Commentary & Deal Flow

   CFR CREDIT CLOSE: This Week Ranks High in 2025; Top Ten All-Time

   Unless an issuer opts to go after employment on Friday, today’s $13.700bn / 11 deal total (thanks for $6.5bn volume boost today Citi!) leaves Labor Day Week 2025 at $69.100bn / 54 deals.  

   Here’s how this stacks up against 2025 and All-Time:

    For 2025, this is the Largest Deal and Tranche Week, and ranks No. 2 for Volume (the Mars $26bn 8-part helped put the Wk Ending 3/7/25 at No. 1)

As for All-Time Largest Weeks:

 - The best showing was the All-Time Largest Deal Week List, with the week’s 54 deals ranking No. 4 (bested by Labor Days Weeks 2021 and 2024, and one of the major COVID weeks).   

As for volume, this week just makes the top 10 on the All-Time Largest Volume Week List:

 This week ranks #6 on the 2019-2025 Largest Tranche Week List:

Notables today:

After pricing with a pretty negative nic, HYUELE's 3y and 5y tranches ranked high for BBB low coupons.

The 5y takes the top spot ytd:

The 3y tranche ties for first ytd and also ranks looking back through 2023:

Sticking with BBB low coupons, BRX today came in with the second lowest BBB coupon on a 7yr ytd with AVOL not too far behind:

Here's today's rundown:

[CITIGROUP] 

Citigroup Inc (C) exp A3/BBB+/A (s/s/s) US$6.5bn SEC registered 3-part sr notes (6nc5 fixed to float and/or FRN due 9/11/31 and 11nc10 fixed to float due 9/11/36). Citi (B&D) joint active books. Optional redemption: 6nc5 FTF: Make Whole Call, Par Call: 1 month(s) prior to maturity, Standard Call: The Issuer may redeem the security on Sep 11, 2030 @ 100.000%, Tax Changes Call; 6nc5 FRN: month(s) Par Call: 1 month(s) prior to maturity, Standard Call: The Issuer may redeem the security on Sep 11, 2030 @ 100.000%, Tax Changes Call; 11nc10: Make Whole Call, Par Call: 1 month(s) prior to maturity, Standard Call: The Issuer may redeem the security on Sep 11, 2035 @ 100.000%, Tax Changes Call. Day Count: FTF: 30/360 during the fixed rate period. Actual/360 during the floating rate period; Floating: Actual/360. First pay: FTF: 3/11/26; FRN: 12/15/25. Denoms: 1,000 x 1,000. UOP: gcp. Pricing 9/4. Settle 9/11 (T+5). CUSIP: 6nc5 FTF: 172967QF1, 6nc5 FRN: 172967QG9, 11nc10: 172967QH7. ISIN: 6nc5 FTF: US172967QF11, 6nc5 FRN: US172967QG93, 11nc10: US172967QH76.

    VIA Citi sole:

    Announced as benchmark, final size came in at $6.500bn with price progression as follows:

    6nc5 FRN – IPT Seqv; LNCH Seqv; PXD $500m 9/11/31 FRN at SOFR+117.1, at 100.
    6nc5 FTF – IPT 115a; LNCH T+85#; PXD $3bn 4.503% 9/11/31 100.00 4.503% T+85. MW+15. Back-end: SOFR+117.1.
    11nc10 FTF – IPT T+130a; LNCH T+100#; PXD $3bn 5.174% 9/11/36 100.00 5.174% T+100. MW+15. Back-end: SOFR+148.8.

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

  C 4.952% due 5/7/31 (nc 30) T+80bp (G82; $102.04) - $2.00bn pxd 5/1/25 +115
  C 5.333% due 03/27/36 (nc 35) T+94bp (G98; $101.55) - $2.25bn pxd 3/20/25 +110

** 11nc10 – Mar 36nc35 G98 + 2bp curve = T+100bp f/v (30 back at 130a IPT).  At the T+100bp pricing level, 11nc10 CONCESSION IS FLAT.
** 6nc5 – May 31nc30 G82) +3bp curve = T+85bp; Or 11nc10 f/v T+100 minus 15 5s/10s curve at IPT = T+85bp.  (30 back at 115a IPT).  At the T+85bp pricing level, 6NC5 CONCESSION IS FLAT. 

FINAL BOOKS:

$500m 6nc5 FRN - $2.400bn (4.80x) 

$3.00bn 6nc5 FTF - $11.800bn (3.93x)

$3.00bn 11nc10 - $15.900bn (5.30x) 

[AVOLON HLDGS] 

Avolon Holdings Funding Ltd “AVOL” (Baa2/BBB-/BBB s/p/s) US$1.25bn 144A/Reg S no reg rights 7y sr notes due 10/15/32. MWC then 2mos par call. 101 CoC. Guarantors: Avolon Holdings Ltd, Park Aerospace Holdings Limited, Avolon Aerospace Leasing Ltd, CIT Aerospace LLC, CIT Group Finance (Ireland) Unlimited Company, CIT Aviation Finance III Ltd, and CIT Aerospace International Unlimited Company. Expected Listing: Euronext Dublin. Sale into Canada: Yes, via Exemption. Denoms: 2,000 x 1,000. UOP: to repurchase debt securities in the Tender Offers and to pay related expenses. In the event that the Tender Offers are not consummated, or the net proceeds from this offering are otherwise in excess of the amount needed to repurchase debt securities in the Tender Offers and to pay related expenses, the company intends to use the remaining proceeds for general corporate purposes, which may include the future repayment of outstanding indebtedness. Pricing 9/4. Settle 9/11 (T+5). 144A CUSIP / ISIN: 05401ABC4 / US05401ABC45. 

VIA BNP/FITB/ING/JPM (B&D)/MUFG joint active books. 

Announced with benchmark size, we heard initial thoughts as T+145 area.

Guidance came in at T+120#.

Ultimately, a $1.25bn deal priced as follows:

$1.25bn 4.95% 10/15/32 99.227 5.080% T+120. MW+20.

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

-AVOL 5.375% due 05/30/30 T+106bp (G108; $102.72) - $850m pxd MAR 2025
-AVOL 4.900% due 10/10/30 T+113bp (G113; $100.51) - $650m pxd 07/07/25 +108

*** Oct ‘30 G113 suggests 5y f/v at 113bp. Also taking into account May ‘30 G108, plus 2bp for curve suggests 5y f/v closer to 110bp. Call new issue 5y f/v at 112bp. Add 10-15bp for 5s/7s curve gets f/v to T+124bp. At the T+120bp pricing level, CONCESSION IS NEG 4BP.

COMPS AWAY:

AerCap Ireland Capital DAC / Global Aviation Trust (Baa1/BBB+/BBB+)
-AER 4.625% due 09/10/29 T+74bp (G79; $100.82) - $1.3bn pxd SEPT 2024
-AER 6.150% due 09/30/30 T+83bp (G83; $107.26) - $850m pxd SEPT 2023
-AER 5.375% due 12/15/31 T+84bp (G93; $103.43) - $750m pxd JAN 2025
-AER 3.400% due 10/29/33 T+88bp (G105; $89.04) - $1.5bn pxd OCT 2021

Aviation Capital Group LLC (Baa2/BBB-)
-ACGCAP 4.800% due 10/24/30 T+117bp (G115; $99.87) - $750m pxd 07/10/25 +107

Aircastle Ltd / Ireland DAC (Baa3/BBB/BBB+)
-AYR 5.000% due 09/15/30 T+114bp (G114; $100.89) - $650m pxd 07/14/25 +117
-AYR 5.750% due 10/01/31 T+125bp (G114; $104.29) - $500m pxd JUL 2024

FINAL BOOK:

$1.25bn 7yr - $2.600bn (2.08x) - PEAK $3.250bn

[SK HYNIX INC] 

SK hynix Inc (HYUELE) exp Baa2/BBB/BBB (p/p/p) US$1.20bn144A/Reg S 2-part sr notes (3y FXD and 5y FXD). Change of Control: At 100% upon Change of Control Triggering Event where (1) (a) SK hynix sells or transfers all or substantially all of the properties or assets of itself and its subsidiaries taken as a whole or (b) SK Square Co., Ltd. and its affiliates cease to own at least 20% of SK hynix and (2) a Rating Event occurs (See Preliminary OC). Terms: SGX Listing, $200k/1k Denoms, New York Law . UOP: general corporate purposes, including repayment of outstanding borrowings. Pricing 9/4. Settle 9/11 (T+5).

VIA Citi (B&D)/CACIB/HSBC/Miz/MS/MUFG joint books.

Announced overnight as benchmark, final size came in at $1.20bn with price progression as follows:

3yr – IPT T+115a; GDNC 73#; PXD $600m 4.25% 9/11/28 99.905 4.284% T+73.
5yr – IPT T+120a; GDNC 80#; PXD $600m 4.375% 9/11/30 99.632 4.458% T+80.

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

- HYUELE 5.500% due 01/16/27 T+82bp (G71; $101.42) - $500m pxd Jan 2024
- HYUELE 5.500% due 01/16/29 T+79bp (G87; $103.24) - $1.0bn pxd Jan 2024

Based on the levels above, we heard Asia desks pegged f/v as follows:

5yr – F/V T+85-90 (87.5).  At the T+80bp pricing level, 5YR CONCESSION IS NEG 7.5BP.

3yr – 5yr f/v T+87.5 minus 5bp 3s/5s curve at IPT puts 3yr f/v at T+82.5. At the T+73bp landing level, 3YR CONCESSION IS NEG 9.5BP.

Comps away:

Micron Technology Inc (Baa3/BBB-/BBB)
- MU 5.375% due 04/15/28 T+58bp (G56; $102.95) - $600m pxd APR 2023
- MU 5.300% due 01/15/31 T+93bp (G90; $103.25) - $1.0bn pxd JAN 2024

Broadcom Inc (Baa1/BBB+/BBB)
- AVGO 4.800% due 04/15/28 T+53bp (G51; $101.70) - $1.10bn pxd 1/6/25 +53
- AVGO 5.050% due 04/15/30 T+64bp (G66; $103.04) - $800m pxd 1/6/25 +63

FINAL BOOK: 

$600m 3yr - $4.00bn (6.67x) - peak $12bn ttl (both tranches)
$600m 5yr - $3.00bn (5.00x) - peak $12bn ttl (both tranches) 

[HPS CORPORATE LENDING] 

HPS Corporate Lending Fund (HLEND) exp Baa3/BBB- (p/s) US$1.1bn 144A/Reg S with reg rights 2-part sr notes (3y FXD due 9/11/28 and 5y FXD due 11/15/30). MWC then 1mo par call (both). 100 CoC. Denoms: 2,000 x 1,000. Sale into Canada: Yes - Exemption. UOP: (1) To make investments in accordance with HLEND’s investment strategy and policies, (2) to reduce borrowings and repay indebtedness incurred under various financing agreements HLEND has entered into and (3) for general corporate purposes. Pricing 9/4. Settle 9/11 (T+5). 144A CUSIP: 3y: 40440VAQ8, 5y: 40440VAS4. 144A ISIN: 3y: US40440VAQ86, 5y: US40440VAS43. 

VIA 3y: BNP/GS/JPM/Scotia/WFS (B&D); 5y: BNP/GS/JPM/Barc/SMBC/WFS (B&D).

Announced as a benchmark, we heard initial price thoughts as 3y T+180 area, 5y T+205 area.

Guidance came in at 3y T+155#, 5y T+183#.

Ultimately, a $1.1bn deal priced as follows:

$600m 4.90% 9/11/28 99.456 5.098% T+155. MW+25.

$500m 5.45% 11/15/30 99.862 5.477% T+183. MW+30.

 As for r/v, outstanding HLEND was quoted as follows:
-HLEND 5.450% due 01/14/28 T+146bp (G147; $100.83) - $750M pxd Feb 2025
-HLEND 6.750% due 01/30/29 T+162bp (G170; $104.41) - $543M pxd Jan 2025
-HLEND 5.850% due 06/05/30 T+179bp (G181; $101.67) - $500M pxd 05/29/25 +195

** 3y - outstanding Jan 28s G147; plus 7bp for curve (using a 20bp 3s/5s curve) = T+154bp f/v. (3y - 1bp nic)

** 5y - outstanding Jun 30s G181 +2bp for curve = T+183bp. (5y - flat)

Blackstone Private Credit Fund (Baa2/BBB-/N/A)
-BCRED 4.950% due 09/26/27 T+110bp (G109; $100.47) - $398M exch. 04/21/25
-BCRED 5.250% due 04/01/30 T+151bp (G153; $100.28) - $397M exch. 04/21/25
-BCRED 5.050% due 09/10/30 T+160bp (G160; $99.06) - $500M pxd 09/03/25 +160

Ares Capital Corp (Baa2/BBB/BBB)
-ARCC 5.950% due 07/15/29 T+129bp (G135; $103.37) - $850M pxd May 2024
-ARCC 5.500% due 09/01/30 T+153bp (G153; $101.3) - $750M pxd 05/27/25 +175
-ARCC 5.100% due 01/15/31 T+160bp (G156; $99.24) - $650M pxd 09/02/25 +160

** 5y - BCRED and ARCC 5y recently priced at +160; plus 20bp for credit differential, HLEND new 5y f/v is T+180bp. (5y - 3bp nic) 

** 3y - 5y f/v T+180bp; minus 25bp 5s/3s curve at IPT = T+155bp f/v. (3y - flat nic)

Going mid-point between direct and vs BCRED and ARCC:

3Y CONCESSION IS FLAT and 5Y CONCESSION IS 2BP.

Ares Strategic Income Fund (N/A/BBB-/BBB-)
-ARESSI 5.700% due 03/15/28 T+164bp (G164; $101.13) - $999M exch. 04/24/25
-ARESSI 5.600% due 02/15/30 T+181bp (G181; $100.46) - $748M exch. 04/24/25 

FINAL BOOKS:

$600m 3yr - $2.000bn (3.33x) - PEAK $2.200bn

$500m 5yr - $1.200bn (2.40x) - PEAK $1.600bn

[BROOKFIELD ASSET MANAGEMENT] 

Brookfield Asset Management Ltd (BAMCN), exp A-/A (s/s) by S&P/Fitch, US$750m SEC registered 30y FXD sr notes due 9/15/55. MWC then 6mos par call. 101 CoC. Covenants: Negative pledge Consolidation, merger, amalgamation and sale of substantially all assets. Denoms: 2,000 x 1,000. First pay: 3/15/26. UOP: gcp. Pricing 9/4. Settle 9/9 (T+3). CUSIP: 112586AB8. ISIN: US112586AB85. 

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

Announced as a benchmark, target size was heard to be $500m ($750m max), and we heard initial price thoughts as T+155 area.

Went straight to launch at $750m 30y at T+120.

Ultimately, a $750m deal priced as follows:

$750m 6.077% 9/15/55 99.998 6.077% T+120. MW+20.

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

-BAMCN 5.795% due 04/24/35 T+111bp (G116; $103) - $750M pxd 04/22/25 +140

**Outstanding Apr 35s G116; plus 2bp for the 5 mos extension, new 10y f/v T+118bp; then add another 10bp for 10s/30s curve = T+128bp. At the T+120bp pricing level, CONCESSION IS NEG 8BP.

Comps away:

Brookfield Finance Inc (A3/A-/A-)
-BNCN 5.330% due 01/15/36 T+118bp (G114; $99) - $650M pxd 08/13/25 +110
-BNCN 5.813% due 03/03/55 T+103bp ($98) - $500M pxd Feb 2025

FINAL BOOKS:

$750m 30yr - $5.300bn (7.07x) - PEAK $5.600bn

[KALLPA GENERACION] 

Kallpa Generación S.A. (KALLPA), exp Baa3/BBB- (Moody's/Fitch), US$700m 144A/Reg S sr unsecured 10 year due 09/11/2035. MWC, 3mo par call, tax call. Use of Proceeds: To (i) fund the Tender Offer and to pay related fees, premiums, accrued interest and expenses and (ii) repay the Short-Term Loan. If, following the consummation of the Tender Offer, any 2027 Notes remain outstanding, Kallpa intends to use remaining net proceeds to redeem such 2027 Notes in accordance with the related indenture. The remainder, if any, will be used for general corporate purposes. Denoms: $200,000 x $1,000. Governing law: New York. Listing: Singapore Stock Exchange. Marketing: www.dealroadshow.com | Code: KALLPA2025. Sales into Canada: Yes - via exemption. Price 09/04. Settle 09/11 (T+5).

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

Announced as a benchmark, we heard initial price thoughts as T+170bp area

Guidance came in at T+145bp area (+/- 5).

Ultimately, the $700m deal was priced as follows:

$700m 5.500% 09/11/2035 @ 99.484 yld 5.568% T+140.

As for R/V, the KALLPA 5.875% 2032s were the clearest comp, spotted pre-announcement between G+132bp – G+135bp. The curve was deemed worth 15bp-20bp, so taking the mid-points we get to fair value for a 10y of 150bp-155bp.

CONCESSION IS NEG 12.5BP.

FINAL BOOKS:

$700m 10yr - $2.300bn (3.29x) - PEAK $2.900bn

[INVERSIONES CMPC] 

Inversiones CMPC S.A. (CMPCCI), instrument ratings Ba1/BB+/BB+ (issuer ratings Baa3/BBB/BBB (s/n/n)), US$600m (no grow) 144A/Reg S 32.25nc7 fixed rate reset Sustainable Subordinated Capital Notes due 12/9/57. Guarantor: Empresas CMPC S.A. First Call Date: September 9, 2032 - three months prior to First Reset Date.

Reset Dates: December 9, 2032 (“First Reset Date”) and each fifth anniversary thereafter.

Interest Step-ups: +25 bps at Year 12.25 (the “First Step-up Date”), +75 bps at Year 27.25 (the “Second Step-up Date”) (100 bps cumulative).

Interest Payment Frequency: Subject to the Issuer’s right to defer interest payments, interest payable semi-annually in arrears. June 9 and December 9 of each year, starting on December 9, 2025.

Interest Deferral: Interest may be deferred on a cumulative and unlimited basis in whole or in part. Deferred interest will accrue and compound during Optional Interest Deferral period at the applicable Interest Rate (“Deferred Interest”). Optional Interest Deferral period may not extend beyond the Maturity Date. Mandatory Payment of Deferred Interest: The entire amount (and not any lesser portion) of any deferred interest in respect of all notes then outstanding shall become due and payable in full by the Issuer on the first occurring Mandatory Settlement Date, and to the extent it does not do so, the Guarantor will be required to make payments in accordance with the Guarantee with respect thereto, if: the Issuer or the Guarantor makes a dividend payment in respect of its share capital in an aggregate amount that exceeds the Minimum Required Dividend; the Issuer or the Guarantor makes any distributions on its Parity Securities, if any; the Issuer, the Guarantor or any of their respective majority-owned subsidiaries repurchases, redeems or otherwise acquires any Parity Securities or any Junior Subordinated Capital of the Issuer or the Guarantor; orthe principal of and interest on the Notes shall have been declared due and payable as the result of an Event of Default with respect to the Notes.

Optional Redemption: Par call for 90-day period leading up to the First Reset Date, and on each interest payment date thereafter, in whole or in part.

Special Early Redemption events as defined in Offering Memorandum (withholding tax/substantial repurchase/rating methodology/accounting/tax deductibility event), in whole but not in part. Special Event Redemption: In the case of a Rating Methodology Event, Tax Deductibility Event or Accounting Event:101% prior to the First Call Date100% on or after the First Call Date. In the case of a Withholding Tax Event or Substantial Repurchase Event at 100%. Substitution or Variation: Upon occurrence of a Rating Methodology Event, Tax Deductibility Event, an Accounting Event or a Withholding Tax Event subject to certain preconditions.

Expected Equity Credit: 50% Equity Credit until year 22.25 for Moody’s 50% Equity Credit until the First Reset Date (year 7.25) for S&P, 50% Equity Credit until year 22.25 for Fitch. Accounting Treatment: Debt (IFRS).

Ranking: Subordinated Capital Notes Unconditionally Guaranteed on a Subordinated Basis.

Denominations: $200,000 x $1,000. Governing Law: State of New York. Clearing: DTC, Euroclear and Clearstream. Sales into Canada: Yes - Exemption.

UOP: CMPC will allocate an amount equal to the net proceeds of the notes to finance or refinance, in whole or in part, eligible green and social projects as defined in CMPC’s 2025 Sustainable Financing Framework. Pending such allocation CMPC intends to repay, in whole or in part, our outstanding debt, and the remainder, if any, for general corporate purposes.

Marketing: Deal Roadshow Investor Login Details: URL: https://dealroadshow.com Entry Code: CMPC2025 Direct Link: https://dealroadshow.com/e/CMPC2025. Pricing 9/4. Settle 9/9 (T+3). 144A CUSIP / ISIN: 46128MAU5 / US46128MAU53.

VIA BofA/JPM/Miz (B&D)/Sant/Scotia as JBRs. BBVA/BNP/BTG Pactual/Citi/Credit Agricole/Itau BBA as passive JBRs. JPM/Santander as sustainable structuring agents.

Announced at $600m WNG, we heard initial price thoughts as Low 7% area.

Guidance came in at 6.75% area (+/- 5).

Ultimately, the $600m deal priced as follows:

$600m 6.70% 12/9/57 100.00 6.704%. Back-end reset: T+283.4. 

As for R/V, the starting point was a hypothetical CMPCCI 7y senior, which average estimates put at T+150bp using the existing curve. These bonds haven’t been trading much recently but the CMPCCI $500m 3.000% 04/06/2031 was spotted at around G+145bp earlier in the week, and the $500m 6.125% 06/23/2033 was around G+155bp.

There was a broad gamut of views on the right spread over senior, with leads suggesting a differential of around 150bp using the CEMEX 7.20% Perp and AES Andes 8.15% 06/10/2055 as a reference point, noting that these bonds trade around 130bp-140bp over their senior curves, but call dates for both bonds are 2030. That would put fair value at 300bp over. The deal was ultimately priced with a spread of 283.4bp.

However others and investors used multiples, rather than absolute values, to calculate the spread over senior, and here buyside estimates ranged from 1.75x using Cemex and CMPC, which would be a 125bp differential, or 2.2x using Chilean banks (BCICI). Some investors, meanwhile, expect this to trade down to 100bp over senior – and the bond was significantly up in the grey mid-afternoon.

Without a true reference point here, we’re going CONCESSION IS N/A. But suffice to say that the level of demand speaks to scarcity value, we hear from investors, rather than overly generous pricing.

FINAL BOOKS: 

$600m 32.25nc7 Sub - $4.300bn (7.17x) - PEAK $4.600bn

[SIERRA PACIFIC POWER] 

Sierra Pacific Power Co “BRKHEC” (Baa3/BBB s/s) US$450m (WNG) SEC registered 30nc5 fixed to fixed junior subordinated notes due 12/15/55. Optional Int. Deferral: Cumulative deferral for one or more deferral periods of up to 20 consecutive semi-annual Interest Payment Periods. Optional Redemption: In whole or in part (i) on any day in the period commencing on the date falling 90 days prior to the First Reset Date and ending on and including the First Reset Date and (ii) after the First Reset Date, on any interest payment date, at a redemption price in cash equal to 100% of the principal amount of the notes being redeemed, plus accrued and unpaid interest on the notes to be redeemed to, but excluding, the redemption date. In whole but not in part, for a period of 120 days following the occurrence of a Tax Event at a redemption price in cash equal to 100% of the principal amount of the notes, plus accrued and unpaid interest on the notes to, but excluding, the redemption date. In whole but not in part, for a period of 120 days following the occurrence of a Rating Agency Event at a redemption price in cash equal to 102% of the principal amount of the notes, plus accrued and unpaid interest on the notes to, but excluding, the redemption date. Reset Date: December 15, 2030. UoP: to fund capital expenditures and for general corporate purposes. Denoms: 2,000 x 1,000. Sale into Canada: Yes - Exemption. Marketing: www.netroadshow.com; Passcode: SIERRAPACIFICJSN2025. Pricing 9/4. Settle 9/8 (T+2). CUSIP: 826418BR5. ISIN: US826418BR51.

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

Announced as $450m no grow, we heard initial thoughts as 6.625% area.

Went straight to launch at $450m 30nc5 at 6.20%.

Ultimately, a $450m deal priced as follows:

$450m 6.20% 12/15/55 100.00 6.20%. Back-end reset: T+254.9.

As for r/v, outstanding BRKHEC subs were quoted as follows:

Nevada Power Co (Baa2/BBB)
-BRKHEC 6.250% due 05/15/55 nc 02/15/30 $100.30 (G256; 6.197% YTC) - $300m pxd FEB 2025 b/e + 193.6 (w/o floor)

***  NC Feb ‘30 6.197% YTC, add 5bp for curve = 6.25%.

Add 5bp for credit differential = 6.30%.

b/e differential:

Outstanding b/e 193.6 minus outstanding G256 = -62.4 * 0.2 = -12.48bp.

Take away 10bp for b/e differential = 6.20%.

No floor adjustment.

At the 6.20% pricing level, CONCESSION IS FLAT.

Pacificorp (Baa3/BB+)
-BRKHEC 7.375% due 09/15/55 nc 06/17/30 $103.50 (G286; 6.514% YTC) - $850m pxd MAR 2025 b/e +331.9 (with floor)

COMPS AWAY:

NextEra Energy Capital (Baa2/BBB/BBB)
-NEE 6.375% due 08/15/55 nc 05/15/30 $103.00 (G199; 5.640% YTC) - $1.5bn pxd FEB 2025 b/e 205.3

Dominion Energy Inc (Baa3/BBB-/BBB-)
-D 6.000% due 02/15/56 nc 11/15/30 $101.00 (G208; 5.774% YTC) - $825m pxd 08/06/25 b/e +226.2 (with floor)

Evergy Inc (Baa3/BBB-)
-EVRG 6.650% due 06/01/55 nc 03/01/30 $101.50 (G262; 6.261% YTC) - $500m pxd DEC 2024 b/e +255.8

FINAL BOOK:

$450m 30nc5 Jr Sub - $2.800bn (6.22x) - PEAK $3.900bn

[BRIXMOR OPERATING] 

Brixmor Operating Partnership LP “BRX” (Baa2/BBB/BBB s/s/s) US$400m (no grow) SEC registered L7y FXD sr notes due 2/15/33. MWC then 2mos par call. Denoms: 2,000 x 1,000. UOP: The company intends to use the net proceeds from this offering for general corporate purposes, including repayment of indebtedness. Pricing 9/4. Settle 9/9 (T+3). CUSIP: 11120VAP8. ISIN: US11120VAP85.

VIA BofA/Miz/TSI/WFS (B&D) joint active books.

Announced as $400m no grow, we heard initial thoughts as T+130 area.

Went straight to launch at $400m L7y at T+100.

Ultimately, a $400m deal priced as follows:

$400m 4.85% 2/15/33 99.849 4.875% T+100. MW+15.

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

-BRX 2.500% due 08/16/31 T+100bp (G89; $88.92) - $500m pxd AUG 2021
-BRX 5.200% due 04/01/32 T+91bp (G98; $102.25) - $400m pxd FEB 2025
-BRX 5.750% due 02/15/35 T+100bp (G108; $104.00) - $400m pxd MAY 2024

*** April ‘32 G98, add 5bp for ‘32/’33 curve gets f/v to T+103bp. Also looking at Feb ‘35 G108, add 2bp for curve gets new issue 10y at 110bp. Take away 10bp for 10s/7s curve gets new issue 7y at 100bp. Add 3bp for long 7y extension gets f/v to T+103bp. At the T+100bp pricing level, CONCESSION IS NEG 3BP.

COMPS AWAY:

Regency Centers LP (A3/A-)
-REG 3.700% due 06/15/30 T+60bp (G61; $97.63) - $600m pxd MAY 2020
-REG 5.000% due 07/15/32 T+73bp (G76; $102.22) - $400m pxd 05/08/25 +95
-REG 5.250% due 01/15/34 T+69bp (G87; $102.54) - $400m pxd JAN 2024
-REG 5.100% due 01/15/35 T+79bp (G87; $100.96) - $325m pxd AUG 2024

Kimco Realty OP LLC (Baa1/BBB+/A-)
-KIM 3.200% due 04/01/32 T+50bp (G84; $91.72) - $600m pxd FEB 2022
-KIM 4.600% due 02/01/33 T+60bp (G85; $98.89) - $650m pxd AUG 2022
-KIM 4.850% due 03/01/35 T+80bp (G85; $99.03) - $500m pxd SEPT 2024
-KIM 5.300% due 02/01/36 T+94bp (G93; $101.41) - $500m pxd 06/16/25 +92

Federal Realty Investment Trust (Baa1/BBB+)
-FRT 3.200% due 06/15/29 T+60bp (G67; $96.34) - $400m pxd JUN 2019
-FRT 3.500% due 06/01/30 T+68bp (G69; $96.46) - $400m pxd MAY 2020

Kite Realty Group Trust (Baa2/BBB/BBB)
-KRG 4.750% due 09/15/30 T+100bp (G101; $100.41) - $400m pxd AUG 2020
-KRG 5.200% due 08/15/32 T+101bp (G103; $101.76) - $300m pxd 06/17/25 +110
-KRG 5.500% due 03/01/34 T+92bp (G109; $102.68) - $350m pxd JAN 2024

Philliips Edison & Co Inc (Baa2/BBB)
-PECO 2.625% due 11/15/31 T+110bp (G96; $88.69) - $350m pxd SEPT 2021
-PECO 5.250% due 08/15/32 T+96bp (G98; $102.34) - $350m pxd 06/12/25 +112.5
-PECO 4.950% due 01/15/35 T+102bp (G108; $98.18) - $350m pxd SEPT 2024

FINAL BOOK:

$400m L7yr - $2.300bn (5.75x) - PEAK $3.200bn

[GOLDMAN SACHS BDC]

Goldman Sachs BDC Inc (GSBD), exp Baa3/BBB- (s/s) by Moody's/Fitch, US$400m (no grow) SEC registered 5y sr notes due 9/9/30. MWC then 1mo par call. 100 CoC. Denoms: 2,000 x 1,000. Sale into Canada: Yes - Exemption. UOP: pay down a portion of the Revolving Credit Facility and for general corporate purposes. Pricing 9/4. Settle 9/9 (T+3). CUSIP / ISIN: 38147UAF4 / US38147UAF49. 

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

Announced as US$400m (WNG), we heard initial price thoughts as T+220 area.

Went straight to launch at $400m 5y at T+200.

Ultimately, a $400m deal priced as follows:

$400m 5.65% 9/9/30 99.974 5.656% T+200. MW+30.

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

-GSBD 6.375% due 03/11/27 T+120bp (G113; $102.3) - $400M pxd Mar 2024

Recent BCRED and ARCC 5y both priced at T+160 with ARCC L5y moving 4bp tighter over the last two days:

Blackstone Private Credit (Baa2/BBB-/N/A)
-BCRED 5.050% due 09/10/30 T+160bp (G160; $99) - $500M pxd 09/03/25 +160

Ares Capital Corp (Baa2/BBB/BBB)
-ARCC 5.100% due 01/15/31 T+160bp (G156; $98.9) - $650M pxd 09/02/25 +160

Another GS instrument with similar rating was GSCRED:

Goldman Sachs Private Credit Corp (Baa3/NA/BBB-)
-GSCRED 6.250% due 05/06/30 T+198bp (G200; $102.49) - $600M pxd 4/29/25 +250

** GSCRED was a new entity and April this year was its first issuance. GSBD landed about flat to GSCRED May 30s G200.  

Other Comps away:

Morgan Stanley Direct Lending Fund (Baa3/N/A/BBB-)
-MSDL 6.000% due 05/19/30 T+178bp (G180; $102) - $350M pxd 05/12/25 +215

Sixth Street Specialty (Baa2/BBB-/BBB)
-TSLX 5.625% due 08/15/30 T+167bp (G168; $101) - $300M pxd Feb 2025

All said, GSBD only has outstandings of short ends (26s and 27s), THE OFFICIAL NIC CALL WAS N/A. 

FINAL BOOKS:

$400m 5yr - $1.260bn (3.15x) - PEAK $1.525bn

[WEBSTER FINANCIAL CORP]

Webster Financial Corp (WBS), exp Baa2/BBB-/BBB+ (s/s/s) by Moody's/S&P/Kroll, US$350m (upped from $300m)  SEC registered 10nc5 fixed rate reset subordinated notes due 9/11/35. Reset Date: 9/11/30. Reset Determination Date: Third business day preceding the Reset Date. Interest rate: The Notes will bear interest (i) from and including the date of original issuance to, but excluding, the Reset Date or the date of earlier redemption, at an initial rate of % per annum, and (ii) from and including the Reset Date to, but excluding, the Maturity Date or the date of earlier redemption, at a rate per annum equal to the U.S. Treasury Rate for a five-year maturity as of the Reset Determination Date plus basis points. Optional Redemption: Par Call: (i) In whole but not in part, on the Reset Date (ii) In whole at any time or in part from time to time, 3- months prior to the Maturity Date. Denoms: 1,000 x 1,000. Sale into Canada: Yes - Exemption. UOP: General corporate purposes, which may include, but are not limited to, the partial or full redemption of our subordinated indebtedness. Pricing 9/4. Settle 9/11 (T+5). CUSIP / ISIN: 947890AK5 / US947890AK50.

VIA BofA (B&D)/GS/JPM/MS joint active books. Co-mgr: Piper.

Following investor calls, the deal was announced this morning with $300m size and IPT at T+245a.

The deal went straight to launch at T+212.5bp with an upsize to $350m.

$350m 5.784% 9/11/35 100.00 5.784% T+212.5 (reset).

While Webster Financial is not a debut name, its outstandings are old, small and illiquid.  As such, CONCESSION IS N/A.

Comps away included the following;

Zions Bancorp NA (BBB/BBB)
-ZION 6.816% due 11/19/35 T+190 (G200; $105.05) - $500m pxd NOV 2024

First Citizens Bancshare (Baa2/BBB-)
- FCNCA 4.600% due 09/05/35 (nc 09/05/30) T+184bp (G184; $100.45) - $600m pxd 9/2/25 +185

SouthState Bank Corp (Baa3/NR)
- SSB 7.000% due 06/13/35 (nc 06/13/30) T+250bp (G251; $103.45) - $350m pxd 6/10/25 +291.8bp

FINAL BOOK: 

$350m 10yr - $1.7bn (4.86x) - PEAK $2.00BN 

[NEW MANDATES & MARKETING]

Drawbridge Special Opportunities Fund LP (Ticker: DRAWBR) (“Drawbridge” or the “Partnership”) and Drawbridge Special Opportunities Finance Corporation (together with the Partnership, the “Co-Issuers”), expected ratings of BBB+/Stable by S&P and BBB-/Stable by Fitch, has asked Wells Fargo Securities to arrange a series of fixed income investor calls to be conducted on Thursday, September 4th, 2025. A capital markets transaction pursuant to Rule 144A may follow, subject to market conditions.

An electronic investor presentation will be made available during the calls. Additionally, a pre-recorded voice over investor presentation is available (see details below). All potential investors who would like to participate are encouraged to sign up for a call using the pre-registration links below.

Wells Fargo Securities is coordinating logistics.

Company Participants:

Jack Neumark – President and Managing Partner, Co-CIO of DBSO

Jason Meyer – Chief Operating Officer

Avi Dreyfuss – Chief Financial Officer of DBSO

Schedule for Thursday, September 4th, 2025:

Call #1: 2:00-2:50PM ET | https://evercall.co/oacc/46227

Call #2: 3:00-3:50PM ET | https://evercall.co/oacc/45418

Call #3: 4:00-4:50PM ET | https://evercall.co/oacc/45751

Deal Roadshow Investor Login Details:

URL: https://dealroadshow.com

Entry Code: DBSO2025

Direct Link: https://dealroadshow.com/e/DBSO2025

About Drawbridge Special Opportunities Fund LP:

Drawbridge is a private investment partnership focused on making highly diversified investments in both private and public credit primarily throughout the United States, Western Europe, and the Pacific Region on an opportunistic basis. Drawbridge launched in 2002 and forms the core of Fortress’s credit investing strategy. Drawbridge’s investors include universities, banks, endowments, funds of funds, pension funds, high net worth individuals, sovereign wealth funds, as well as Fortress’s partners and managing directors.

As of June 30, 2025, Drawbridge’s total investment portfolio was $9.9 billion and was highly diversified across 659 investments with $6.0 billion in partners’ capital. From its inception in 2002 to June 30, 2025, Drawbridge has generated a cumulative net return of 720.7% (9.6% annualized), generally outperforming many of its relevant benchmarks.

Drawbridge achieves superior risk-adjusted returns by opportunistically acquiring a diversified portfolio of undervalued and distressed investments primarily in North America and Western Europe, but also in Australia, Asia and elsewhere. Drawbridge also acquires or participates in senior and mezzanine corporate and real estate debt obligations. Drawbridge sources its investment opportunities through an omni-channel approach, including direct-to-company, financial sponsors, banks, advisors, and proprietary networks.

Drawbridge’s competitive edge lies in its ability to directly source and bilaterally negotiate investments across the credit spectrum, allowing it to uncover unique opportunities and structure bespoke solutions. Drawbridge believes that the greatest potential for returns resides with managers who possess the broadest mandates and the agility to move opportunistically across the entire credit landscape, supported by deep experience, robust investment infrastructure, and comprehensive resources. Drawbridge’s origination platform incorporates five distinct and complimentary investment strategies: Direct Lending, Corporate Debt & Securities, Portfolios and Orphaned Assets, Real Estate, and Structured Finance.

About Fortress Investment Group:

Fortress Investment Group LLC (“Fortress”) is a leading and highly diversified alternative investment management firm with $53 billion in assets under management as of June 30, 2025, and is majority owned by Mubadala Investment Company and Fortress management. Fortress, which was founded in 1998, is headquartered in New York and has 900+ employees. Fortress operates in the U.S., Europe, Japan, Hong Kong Saudi Arabia, and Australia managing across a variety of credit and real estate strategies. Fortress is a pioneer of offering a diversified suite of alternative products to approximately 2,000 institutional clients and private investors worldwide. Key segments include Corporates, Asset-Backed Finance, and Real Estate. The core management team includes Drew McKnight, Joshua Pack, and Jack Neumark.

[SSA PRICED]

Swedish Export Credit Corporation (SEK) (100% owned by the Kingdom of Sweden) Aa1/AA+ (s/s) US$1bn SEC registered 5y global due 7/29/30. BNP/Citi (B&D)/DB/TD joint books. Listing: Irish Stock Exchange's Regulated Market (Euronext Dublin). Law: New York Law. Denoms: 200k x 1k. Taking IOIs, expect tomorrow's business (9/4). Settle 9/11 (T+5).

IPTs: SOFR MS+51 area.
GUIDANCE: SOFR MS+49 area. IOIs in excess of $2.1bn (incl. $250m JLM).

LAUNCHED: $1bn 5y at SOFR MS+48. Orderbook in excess of $2.7bn (incl. $350m JLM).

PRICED: $1bn 3.75% 7/29/30 99.870 3.780% SOFR MS+48 (T+12.4).

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