Commentary & Deal Flow

CFR CREDIT CLOSE: Sept ’25 Now #6 All-Time; Realty Income Coupon Ranks

The month added another $2.050bn (4 deals) to its massive total today, moving it to #6 on the All-Time Largest Volume Months List.  We’ll see what comes in during the final 3 days of September to push it further up the list. A driving factor remains low coupons and spreads.  Today both Realty Income tranches ranked in low coupons.

Realty Income's 3yr becomes just the 2nd deal behind HD (9/8/25) to break 4% this year and ranks in the top 5 back to 2023

Realty Income's 7yr ties for 1st with 3 other deals for the lowest coupon in 2025.

HERE'S TODAY'S RUNDOWN:

[REALTY INCOME]

Realty Income Corp (O) exp A3/A- (s/s) US$800m SEC registered 2-part sr notes (long 3y FXD due 2/1/29 and long 7y FXD due 2/1/33). MWC then 1mo par call on L3y and 2mos on L7y. Denoms: 2,000 x 1,000. Sale into Canada: Yes - Exemption. UOP: General corporate purposes, which may include, among other things, the repayment or repurchase of the Company's indebtedness (including the approximately $550.0 million of outstanding 2025 notes and/or borrowings under its revolving credit facilities and commercial paper programs), foreign currency swaps or other hedging instruments, the development, redevelopment and acquisition of additional properties, acquisition or business combination transactions, and the expansion and improvement of certain properties in its portfolio. Pricing 9/25. Settle 10/6 (T+7).  CUSIP: L3y: 756109CW2, L7y: 756109CX0. ISIN: L3y: US756109CW23, L7y: US756109CX06.

VIA Barc/BofA/Miz/TD/WFS (B&D) joint active books. BNP/GS/JPM/RBC/Regions/Sant/Scotia as passive. BBVA, Citi, DB, MS, PNC, UBS, USB, BMO, BNY, Citizens, Huntington, TSI, Ramirez, Academy as cos.

Announced as a benchmark, we heard initial price thoughts as L3y T+75 area, L7y T+95 area.

Went straight to launch at $400m L3y at T+48. $400m L7y at T+73.

Ultimately, a $800m deal priced as follows:

$400m 3.95% 2/1/29 99.412 4.143% T+48. MW+10.

$400m 4.50% 2/1/33 98.871 4.685% T+73. MW+15.

 As for r/v, outstanding O was quoted as follows:
-O 3.650% due 01/15/28 T+44bp (G44; $99.119) - $550M pxd Nov 2017
-O 2.200% due 06/15/28 T+41bp (G41; $95.34) - $497.079M exch Oct 2021
-O 4.000% due 07/15/29 T+40bp (G46; $99.53) - $397.705M exch Dec 2023
-O 4.850% due 03/15/30 T+46bp (G50; $102.567) - $600M pxd Jan 2023
-O 5.625% due 10/13/32 T+41bp (G67; $106.119) - $750M pxd Oct 2022
-O 2.850% due 12/15/32 T+43bp (G65; $89.39) - $699.188M exch. Oct 2021
-O 4.900% due 07/15/33 T+51bp (G70; $101.5) - $600M pxd Apr 2023
-O 5.125% due 04/15/35 T+72bp (G77; $101.781) - $600M pxd 04/01/25 +118

** L7y – Jul 33s G70; call new L7y f/v flat to that at T+70bp. At the T+73bp pricing level, L7Y CONCESSION IS 3BP.

** L3y – Mar 30s G50; call new L3y flat to that = T+50bp.  

Or going off L7y /v T+70bp; minus 20bp L3s/L7s curve = T+50bp. 

At the T+48bp pricing level, L3Y CONCESSION IS NEG 2BP.

Comps away: 

NNN REIT Inc (Baa1/BBB+/WD)
-NNN 4.300% due 10/15/28 T+58bp (G58; $100.284) - $400M pxd Sep 2018
-NNN 2.500% due 04/15/30 T+68bp (G70; $92.227) - $400M pxd Feb 2020
-NNN 4.600% due 02/15/31 T+78bp (G75; $100.444) - $500M pxd 06/24/25 +90
-NNN 5.500% due 06/15/34 T+83bp (G95; $103.498) - $500M pxd May 2024

WP Carey Inc (Baa1/BBB+/N/A)
-WPC 3.850% due 07/15/29 T+66bp (G72; $98.148) - $325M pxd Jun 2019
-WPC 4.650% due 07/15/30 T+77bp (G78; $100.659) - $400M pxd 07/07/25 +90
-WPC 2.450% due 02/01/32 T+55bp (G85; $87.731) - $350M pxd Oct 2021
-WPC 5.375% due 06/30/34 T+85bp (G96; $102.514) - $400M pxd Jun 2024

Agree LP (Baa1/BBB+/A-)
-ADC 2.000% due 06/15/28 T+59bp (G59; $94.393) - $350M pxd May 2021
-ADC 2.900% due 10/01/30 T+66bp (G66; $93.391) - $350M pxd Aug 2020
-ADC 4.800% due 10/01/32 T+55bp (G81; $100.531) - $300M pxd Aug 2022
-ADC 5.600% due 06/15/35 T+85bp (G88; $104.422) - $400M pxd 05/14/25 +117

Essential Proper (Baa2/BBB-/BBB)
-EPRT 2.950% due 07/15/31 T+112bp (G104; $90.513) - $400M pxd Jun 2021
-EPRT 5.400% due 12/01/35 T+119bp (G119; $100.377) - $400M pxd 08/18/25 +128

FINAL BOOKS:
$400m L3yr - $1.400bn (3.50x) - PEAK $1.900bn
$400m L7yr - $1.200bn (3.00x) - PEAK $1.800bn

[CNHI INDUSTRIAL CAPITAL LLC]

CNH Industrial Capital LLC “CNHI” ( Baa2/BBB+/BBB+ s/n/n) US$500m (up from $400m) SEC registered 5y FXD sr notes due 10/16/30. MWC then 1mo par call. 101 CoC. Guarantor: CNH Industrial Capital America LLC and New Holland Credit Company, LLC. Denoms: 2,000 x 1,000. Sale into Canada: Yes - Exemption. UOP: gcp. Pricing 9/25. Settle 9/29 (T+2). CUSIP: 12592BAV6. ISIN: US12592BAV62. 

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

Announced with $400m size, we heard initial thoughts as T+100 area.

Guidance came in at T+78#. Upsized at launch to $500m.

Ultimately, a $500m deal priced as follows:

$500m 4.50% 10/16/30 99.765 4.552% T+78. MW+15.

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

-CNHI 4.550% due 04/10/28 T+57bp (G56; $100.73) - $600m pxd APRL 2023
-CNHI 5.500% due 01/12/29 T+57bp (G68; $103.43) - $500m pxd SEPT 2023
-CNHI 5.100% due 04/20/29 T+55bp (G64; $102.49) - $600m pxd MAR 2024

*** April ‘29 G64, add 10bp for ‘29/’30 curve gets f/v to T+75bp. At the T+78bp pricing level, CONCESSION IS 3BP.

FINAL BOOK:

$500m 5yr - $925m (1.85x) - PEAK $1.250bn

[BLACK HILLS CORP]

Black Hills Corp (BKH) exp Baa2/BBB+ (s/s) US$450m (no grow) SEC registered long 5y FXD sr notes due 1/31/31. MWC then 1mo par call. CoC: Yes.. Denoms: 2,000 x 1,000.  Sale into Canada: Yes - via exemption. Roadshow details: Direct Link: www.netroadshow.com/nrs/home/#!/?show=a3b336d5Site: www.netroadshow.com | Entry code: BKHBOND25. Pricing 9/25. Settle 10/2 (T+5). 

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

Announced as $450m WNG, we heard initial thoughts as T+105a.

The deal went straight to launch  -  $450m at T+80bp.

PRICED: $450m 4.55% 1/31/31 99.935 4.565% T+80. MW+15.

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

BKH 6.000% due 01/15/35 T+99bp (G106; $106) - $450m pxd MAY 2024

*5yr – Market players we checked in with seemed to be coming in flat on this one. Jan ‘35s G106 – minus 25ish curve = T+80.  CONCESSION FLAT.

FINAL BOOK: 

$450m L5yr - $1.550bn (3.44x) - we didn’t catch a peak on this one.

[FRANKLIN BSP CAPITAL CORP]

Franklin BSP Capital Corp “FRBP” (Baa3/BBB- s/s) by Moody's/Fitch, US$300m 144A/Reg S with reg rights 5y sr notes due 10/2/30. MWC then 1mo par call. 100 CoC. First Pay: 4/2/26. Denoms: 2,000 x 1,000. Sale into Canada: Yes - Exemption. UOP: general corporate purposes, including the repayment of indebtedness and making investments in portfolio companies. Marketing: www.netroadshow.com/nrs/home/#!/?show=f5a56af2 Passcode: FRBP9863. Pricing 9/25. Settle 10/2 (T+5). 144A CUSIP: 35250VAC8. 144A ISIN: US35250VAC81. 

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

Announced with $300m size, we heard initial thoughts as T+265 area. 

Went straight to launch at T+250.

Ultimately, a $300m deal priced as follows:

$300m 6.00% 10/2/30 98.844 6.273% T+250. MW+40.

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

-FRBP 7.200% due 06/15/29 T+225bp (G233; $103.79) - $399m pxd MAR 2025

*** Jun ‘29 G233, add 10bp for ‘29/’30 curve gets f/v to T+243bp. At the T+250bp pricing level, CONCESSION IS 7BP.

COMPS AWAY:

Goldman Sachs BDC Inc (Baa3/NR/BBB-)
-GSBD 5.650% due 9/9/30 T+163bp (G164; $101.05) - $400m pxd 09/04/25 +200

Goldman Sachs Private Credit Corp (Baa3/NR/BBB-)
-GSCRED 6.250% due 5/6/30 T+163bp (G166; $103.36) - $600m pxd APRL 2025 

Golub Capital Private Credit Fund (Baa3/NR/BBB-)
-GCRED 5.450% due 8/15/28 T+163bp (G166; $100.39) - $500m pxd 07/16/25 +183
-GCRED 5.875% due 5/01/30 T+175bp (G175; $101.38) - $500m pxd MAY 2025

Main Street Capital Corp (NR/BBB-/BBB-)
-MAIN 5.400% due 8/15/28 T+164bp (G164; $100.24) - $350m pxd 08/13/25 +175

North Have Private Income Fund LLC (Baa3/NR/BBB-)
-NHPIFS 5.125% due 9/25/28 T+169bp (G169; $99.37) - $300m pxd 09/18/25 +183
-NHPIFS 5.750% due 2/01/30 T+199bp (G203; $99.94) - $300m pxd MAR 2025

Oaktree Strategic Credit Fund (Baa3/NR/BBB-)
-OAKSCF 6.190% due 7/15/30 T+194bp (G196; $101.95) - $400m pxd 07/08/25 +220

Oaktree Specialty Lending Fund (Baa3/NR/BBB-)
-OCSL 6.340% due 2/27/30 T+249bp (G253; $100.29) - $300m pxd FEB 2025

FS KKR Capital Corp (Baa3/NR/BBB-)
-FSK 6.125% due 1/15/31 T+258bp (G255; $99.01) - $400m pxd 09/18/25 +270

Capital Southwest Corp (Baa3/NR/BBB-)
-CSWC 5.950% due 9/18/30 T+227bp (G227; $99.62) - $350m pxd 09/09/25 +250

FINAL BOOK:

$300m 5yr - $725m (2.42x) - PEAK $850m 

[LATAM PRICED]

– Aegea Finance S.à r.l. (Guarantor: Aegea Saneamento e Participações S.A.) (Ticker: AEGEBZ) exp BB-/BB by S&P/Fitch, US$750m 144A/Reg S long 10NC5 Blue Sr Notes due 1/20/36. Joint-Bookrunners: Bradesco BBI, BTG Pactual, Citigroup, Itaú BBA, J.P. Morgan, Morgan Stanley (B&D), Santander. Guarantor: Aegea Saneamento e Participações S.A. Opt. Redemption: Make Whole Call; 1st call date January 20, 2031. First Interest Payment Date: July 20, 2026. Denomination: $200k x $1k. Sales into Canada: Yes, via exemption. Listing: Luxembourg Stock Exchange. Governing Law: State of New York.

Use of Proceeds: To repay certain of our outstanding indebtedness, including the $250mm capped tender offer of the 2029 notes, and the remainder, if any, for general corporate purposes. We intend to allocate an amount equal to the net proceeds of the Notes for investments in one or more Eligible Blue Projects as described in the Sustainable Financing Framework. Marketing: Direct Link: www.netroadshow.com/nrs/home/#!/?show=a33de809 OR visit www.netroadshow.com and enter the entry code: Aegea2025. Pricing 9/25. Settle 10/6 (T+7). 144A CUSIP: 00775CAE6. 144A ISIN: US00775CAE66.

IPTs: 8% area.

GUIDANCE: 7.75% Area (+/-12.5bps)
LAUNCHED: $750m L10nc5 at 7.625%.

PRICED: $750m 7.625% @ 99.938 yld 7.625%. MW T+50bp.

– Vamos Europe (Guarantor: Vamos Locação de Caminhões, Máquinas e Equipamentos S.A.), exp BB-/ BB-, 144A/Reg S $300m long 5-year non-call 2 due 01/26/2031. Morgan Stanley (B&D), UBS, JPM, Bradesco BBI, BTG Pactual, Santander as global coordinators. Bladex, BNP Paribas, HSBC, Itaú, MUFG, Natixis and XP as joint bookrunners. First Interest Payment Date: 01/26/2026. Opt. Redemption: Make Whole Call; 1st call date 01/26/2028.

Use of Proceeds: To repay certain of our outstanding indebtedness and the remainder, if any, for general corporate purposes. Denoms: $200k x $1k. Sales into Canada: Yes, via exemption. Listing: Luxembourg Stock Exchange. Governing Law: New York.

Marketing: Direct Link: www.netroadshow.com/nrs/home/#!/?show=9358598b OR Visit www.netroadshow.com and enter the entry code: VAMOS2025. 144A ISIN / CUSIP: US92049NAA72 / 92049NAA7.

Price 09/25. Settle 10/02 (T+5).

IPTs: Mid-9%s

GUIDANCE: 9.25%(#)

LAUNCH: $300m @9.25%

PRICED: $300m 9.20% 01/26/2031 @ 99.692 yld 9.25%. MWC T+50bp

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