Commentary & Deal Flow

CFR CREDIT CLOSE: More Than Halfway To Estimate; Still Waiting For Chunky Supply

Today turned in 10 trades for $14.350bn, with a strong showing from FIGs ($11bn total).  However, despite a ton of smoke on Friday, an appearance from the much-rumored “hefty” issuer (s?) did not materialize (rumors suggested one, possibly two, jumbo trades this week). 

Maybe we won’t need a biggie if the pace continues. Today’s $14.350bn gets the week over halfway to the average estimate:

With BMO and RY issuing today, following TD from last Friday, September now sports a total of 5 Canadian bank deals. This MTD ranks ties as the 3rd largest month in terms of Canadian bank deal totals, looking back through 2020:

It's possible there could be more Canadian banks this month. Until today, Canadian banks in 2025 had focused their LRCN efforts on 60nc5s. But RY stepped in today with a 60nc10 that ended up with a book that far outpaced anything we've seen looking back through 2024. RY returned today after pricing a 60nc5 LRCN in June. So there could be a possibility for more 60nc10 Canadian bank LRCN returns after the demand today.

Turning to low coupons, AMAT's 5y and 10y ties for the 2nd lowest coupon in both tenors ytd.

The only 2025 10y with a lower coupon was GOOGL from April.

In addition to AMAT's 5y comes in 2nd ytd (behind HD from last week), and it also ranks in the top 5 back to 2023:

BMO's 3nc2 and 6nc5 also ranks in low coupons.

The 3nc2 ranks as the 2nd lowest 3nc2 coupon back to 2023 behind only BNS from last week.

BMO's 6nc5 also ranks 2nd for 6nc5 lowest coupons back to 2023 behind only BNS again.

Here's today's rundown:

[SANTANDER UK PLC] 

Santander UK PLC (SANUK) exp Baa1/BBB/A US$2.75bn SEC registered 3-part sr notes (4nc3 fixed to floating and/or FRN due 9/22/29 and 11nc10 fixed to floating due 9/22/36). Par call: 1year prior to maturity (9/22/28 and 9/22/35). Coupon: 4nc3 FTF: [●]%, Fixed rate semi-annual 30/360 until the Optional Redemption Date, then from (and including) September 22, 2028 to (but excluding) the Maturity Date, the interest rate on the notes will be equal to the USD Compounded SOFR Index Rate plus [●]% per annum, quarterly act/360; 4nc3 FRN: Base Rate plus the spread of [●] basis points per annum act/360, subject to a minimum interest rate of 0%, payable quarterly in arrears for each quarterly Interest Period from, and including, September 22, 2025 to, but excluding, the Maturity Date; 11nc10: [●]%, Fixed rate semi-annual 30/360 until the Optional Redemption Date, then from (and including) September 22, 2035 to (but excluding) the Maturity Date, the interest rate on the notes will be equal to the USD Compounded SOFR Index Rate plus [●]% per annum, quarterly act/360. Denoms: 200,000 x 1,000. Sale into Canada: Yes - Exemption. Listing: will be made to list the Notes on the NYSE in accordance with its rules. Governing Law: New York. UOP: gcp. Pricing 9/15. Settle 9/22 (T+5). CUSIP / ISIN: 4nc3 FRN: 80281LAW5 / US80281LAW54, 4nc3 FTF: 80281LAX3 / US80281LAX38; 11nc10: 80281LAY1 / US80281LAY11

VIA Sant (B&D) as sole global coordinator.
JBRs: 4nc3 tranches: JEFF/JPM/MS/Sant/TD/WFS;
JBRs: 11nc10: Citi/JEFF/JPM/MS/Sant/WFS.

Announced as benchmark, final size came in at $2.75bn with price progression as follows:

4nc3 FRN – IPT Seqv; GDNC Seqv; PXD $400m 9/22/29 FRN at SOFR+107, at 100.
4nc3 FTF – IPT T+110a; GDNC 82#; PXD $1.35bn 4.320% 9/22/29 100.00 4.320% T+82. Back-end: SOFR+107.0.
11nc10 FTF – IPT T+140a; GDNC 110#; PXD$1bn 5.136% 9/22/36 100.00 5.136% T+110. Back-end: SOFR+157.8.

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

SANUK 6.534% due 01/10/29 (nc 28) T+78bp (G76; $104.91) - $1.25bn pxd JAN 2023

Comps away:

Lloyds Banking Group PLC (A3/A-/A+)
- LLOYDS 4.818% due 06/13/29 (nc 28) T+65bp (G64; $101.72) - $1.25bn pxd 6/10/25 +83

NatWest Group PLC (A3/A-/A+)
- NWG 5.808% due 09/13/29 (nc 28) T+63bp (G63; $104.68) - $1.25bn pxd JUN 2023

Nationwide Building Society (A3/BBB+/A)
- NWIDE 4.649% due 07/15/29 (nc 28) T+75bp (G74; $101.06) - $750m pxd 7/7/25 +80

Banco Santander (Baa1/A-/A)
- SANTAN 5.538% due 03/14/30 (nc 29) NPS T+65bp (G73; $104.13) - $1.25bn pxd MAR 2024

**4NC3: Versus comps away, SANUK should trade around at 5-10 back of LLOYDS.

LLOYDS June 29nc28 G64.  Call f/v T+65bp.  + 5-10 puts SANUK f/v at T+70-75bp

At the same time, outstanding SANUK Jan 29nc28s were quoted G76 – pointing to f/v more in the T+82bp neighborhood.

Putting more weight on the SANUK outstandings over the LLOYDS, ultimately, f/v was pegged at T+79bp.  At the T+82bp pricing level, 4NC3 CONCESSION IS 3BP.

**11NC10: 4nc3 f/v pegged at T+79bp.  + 30bp 4nc3/11NC10 curve at IPT = T+109bp.  At the T+110bp pricing level, 11NC10 CONCESSION IS 1BP. 

FINAL BOOKS:

$400m 4nc3 FRN - $1.50bn (3.75x) - PEAK $1.600BN
$1.35bn 4nc3 FTF - $6.10bn (4.52x) - PEAK $6.400BN
$1.00BN 11nc10 FTN - $7.10bn (7.10x) - PEAK $8.200BN 

[BANK OF MONTREAL] 

Bank of Montreal “BMO” (A2/A-/AA-) hit the market today with US$2.25bn SEC registered 3-part sr notes (3nc2 fixed to float and/or FRN due 9/15/28 and 6nc5 fixed to float due 9/15/31). BMO (B&D)/BofA/CACIB/NWM/UBS/WFS joint active books. Callable 9/15/27 on 3nc2 and 9/15/30 on 6nc5. MWC on FTF tranches. 1mo par call on 3nc2 and 1mo on 6nc5. Denoms: 2,000 x 1,000. Sale into Canada: Yes - exemption. UOP: gcp. Pricing 9/15. Settle 9/22 (T+5). CUSIP: 3y FTF: 06368MXU3, 3y FRN: 06368MXW9, 6nc5: 06368MXV1. ISIN: 3y FTF: US06368MXU34, 3y FRN: US06368MXW99, 6nc5: US06368MXV17.

VIA BMO (B&D)/BofA/CACIB/NWM/UBS/WFS joint active books.

Announced as benchmark, final size came in at $2.25bn with price progression as follows:

3nc2 FRN – IPT Seqv; GDNC S+75#; PXD $500m 9/15/28 FRN at SOFR+75, at 100.
3nc2 FTF – IPT T+75a; GDNC T+53#; PXD $750m 4.062% 9/15/28 100.00 4.062% T+53. Back-end: SOFR+75.
6nc5 FTF – IPT T+100a; GDNC T+75#; PXD $1bn 4.350% 9/15/31 100.00 4.350% T+75. Back-end: SOFR+108.

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

- BMO 5.004% due 01/27/29 (nc 28) T+55bp (G53; $102.12) - $750m pxd 1/22/25 +67
- BMO 5.727% due 09/25/28 T+48bp (G48; $104.78) - $1.0bn pxd SEPT 2023
- BMO 4.640% due 09/10/30 (nc 29) T+56bp (G61; $101.73) - $800m pxd SEPT 2024
- BMO 5.511% due 06/04/31 T+74bp (G68; $105.69) - $800m pxd MAY 2024

With Canadian banks typically pricing versus the last trade in the market, outstanding BNS as quoted as follows:

Bank of Nova Scotia (A2/A-)
- BNS 4.043% due 09/15/28 (nc 27) T+55bp (G55; $99.93) - $800m pxd 9/8/25 +55
- BNS 4.338% due 09/15/31 (nc 30) T+77bp (G77; $99.87) - $850m pxd 9/8/25 +77

The BMO differential was pegged at anywhere from 2-5bp inside BNS (historically maybe more like 5bp, but can argue less differential at the current levels).

4NC3: BNS Sept 28nc27 G55 minus 2-5bp = T+50-53bp. At the T+53bp pricing level, 4NC3 CONCESSION IS FLAT TO 3BP (1.5BP MID)

6NC5: BNS Sept 31nc30 G77 minus 2-5bp = T+72-75bp.  At the T+75bp pricing level, 6NC5 CONCESSION IS FLAT TO 3BP (1.5BP MID) 

Other comps away:

Canadian Imperial Bank of Commerce (A2/A-/AA-)
- CM 4.243% due 09/08/28 (nc 27) T+56bp (G56; $100.29) - $850m pxd 9/2/25 +60
- CM 4.580% due 09/08/31 (nc 30) T+83bp (G83; $100.67) - $1.0bn pxd 9/2/25 +85

Toronto-Dominion Bank (A2/A-/AA-)
- TD 4.574% due 06/02/28 (bullet) T+49bp (G49; $101.50) - $1.00bn pxd 05/27/25 +65
- TD 4.808% due 06/03/30 (bullet) T+62bp (G63; $102.50) - $700m pxd 5/27/25 +78

Royal Bank of Canada (A1/A/AA-)
- RY 4.715% due 03/27/28 (nc 27) T+48bp (G44; $101.03) - $1.00bn pxd 3/24/25 +68
- RY 4.696% due 08/06/31 (nc 30) T+73bp (G73; $101.57) - $1.00bn pxd 7/28/25 +73

FINAL BOOKS:

$500m 3nc2 - $1.200bn (2.40x) - PEAK $1.300bn

$750m 3nc2 FTF - $1.750bn (2.33x) - PEAK $2.200bn

$1bn 6nc5 FTF - $2.900bn (2.90x) - PEAK $3.700bn

[HYUNDAI CAPITAL AMERICA]

Hyundai Capital America “HYNMTR” (A3/A-/A- s/s/s) US$2bn 144A/Reg S no reg rights 4-part sr notes (3y FXD and/or FRN due 9/18/28 and 5y FXD and/or FRN due 9/18/30). MWC on FXD tranches. 1mo par call on 5y FXD tranche. Support Agreement Provider: Hyundai Motor Company. Denominations: $2k x $1k. Sales into Canada: Yes – via Exemption. UOP: gcp. Marketing: Direct Link: https://dealroadshow.com/e/HCA2025; URL: https://dealroadshow.com | Entry Code: HCA2025. Pricing 9/15. Settle 9/18 (T+3). 144A CUSIP / ISIN: 3y FXD: 44891ADZ7 / US44891ADZ75, 3y FRN: 44891AEB9 / US44891AEB98, 5y FXD: 44891AEA1 / US44891AEA16, 5y FRN: 44891AEC7 / US44891AEC71.

VIA  BofA (B&D)/JPM/Miz/MUFG/RBC/TD joint active books.

Announced with benchmark size, final size came in at $2bn with price progression as follows:

3y FRN - IPT SOFR equiv; GDNC Seqv; PXD $300m 9/18/28 FRN at SOFR+107, at 100.

3y FXD - IPT T+110 area; GDNC T+82; PXD $700m 4.25% 9/18/28 99.799 4.322% T+82. MW+15.

5y FRN - IPT SOFR equiv; GDNC Seqv; PXD $300m 9/18/30 FRN at SOFR+130, at 100.

5y FXD - IPT T+125 area; GDNC T+97#; PXD $700m 4.50% 9/18/30 99.664 4.576% T+97. MW+15.

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

-HYNMTR 4.875% due 06/23/27 T+71bp (G69; $101.06) - $1bn pxd 06/17/25 +93
-HYNMTR 4.900% due 06/23/28 T+81bp (G80; $101.52) - $1bn pxd 06/17/25 +103
-HYNMTR 4.550% dye 09/26/29 T+83bp (G87; $100.41) - $850m pxd SEPT 2024
-HYNMTR 5.100% due 06/24/30 T+92bp (G93; $102.40) - $600m pxd 06/17/25 +112
-HYNMTR 4.750% due 09/26/31 T+96bp (G87; $100.95) - $500m pxd SEPT 2024
-HYNMTR 5.400% due 06/23/32 T+102bp (G105; $103.28) - $500m pxd 06/17/25 +127

*** 5yr: Jun ‘30 G93, add 2bp for curve gets f/v to T+95bp. At the T+97bp pricing level, 5yr CONCESSION IS 2BP.

*** 3yr: Jun ‘28 G80, add 2bp for curve gets f/v to T+82bp. At the T+82bp pricing level, 3yr CONCESSION IS FLAT.

COMPS AWAY:

American Honda Finance (A3/A-)
-HNDA 4.250% due 09/01/28 T+60bp (G60; $100.41) - $700m pxd 09/02/25 +65
-HNDA 4.500% due 09/04/30 T+77bp (G77; $100.54) - $650m pxd 09/02/25 +80
-HNDA 5.150% due 07/09/32 T+86bp (G87; $102.88) - $750m pxd 07/08/25 +100

Volkswagen Group of America Finance LLC (Baa1/BBB+/A-)
-VW 4.450% due 09/11/27 T+74bp (G73; $100.32) - $700m pxd 09/02/25 +82
-VW 4.550% due 09/11/28 T+90bp (G90; $100.41) - $700m pxd 09/02/25 +95
-VW 4.850% due 09/11/30 T+105bp (G105; $100.86) - $600m pxd 09/02/25 +112

General Motors Financial Co Inc (Baa2/BBB/BBB)
-GM 5.050% due 04/04/28 T+77bp (G76; $101.87) - $1.2bn pxd FEB 2025
-GM 4.900% due 10/06/29 T+94bp (G98; $101.28) - $1bn pxd SEPT 2024
-GM 5.450% due 07/15/30 T+108bp (G109; $103.22) - $1bn pxd 05/27/25 +145
-GM 5.625% due 04/04/32 T+119bp (G124; $103.50) - $750m pxd FEB 2025
-GM 6.150% due 07/15/35 T+145bp (G148; $104.85) - $750m pxd 05/27/25 +172

FINAL BOOKS:

$300m 3yr FRN - $2.300bn (7.67x) - PEAK $2.300bn

$700m 3yr FXD - $4.000bn (5.71x) - PEAK $4.400bn

$300m 5yr FRN - $2.100bn (7.00x) - PEAK $2.150bn

$700m 5yr FXD- $4.350bn (6.21x) - PEAK $4.900bn

[RWE FINANCE US LLC]

RWE Finance US LLC “RWE” (Baa2/BBB+ s/s) by Moody's/Fitch, US$2bn 144A/Reg S no reg rights 2-part sr notes (10y due 9/18/35 and 30y due 9/18/55). MWC then 3mos par call on 10y and 6mos on 30y. 101 CoC. Guarantor: RWE Aktiengesellschaft (Guarantor Ratings: Baa2 (s) by Moody's / BBB+ (s) by Fitch. Coupon: 10y: Fixed rate, Semi-Annual, 30/360, Following Business Day Convention (Unadjusted), 30y: Fixed rate, Semi-Annual, 30/360, Following Business Day Convention (Unadjusted). Denoms: 150,000 x 1,000. Sale into Canada: Yes - Exemption. Governing Law: New York. UOP: the issuer intends to use the net proceeds from this offering to finance or refinance, in whole or in part, existing and/or future Eligible Green Projects in accordance with the RWE AG’s green financing framework dated June 2023. Pricing 9/15. Settle 9/18 (T+3). 144A CUSIP: 10y: 749983AC6, 30y: 749983AE2. 144A ISIN: 10y: US749983AC66, 30y: US749983AE23. 

VIA BNP/Barc (B&D)/JPM/Miz/MS joint active books. 

Announced with benchmark size, we heard initial thoughts as 10y T+145 area, 30y T+155 area.

Guidance came in at 10y T+115#, 30y T+125#.

Ultimately, a $2bn deal priced as follows:

$1bn 5.125% 9/18/35 99.459 5.195% T+115. MW+20.

$1bn 5.875% 9/18/55 99.358 5.921% T+125. MW+20.

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

-RWE 5.875% (green) due 04/16/34 T+97bp (G110; $105.82) - $1bn pxd APRL 2024
-RWE 6.250% (green) due 04/16/54 T+121bp ($105.19) - $1bn pxd APRL 2024

*** 30yr: April ‘54 T+121, add 1bp for ‘54/’55 curve gets f/v to T+122bp. At the T+123bp pricing level, 30yr CONCESSION 3BP.

*** 10yr: April ‘34 G110, add 3bp for ‘34/’35 curve gets f/v to T+113bp. At the T+115bp pricing level, 10yr CONCESSION IS 2BP.

COMPS AWAY:

Electricite de France SA (Baa1/BBB/BBB+)
-EDF 5.750% due 01/13/35 T+109bp (G116; $104.34) - $700m pxd JAN 2025
-EDF 6.375% due 01/13/55 T+135bp ($104.95) - $800m pxd JAN 2025

Enel Finance International NV (Baa1/BBB/BBB+)
-ENELIM 5.500% due 06/26/34 T+89bp (G101; $103.91) - $750m pxd JUN 2024
-ENELIM 7.750% due 10/14/52 T+125bp ($124.51) - $1bn pxd OCT 2022

Engie SA (Baa1/BBB+/BBB+)
-ENGIF 5.625% due 04/10/34 T+87bp (G101; $104.82) - $750m pxd APRL 2024
-ENGIF 5.875% due 04/10/54 T+96bp ($103.61) - $500m pxd APRL 2024

SNAM SpA (Baa2/A-/BBB+)
-SRGIM 5.750% due 05/28/35 T+110bp (G114; $104.50) - $750m pxd 05/20/25 +130
-SRGIM 6.500% due 05/28/55 T+126bp ($108.04) - $500m pxd 05/20/25 +155

Duke Energy Corp (Baa2/BBB)
-DUK 4.950% due 09/15/35 T+93bp (G93; $99.84) - $1bn pxd 09/08/25 +95
-DUK 5.700% due 09/15/55 T+103bp ($100.19) - $750m pxd 09/08/25 +103

FINAL BOOKS:

$1bn 10yr Green - $5.200bn (5.20x) - PEAK $5.400bn

$1bn 30yr Green - $5.000bn (5.00x) - PEAK $5.100bn

[ROYAL BANK OF CANADA] 

Royal Bank of Canada ”RY” security ratings Baa2 (hyb)/BBB/BBB+ (s/s/s), US$1.35bn SEC registered 60NC10 fixed rate reset jr subordinated Additional Tier 1, Limited Recourse Capital Notes, Series 7, (Non-Viability Contingent Capital (NVCC)) (Subordinated Indebtedness) due 11/24/85. Interest Reset Dates: November 24, 2035 and each fifth anniversary date thereafter. Coupon Type: Fixed for 10 years and then resets every 5 years at the prevailing 5 year U.S. Treasury Rate plus [ ]%. Interest Payment Dates: Quarterly on February 24, May 24, August 24, and November 24 of each year, beginning November 24, 2025 (short first coupon). Denoms: $200k x $1k. Sale into Canada: Yes - Exemption. UOP: General Business Purposes, which may include the redemption of outstanding capital securities of the Bank and/or repayment of other outstanding liabilities of the Bank. Pricing 9/15. Settle 9/23 (T+6). CUSIP: 780082AY9. ISIN: US780082AY99. 

VIA  RBC (B&D)/BofA/Citi/JPM/MS/HSBC joint books.

Announced with benchmark size, we heard initial thoughts as  6.875% area.

Guidance came in at  6.50%#.

Ultimately, a $1.35bn deal priced as follows:

$1.35bn 6.50% 11/24/85 100.00 6.50%. Back-end reset:  T+246.2bp.

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

-RY 6.750% due 08/24/85 nc30 $103.35 (G241; 6.00% YTC) - $1.25bn pxd 06/04/25 b/e +281.5
-RY 6.350% due 11/24/84 nc34 $99.33 (G252; 6.50% YTC) - $1bn pxd OCT 2024 b/e +225.7

Given Canadian bank TD just priced last Fridat, f/v was pegged vs TD.

Toronto-Dominion Bank (Baa1/BBB-/BBB+)

-TD 6.350% due 10/31/85 nc30 $100.20 (G274; 6.35% YTC) - $750m pxd 09/12/25 b/e +272.1

*** NC Oct ‘30 6.35%, add 25bp for 5s/10s curve = 6.60%.

Outstanding b/e 272.1 minus outstanding G274 = -1.9 * 0.2 = -0.38bp B/e differential not significant to adjust for.

Take away 10bp for credit differential gets f/v to 6.50%. At the 6.50% pricing level, CONCESSION IS FLAT.

FINAL BOOK:

$1.35bn 60nc10 Jr Sub AT1 - $6.000bn (4.44x) - PEAK $6.200bn

[FWD GROUP HOLDINGS] 

FWD Group Holdings Ltd (the “Issuer”, 1828.HK) (FWDGHD), exp issue ratings Baa2/BBB- by Moody's/Fitch (issuer ratings Baa1/BBB+ (s/s) by Moody's/Fitch), US$1.15bn 144A/Reg S (Cat 2) 2-part Subordinated Dated Capital Securities (5y FXD due 9/22/30 and 10y FXD due 9/22/35). Netroadshow: ww.netroadshow.com | FWG25 (not case-sensitive). Pricing 9/15. Settle 9/22 (T+5).

UOP: The net proceeds from the Capital Securities will be used for general corporate purposes of the Issuer and/or its subsidiaries, including but not limited to the refinancing of the U.S.$900,000,000 8.40 per cent. Subordinated Notes due 2029 issued on 5 April 2024 and the U.S.$750,000,000 8.045 per cent. Subordinated Perpetual Capital Securities originally issued on 15 June 2017 and 6 July 2017 and novated to the Issuer on 25 August 2023

VIA JGCs/JBRs/JLMs: 5y: HSBC/MS (B&D)/StanChart; 10y: HSBC/MS (B&D)/GS Asia. JLMs both tranches: DBS Bank/OCBC/UOB. 

Announced overnight as a benchmark, we heard initial price thoughts as 5y T+210 area and 10y T+230 area.

Revised guidance was announced as 5y T+170 area and 10y T+190 area. 

Final price guidance came in at 5y T+165# and 10y T+180#.

Ultimately, a $1.15bn deal priced as follows:

$575m 5.252% 9/22/30 100.00 5.252% T+165.

$575m 5.836% 9/22/35 100.00 5.836% T+180.

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

-FWDGHD 7.635% due 07/02/31 T+176bp (G168; $111.01) - $1.2B pxd Jun 2024

** Outstanding 8.4% due April 29 is currently being tendered and the quoted outstanding 7.635% Jul 31s is an EMTN/non-144A. 

We believe this to be the first 144a IG buyers had access to.  The previous 8.40% due Apr ‘29 appeared to carry Moody’s rating as Ba1 and Fitch rating as BBB- when it priced on 3/21/24.  Moody’s upgraded them to Baa3 on 7/17/25. As such, we’re going CONCESSION N/A.  

However, we did hear one Asia desk was pegging NIC at negative 10bp.  

Comps away:
Aia Group Ltd (A2/A-/A)
-AIA 4.950% due 03/30/35 T+74bp (G79; $101.08) - $500M pxd Sep 2024

Qbe Insurance Group Ltd (N/A/BBB+/BBB+)
-QBEAU 5.834% due 10/03/35 T+138bp (G137; $103.62) - $500M pxd 03/24/25 +175

Tongyanglife Insurance Co (Baa2/N/A/BBB)
-TYANLI 6.250% due 05/07/35 T+161bp (G163; $104.09) - $500M pxd 04/28/25 +240

Cathaylife Singapore (N/A/BBB+/BBB+ *-)
-CATLIF 5.950% due 07/05/34 T+94bp (G103; $106.68) - $600M pxd Jun 2024
-CATLIF 5.300% due 09/05/39 T+98bp (G106; $101.82) - $320M pxd Aug 2024

Fubon Life Singapore (N/A/BBB+/BBB+ *-)
-FUBON 5.450% due 12/10/35 T+121bp (G121; $101.29) - $650M pxd 09/01/25 +120

Nanshan Life Pte Ltd (N/A/BBB+/BBB *-)
-NSINTW 5.450% due 09/11/34 T+156bp (G164; $98.769) - $700M pxd Sep 2024
-NSINTW 5.875% due 03/17/41 T+168bp (G166; $100.98) - $395M pxd 09/09/25 +185

Shin Kong Life Sg Pte (N/A/BBB/N/A)
-SHIKON 6.950% due 06/26/35 T+183bp (G184; $107.75) - $400M pxd 06/11/25 +265

FINAL BOOKS:

$575m 5yr Sub - $6.500bn (11.30x)

$575m 10yr Sub - $8.300bn (14.43x)

[APPLIED MATERIALS] 

Applied Materials Inc (AMAT) exp A2/A (s/s) US$1bn SEC registered 2-part sr notes (long 5y due 1/15/31 and long 10y due 1/15/36). MWC then 1mo par call on L5y and 3mos on L10y. Denoms: 2,000 x 1,000. Sale into Canada: Yes - Exemption. UOP: To repay at maturity the outstanding $700 million in aggregate principal amount of the 3.900% Senior Notes due October 1, 2025 and the remaining net proceeds for general corporate purposes. Pricing 9/15. Settle 9/18 (T+3). CUSIP: L5y: 038222AT2, L10y: 038222AU9. ISIN: L5y: US038222AT25, L10y: US038222AU97. 

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

Announced as a benchmark, we heard initial price thoughts as L5y T+75 area, L10y T+90 area.

Guidance came in at L5y T+47#, L10y T+60#.

Ultimately, a $1bn deal priced as follows:

$550m 4.00% 1/15/31 99.672 4.070% T+47. MW+10.

$450m 4.60% 1/15/36 99.746 4.632% T+60. MW+10.

 As for r/v, outstanding AMAT was quoted as follows:
-AMAT 4.800% due 06/15/29 T+31bp (G37; $102.905) - $700M pxd Jun 2024
-AMAT 1.750% due 06/01/30 T+44bp (G45; $90.148) - $750M pxd May 2020
-AMAT 5.100% due 10/01/35 T+50bp (G53; $104.06) - $500M pxd Sep 2015

** L5y - outstanding Jun 30s G45; add 5bp for the 7 mos extension = T+50bp f/v (some would argue a mix of low $ for the $90 and flatter curve would point to the same spot). At the T+47bp pricing level, L5Y CONCESSION IS NEG 3BP.

** L10y - L5y f/v T+50bp; plus 15bp curve at IPT = T+65bp f/v. At the T+60bp pricing level, L10Y CONCESSION IS NEG 5BP.

Comps away:
Texas Instruments Inc (Aa3/A+/N/A)
-TXN 4.500% due 05/23/30 T+37bp (G38; $102.08) - $550M pxd 05/20/25 +45
-TXN 5.100% due 05/23/35 T+55bp (G59; $103.636) - $650M pxd 05/20/25 +63

Qualcomm Inc (A2/A/N/A)
-QCOM 4.500% due 05/20/30 T+42bp (G43; $101.867) - $500M pxd 05/19/25 +45
-QCOM 5.000% due 05/20/35 T+58bp (G62; $102.645) - $600M pxd 05/19/25 +67

Analog Devices Inc (A2/A-/A)
-ADI 4.500% due 06/15/30 T+44bp (G45; $101.807) - $650M pxd 06/12/25 +55
-ADI 5.050% due 04/01/34 T+36bp (G50; $104.266) - $550M pxd Apr 2024

FINAL BOOKS:

$550m L5yr - $2.200bn (4.00x) - PEAK $2.650bn

$450m L10yr - $3.000bn (6.67x) - PEAK $3.750bn

[KBC GROUP] 

     KBC Group NV “KBCBB” (A3/A-/A s/p/s) hit the market today with US$1.0bn 144A/Reg S 6nc5 fixed rate reset sr holdco notes due 9/23/31. Optional Redemption: Callable at par on the Optional Redemption Date (September 23, 2030); Tax Call, Loss Absorption Disqualification Event Call. Interest Basis: From (and including) the Issue Date to (and excluding) the Optional Redemption Date, [•]% p.a. If not redeemed on the Optional Redemption Date, from (and including) the Optional Redemption Date to (and excluding the Maturity Date), then-prevailing CMT Rate plus the Margin. Denoms: 200,000 x 1,000. Exp Listing: Euronext Dublin and Global Exchange Market. Sales into Canada: Yes, via Exemption. UOP: gcp. Pricing 9/15. Settle 9/23 (T+6). 

VIA  BofA (B&D)/Barc/DB/MS/JPM/KBC (Reg S only) joint active books.

Announced with benchmark size, we heard initial thoughts as T+105-110a.

The deal went straight to launch - $1bn at T+85bp.

PRICED: $1bn 4.454% 9/23/31 100.00 4.454% T+85 (reset spread).

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

- KBCBB 4.932% due 10/16/30 (nc 29) T+70bp (G75; $102.34) - $1.25bn pxd OCT 2024
- KBCBB 6.324% due 09/21/34 (nc 33) T+76bp (G92; $110.08) - $1.00bn pxd SEPT 2023

Working from the curve above, f/v was pegged at T+80-82bp.  CONCESSION 3-5BP (MID-POINT 4BP). 

Comps away:

Rabobank (A3/A-/A+)
- RABOBK 4.990% due 05/27/31 (nc 30) T+75bp (G76; $102.69) - $750m pxd 5/19/25 +92

ING Groep NV (Baa1/A-/A+)
- INTNED 5.066% due 3/25/31 (nc 30) T+75bp (G77; $102.91) - $1.00bn pxd 3/18/25 +100

FINAL BOOKS: 

$1bn 31nc30 - $3.40bn (3.40x) - PEAK $3.650BN 

[GA GLOBAL]

GA Global Funding Trust (GBLATL) exp A2/A/A (s/s/s) US$500m 144A/Reg S no reg rights 5y sr secured FA-Backed due 9/18/30. FA Provider: Forethought Life Insurance Company. Denoms: 150,000 x 1,000. Sale into Canada: Yes - Exemption. First pay: 3/18/26. UOP: To purchase one or more Funding Agreements from Forethought Life Insurance Company. Pricing 9/15. Settle 9/18 (T+3). 144A CUSIP: 36143L2V6. 144A ISIN: US36143L2V62. 

VIA GS/KKR/PNC/TSI/WFS (B&D) joint active books.

Announced as a benchmark, we heard initial price thoughts as T+112.5 area.

Guidance came in at T+90#.

Ultimately, a $500m deal priced as follows:

$500m 4.50% 9/18/30 99.982 4.504% T+90.

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

-GBLATL 5.400% due 01/13/30 T+73bp (G76; $104.05) - $500M pxd Jan 2025
-GBLATL 5.500% due 04/01/32 T+110bp (G114; $103.23) - $500M pxd 03/26/25 +130
-GBLATL 5.900% due 01/13/35 T+124bp (G129; $104.28) - $500M pxd Jan 2025

**Outstanding Jan 30s G76; 28mos between Jan 30s and Feb 32s is 38bp, so per month is worth 1.36bp; G76 plus 11bp for curve = T+87 bp f/v. At the T+90bp pricing level, CONCESSION IS 3BP.

Comps away:
Western-Southern Global (Aa3/AA-/AA)
-WSFIN 4.500% due 07/16/28 T+64bp (G64; $100.89) - $500M pxd 07/09/25 +70
-WSFIN 4.900% due 05/01/30 T+70bp (G72; $102.36) - $500M pxd 04/24/25 +100

Massmutual Global Funding (Aa3/AA+/AA+)
-MASSMU 4.550% due 05/07/30 T+60bp (G62; $101.33) - $800M pxd 05/01/25 +80
-MASSMU 5.050% due 08/26/35 T+79bp (G79; $101.47) - $600M pxd 08/19/25 +78

RGA Global Funding (A1/AA-/N/A)
-RGA 4.350% due 08/25/28 T+68bp (G68; $100.4) - $800M pxd 08/18/25 +65
-RGA 5.250% due 01/09/30 T+64bp (G68; $103.81) - $600M pxd Jan 2025
-RGA 5.000% due 08/25/32 T+97bp (G97; $101.24) - $700M pxd 08/18/25 +95

Athene Global Funding (A1/A+/A+)
-ATH 4.830% due 05/09/28 T+73bp (G72; $101.42) - $600M pxd 05/07/25 +105
-ATH 5.033% due 07/17/30 T+90bp (G91; $102.15) - $850M pxd 07/14/25 +105
-ATH 5.543% due 08/22/35 T+125bp (G125; $101.69) - $600M pxd 08/20/25 +125

Equitable America Global (A1/A+/N/A)
-EQH 4.650% due 06/09/28 T+64bp (G63; $101.24) - $750M pxd 06/02/25 +75
-EQH 4.950% due 06/09/30 T+76bp (G77; $102.36) - $850M pxd 06/02/25 +95
-EQH 4.700% due 09/15/32 T+92bp (G92; $99.78) - $500M pxd 09/08/25 +93

NLG Global Funding (A1/A+/N/A)
-LIFEVT 4.350% due 09/15/30 T+81bp (G81; $99.6) - $500M pxd 09/08/25 +82

Lincoln Fin Glbl Funding (A2/A+/A+)
-LNC 4.625% due 05/28/28 T+63bp (G62; $101.19) - $500M pxd 05/20/25 +70
-LNC 4.625% due 08/18/30 T+77bp (G77; $100.98) - $500M pxd 08/11/25 +82

Sammons Financial Global (N/A/A+/A+)
-SAMMON 5.050% due 01/10/28 T+64bp (G62; $101.93) - $500M pxd Jan 2025
-SAMMON 4.950% due 06/12/30 T+86bp (G87; $101.94) - $400M pxd 06/09/25 +90

Jackson Natl Life Global (A3/A/A)
-JXN 4.700% due 06/05/28 T+70bp (G69; $101.21) - $500M pxd 05/29/25 +80
-JXN 4.550% due 09/09/30 T+83bp (G83; $100.39) - $500M pxd 09/02/25 +85

American National Gf (N/A/A/A)
-ANGINC 5.250% due 06/03/30 T+108bp (G109; $102.26) - $400M pxd 05/27/25 +125

FINAL BOOKS:

$500m 5yr FABN - $950m (1.90x) - PEAK $1.230bn

[AMEREN ILLINOIS]

Ameren Illinois Co (AEE) exp A1/A (s/s) US$350m (no grow) SEC registered tap of 5.625% 3/1/55 first mortgage bonds (new outstanding amount will be $700m). MWC T+15 until 9/1/54. 6mos par call. Denoms: 2,000 x 1,000. Sale into Canada: Yes - Exemption. Sale into HK/China: No - All Solicitations Prohibited. UOP: to repay short-term debt. Pricing 9/15. Settle 9/26 (T+9). CUSIP: 02361DBC3. ISIN: US02361DBC39. 

VIA  Key/TD/USB (B&D) joint active books.

Announced as $350m no grow, we heard initial price thoughts as T+100 area.

Went straight to launch at $350m tap of 3/1/55 FMBs at T+75.

Ultimately, a $350m deal priced as follows:

$350m tap of 5.625% 3/1/55 at 103.196 5.405% T+75. MW+15. Total outstanding now $700m.

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

-AEE 4.950% due 06/01/33 T+46 bp (G67; $102.662) - $500M pxd May 2023
-AEE 5.625% due 03/01/55 T+73bp ($103.051) - $350M pxd Feb 2025

** Outstanding Mar 55s T+73bp. At the T+75bp pricing level, TAP CONCESSION IS 2BP.

Comps away:

Union Electric Co (A2/A/N/A)
-AEE 5.250% due 04/15/35 T+70bp (G75; $103.625) - $500M pxd 03/26/25 +92
-AEE 5.125% due 03/15/55 T+75bp ($95.497) - $450M pxd Sep 2024

Florida Power & Light Co (Aa2/A+/AA-)
-NEE 5.700% due 03/15/55 T+72bp ($104.326) - $950M pxd Feb 2025

DTE Electric Co (Aa3/A/A+)
-DTE 5.850% due 05/15/55 T+78bp ($105.604) - $500M pxd 05/05/25 +103

Duke Energy Progress LLC (Aa3/A/N/A)
-DUK 5.550% due 03/15/55 T+79bp ($101.113) - $750M pxd Mar 2025

Northern States Pwr-Minn (Aa3/A/A+)
-XEL 5.650% due 05/15/55 T+78bp ($102.703) - $500M pxd 04/28/25 +98

Peco Energy Co (Aa3/A/N/A)
-EXC 5.650% due 09/15/55 T+75bp ($103.17) - $525M pxd 09/03/25 +75

PPL  Electric Utilities (A1/A+/N/A)
-PPL 5.550% due 08/15/55 T+75bp ($101.702) - $500M pxd 08/06/25 +77

Public Service Electric (A1/A/N/A)
-PEG 5.500% due 03/01/55 T+73bp ($101.262) - $500M pxd Feb 2025

Commonwealth Edison Co (A1/A/N/A)
-EXC 5.950% due 06/01/55 T+78bp ($107.056) - $725M pxd 05/12/25 +105

Entergy Louisiana LLC (A2/A/N/A)
-ETR 5.800% due 03/15/55 T+90bp ($103.1) - $750M pxd Jan 2025

Oncor Electric Delivery (A2/A/A)
-ONCRTX 5.800% due 04/01/55 T+85bp ($103.833) - $650M pxd Mar 2025

Puget Sound Energy Inc (A2/A-/A)
-PSD 5.598% due 09/15/55 T+87bp (100.684) - $500M pxd 09/08/25 +88

FINAL BOOKS:

$350m 2055 Tap FMB - $1.600bn (4.57x) - PEAK $1.850bn

[SSA PRICED]

The Export-Import Bank of Korea (“KEXIM”) (EIBKOR) exp Aa2/AA/AA- (s/s/s) US$1.5bn SEC registered 2-part sr notes (3y FRN and 5y FXD). BofA/CACIB/HSBC/JPM (B&D)/MUFG as JBRs/JLMs. Mirae Asset Securities as JLM. Day  Count / Business Day Convention: 3y FRN: ACT/360, Adjusted / Modified Following; 5y FXD: 30/360, Unadjusted / Following. Expected Listing: LSE ISM and SGX-ST. UOP: KEXIM will use the net proceeds from the sale of the Notes for its general operations, including extending foreign currency loans and repayment of its maturing debt and other obligations. Pricing 9/15. Settle 9/22 (T+5).

IPTs: 3y FRN: SOFR+70 area, 5y FXD: T+50 area.

FINAL PRICE GUIDANCE: 3y FRN: SOFR+46#, 5y FXD: T+26#.

LAUNCHED: $500m 3y FRN at SOFR+46, $1bn 5y FXD at T+26.

PRICED:

$500m 9/22/28 FRN at SOFR+46, at 100.

$1bn 3.75% 9/22/30 99.486 3.864% T+26.

[NEW MANDATES & MARKETING]

– American Financial Group, Inc. (Ticker: AFG) has asked BofA Securities, J.P. Morgan, and Wells Fargo Securities to arrange a series of fixed income investor calls for Monday, September 15th, 2025. An SEC-registered senior unsecured notes offering may follow, subject to market conditions.

An electronic presentation has been made available. BofA Securities is coordinating logistics.

Company Participant:

Brian S. Hertzman – Senior Vice President and Chief Financial Officer

Schedule for Monday, September 15th, 2025:

12:00PM – 12:50PM EST; Pre-Registration Link Call #1: https://evercall.co/oacc/66575

1:00PM – 1:50PM EST; Pre-Registration Link Call #2: https://evercall.co/oacc/37294

2:00PM – 2:50PM EST; Pre-Registration Link Call #3: https://evercall.co/oacc/26774

We request all participants pre-register at least 15 minutes prior to each call. Upon registration, participants will receive the dial-in details.

Electronic Investor Presentation Details:

URL: https://dealroadshow.com

Password: AFG2025

Direct Link: https://dealroadshow.com/e/AFG2025

About American Financial Group

American Financial Group, Inc. (“AFG”) is an insurance holding company, based in Cincinnati, Ohio. Through the operations of Great American Insurance Group, AFG is engaged primarily in property and casualty insurance, focusing on specialized commercial products for businesses. Great American’s roots go back to 1872 with the founding of its flagship company, Great American Insurance Company.

– Phillips 66 Company, a subsidiary of Phillips 66 (the “Company” or “PSX”), has asked Mizuho, MUFG, PNC Capital Markets LLC, RBC Capital Markets, Scotiabank, and SMBC Nikko to arrange a series of fixed income investor calls today, Monday, September 15th. An electronic DealRoadshow presentation and recorded voiceover has been made available via details below. An SEC Registered Fixed-to-Fixed Reset Rate Junior Subordinated Notes offering, which is expected to include provisions regarding a coupon floor, with expected ratings of Baa2 (stable) by Moody’s and BBB- (Stable) by S&P may follow, subject to market conditions. Mizuho will coordinate logistics.

Call Schedule for Monday, September 15th:

Call #1: 12:30-1:15pm ET / Registration Link: https://evercall.co/oacc/66144

Call #2: 2:00-2:45pm ET / Registration Link: https://evercall.co/oacc/40463

Call #3: 3:00-3:45pm ET / Registration Link: https://evercall.co/oacc/32271

The Company will be represented by:

Kevin Mitchell – Executive Vice President and Chief Financial Officer

Scott Delmoro – Vice President and Treasurer

Investor Presentation Details:

Direct Link: https://dealroadshow.com/e/PSX2025

OR

Link: https://dealroadshow.com

Passcode: PSX2025

About Phillips 66:

Phillips 66 is uniquely positioned as a leading integrated downstream energy provider operating with Midstream, Chemicals, Refining, Marketing and Specialties, and Renewable Fuels segments. Headquartered in Houston, Texas, Phillips 66 had approximately 13,100 employees and total assets of $75.9 billion as of June 30 ,2025.

Phillips 66 Company is a direct, wholly owned operating subsidiary of Phillips 66.

– Southern Power Company, a subsidiary of The Southern Company (the “Company” or “SPC”), has asked BMO Capital Markets, Mizuho, PNC Capital Markets LLC, and SMBC Nikko to arrange a series of fixed income investor calls today, Monday, September 15th. An electronic DealRoadshow presentation and recorded voiceover has been made available via details below. An SEC Registered senior unsecured notes offering, with expected ratings of Baa1 (Stable) by Moody’s, BBB+ (Stable) by S&P, and BBB+ (Stable) by Fitch may follow, subject to market conditions. Mizuho will coordinate logistics.

Call Schedule for Monday, September 15th:

Call #1: 12:00–12:45pm ET / Registration Link: https://evercall.co/oacc/85487

Call #2: 1:00–1:45pm ET / Registration Link: https://evercall.co/oacc/21138

Call #3: 2:00–2:45pm ET / Registration Link: https://evercall.co/oacc/68051

Call #4: 3:00–3:45pm ET / Registration Link: https://evercall.co/oacc/32822

The Company will be represented by:

Gary Kerr – Senior Vice President, CFO & Treasurer (Southern Power)

Jon Haygood – Assistant Treasurer (Southern Company & Southern Power)

Investor Presentation Details:

Direct Link: https://dealroadshow.com/e/SPC2025

OR

Link: https://dealroadshow.com

Passcode: SPC2025

About Southern Power Company:

Southern Power Company is an operating public utility company which develops, constructs, acquires, owns, operates and manages power generation assets, including renewable energy projects, and sells electricity at market-based rates in the wholesale market.

– The Carlyle Group Inc. (the “Company”) (ticker: CG), rated A- (stable) by S&P and A- (stable) by Fitch, has asked Citigroup, Goldman Sachs & Co. LLC, J.P. Morgan, Morgan Stanley and Wells Fargo Securities to arrange a series of fixed income investor calls to be conducted today, Monday, September 15th. An SEC registered, senior unsecured 10-year notes offering may follow, subject to market conditions. An online investor presentation has been made available for the calls.

Citigroup is coordinating logistics.

The Company will be represented by:

John Redett - Chief Financial Officer

Charles Andrews - Chief Accounting Officer

Daniel Harris - Head of Public Investor Relations

Schedule for Monday, September 15, 2025:

12:00PM – 12:45PM ET; Pre-Registration Link: {https://evercall.co/oacc/35622}

1:00PM – 1:45PM ET; Pre-Registration Link: {https://evercall.co/oacc/34994}

2:00PM – 2:45PM ET; Pre-Registration Link: {https://evercall.co/oacc/41600}

Investor Presentation:

Direct Link: {https://dealroadshow.com/e/CG2025}

Entry Code: CG2025

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