-yr bullet sr notes due 09/11/2035. MWC 3mo par call. Sustainability structuring agent Santander. Use of proceeds: refinance existing debt, including 2027 Notes and for general corporate purposes. Colbún intends to allocate an amount equal to the net proceeds from the offering of the Notes (the “Net Proceeds”) to finance and/or refinance, in whole or in part, Eligible Green Projects. Governing law: New York. Sales to Canada: Yes, via exemption. Denoms: $200k x $1k. CUSIP: 192714AF0 / P2867KAM8. ISIN: US192714AF05 / USP2867KAM82.

Marketing: Investor Presentation: URL: https://dealroadshow.com Entry Code: colbun2025. Direct Link: https://dealroadshow.com/e/colbun2025

Price 09/03. Settle 09/11.

VIA BBVA (B&D)/BofA/JPM/Santander/SMBC as global coordinators and MIZ/MUFG as joint bookrunners.

Announced as a green benchmark, we heard initial price thoughts as T+150bp area.

Went straight to launch at $500m @ T+120bp.

Ultimately a $500m deal priced as folls:

$500m 5.375% @ 99.694 to yld 5.415% T+120bp. MW+20

As for R/V, the key comp was Colbún’s outstanding 3.15% bond due 01/19/2032 (6.4y remaining), spotted at a price of $90 and a G-spread of 110bp (yield of 5.00%).

Accounting for curve extension, fair value was around 125bp over. Therefore CONCESSION IS NEG 5BP.

At this level, it was just 45bp over the Chilean sovereign curve. Several investors agreed that pricing was tight, and book attrition was high, but some said they were happy to remain in the book because of the rarity of the name, and the quality of the credit. Previously Colbún had not issued since 10/14/2021.

FINAL BOOKS: 

$500m 10yr Green - $2.000bn (4.00x) - PEAK $2.900bn

[NEW ENGLAND POWER CO] 

New England Power Co “NGGLN” (A3/BBB+/A- (s/s/s)) US$350m (no grow) 144A / Reg S (w/o reg rights) 30y sr notes due 9/8/55. MWC then 6 mos par call. Denoms: 2,000 x 1,000. Sale into Canada: Yes - Exemption. UOP: GCP. Pricing 9/3. Settle 9/8 (T+3). 

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

Announced as $350m (WNG) we heard initial price thoughts as T+130 area.

Went straight to launch at $350m 30y at T+95.

Ultimately, a $350m deal priced as follows:

$350m 5.848% 9/8/55 100.00 5.848% T+95. MW+15.

 As for r/v, outstanding NGGLN (New England) was quoted as follows:

-NGGLN 5.936% due 11/25/52 T+101bp ($99.587) - $300M pxd Nov 2022

**Outstanding Nov 52s T101 (quotes were anywhere between 100 and 102, so taking the mid-point there); call f/v flat to that at T+101bp. (neg 6bp nic)

Also could look at f/v as 10bp inside Niagara Mohawk:

Niagara Mohawk Power (Baa1/BBB+/N/A)
-NGGLN 4.647% due 10/03/30 T+84bp (G84; $100.296) - $500M pxd 06/30/25 +85
-NGGLN 5.290% due 01/17/34 T+89bp (G107; $100.832) - $500M pxd Jan 2024
-NGGLN 5.664% due 01/17/54 T+106bp ($95.126) - $700M pxd Jan 2024
-NGGLN 5.996% due 07/03/55 T+113bp ($98.552) - $750M pxd 06/30/25 +120

** Niagara Mohawk Jul 55s T113 minus 10bp credit differential= T+103bp f/v. (neg 8bp nic)

Nic is neg 6 vs direct and neg 8 vs Niagara Mowak. Mid-point CONCESSION IS NEG 7BP. 

Other NGGLN comps:

Boston Gas Company (Baa1/BBB+/N/A)
-NGGLN 5.843% due 01/10/35 T+91bp (G100; $104.738) - $500M pxd Jan 2025
-NGGLN 6.119% due 07/20/53 T+124bp ($98.885) - $400M pxd Jul 2023

National Grid Plc (Baa2/BBB/BBB)
-NGGLN 5.418% due 01/11/34 T+76bp (G95; $102.534) - $750M pxd Jan 2024

Other comps away:

AEP Transmission Co Llc (A2/BBB+/A)
-AEP 5.375% due 06/15/35 T+81bp (G85; $102.174) - $425M pxd 05/12/25 +100

NY State Electric & Gas (Baa1/A-/A-)
-AGR 5.050% due 08/15/35 T+90bp (G90; $99.047) - $300M pxd 08/04/25 +88

Firstenergy Transmission (Baa2/BBB+/BBB+)
-FE 5.000% due 01/15/35 T+88bp (G94; $98.868) - $400M pxd Dec 2024

Nstar Electric Co (A2/A-/A)
-ES 5.200% due 03/01/35 T+77bp (G84; $101.153) - $400M pxd Feb 2025

Arizona Public Service (Baa1/BBB+/A-)
-PNW 5.900% due 08/15/55 T+100bp ($99.122) - $700M pxd 08/12/25 +105

Interstate Power & Light (Baa1/BBB+/N/A)
-LNT 5.600% due 06/29/35 T+93bp (G97; $102.949) - $600M pxd 05/13/25 +115

Virginia Elec & Power Co (A3/BBB+/A)
-D 5.150% due 03/15/35 T+80bp (G87; $100.567) - $625M pxd Mar 2025
-D 5.650% due 03/15/55 T+87bp ($97.421) - $625M pxd Mar 2025

Indianapolis Pwr & Light (A2/A-/A)
-AES 5.050% due 08/15/35 T+89bp (G89; $99.11) - $350M pxd 08/06/25 +85

FINAL BOOKS:

$350m 30yr - $2.900bn (8.29x) - PEAK $4.200bn

[RETAIL/SSA priced]

Asian Infrastructure Investment Bank (AIIB) Aaa/AAA/AAA (s/s/s) US$2bn (no grow) SEC Registered 3y Global Sustainable Development Bond due 9/15/28. HSBC/MS/RBC/TD joint leads. Coupon: Fixed, semi-annual, 30/360 (Long First). Listing: The notes are expected to be listed on the Main Market of the London Stock Exchange. Denoms: US$1k + US$1k. Docs: Issuer’s SEC Registration Statement. Pricing 9/3. Settle 9/10 (T+5).

IPTs: SOFR MS+34 area (currently equiv. to CT3+6.8 area).
GUIDANCE: SOFR MS+32 area. IOIs >3.4bn (including $50m JLM).
LAUNCHED: US$2bn 3y at SOFR MS+31. Books >5.4bn (including $50m JLM). EMEA/Asia books to close at 11.00 UK / 12.00 CET // US books to close 08.30 NY / 13.30 UK

PRICED: $2bn 3.625% 9/15/28 99.934 3.648% SOFR MS+31 (T+3.50).

[NEW MANDATES & MARKETING]

-Brookfield Asset Management Ltd. (the “Company”; Bloomberg Debt Ticker: BAMCN) has requested Wells Fargo Securities and Morgan Stanley to arrange a series of fixed income investor calls for today, Wednesday, September 3, 2025. An electronic investor presentation will be made available for the calls. Presentation details will be made available via Deal Roadshow. An SEC-registered, senior unsecured notes offering may follow, subject to market conditions. 

Wells Fargo Securities is coordinating logistics.

The Company will be represented by
Hadley Peer-Marshall – Chief Financial Officer
Kudzi Samushonga – Vice President, Capital Markets & Treasury
Jason Fooks – Managing Director, Investor Relations 

About the Company:

Brookfield Asset Management Ltd. is a leading global alternative asset manager, headquartered in New York, with over $1 trillion of assets under management across infrastructure, renewable power and transition, private equity, real estate, and credit.

-Goldman Sachs BDC, Inc. (“GSBD” or the “Company”), rated Baa3 (Stable) by Moody’s / BBB- (Stable) by Fitch, has asked BofA Securities, HSBC, MUFG, SMBC Nikko, and Truist Securities to arrange a series of fixed income investor calls on Wednesday, September 3rd, 2025. An electronic presentation will be made available during the calls. An offering of SEC-registered senior unsecured notes may follow, subject to market conditions.

BofA Securities is coordinating logistics.

Company Participants:

David Miller- Co-CEO

Vivek Bantwal- Co-CEO and Global Co-Head of Private Credit

Tucker Greene- Chief Operating Officer and President

Stanley Matuszewski- Chief Financial Officer and Treasurer

Steven Colombo- Managing Director, Americas Head of Fund Finance & DCM

Doug Levine- Vice President, Fund Finance & DCM

Austin Neri- Vice President, Alternatives Capital Formation

[SSA]

Korea Housing Finance Corporation (“KHFC”), rated Aa2 (Stable) by Moody’s and AA (Stable) by S&P, has mandated BofA Securities, Citigroup, HSBC, J.P. Morgan and Mizuho to arrange global investor calls on September 4, 2025. A USD-denominated Rule 144A/3c7/Reg S senior unsecured bond offering with an expected tenor of 3- to 5-year in FXD or FRN format may follow, subject to market conditions.

FCA / ICMA stabilization applies.

aj@creditflowresearch.com  

jdizuwra@creditflowresearch.com 

sarah@creditflowresearch.com