Commentary & Deal Flow

CFR CREDIT CLOSE: Supply Returns: 12 deals/$24.485bn: PG 7s/10s #1 2009-25

   The supply spigot finally opened up today with 12 issuers pricing $24.485bn – the biggest deal and volume day since 9/8/25. Not surprisingly, Procter & Gamble printed with the lowest new issue 7yr and 10yr spreads.

   
Until today, the top tick for October was $10.600bn (volume)/6 deals. Today’s $24.485bn/12 deals is the largest volume and deal day since 9/8/25.

    The average estimate for this week was $25.839bn.  Today’s $24.485bn leaves the week just $1.354bn shy of that estimate.

    Meanwhile, you know when PG pops up you should pull up the Low Spread tables.  PG did not disappoint today, setting a new 2009-2025 record for lowest 7yr new issue spread (T+32bp) and tying itself in 10yrs with a T+37bp landing.

** The PPG $100m 3.750% due 3/15/28 is a small tap. So we consider PG the record holder for a new issue in this category **

PG 10yr at T+37bp ties the 2009-2025 10yr Low Spread record - the same level PG cleared in Jan and Oct 2024:

Several low coupon notables across the curve today:

HERE'S TODAY'S RUNDOWN:

[AMPHENOL] 

Amphenol Corp (APH) exp A3/A- (s/s) US$7.5bn SEC registered 7-part sr notes (2y FXD and/or FRN due 11/15/27, 3y FXD due 11/15/28, 5y FXD due 11/15/30, Long 7y FXD due 2/15/33, L10y FXD due 2/15/36 and 30y FXD due 11/15/55). MWC on FXD. 1mo par call on 3y FXD and 5y, 2mos on L7y, 3mos on L10y and 6mos on 30y. 101 CoC. Denoms: 2,000 x 1,000. Governing Law: State of New York. UOP: Together with cash on hand, borrowings under the Delayed Draw Term Loan Facilities, and/or borrowings under APH’s U.S. commercial paper program, to pay the cash consideration for the CCS Acquisition and payment of fees and expenses related to the CCS Acquisition. Marketing: Direct Link: www.netroadshow.com/nrs/home/#!/?show=573c0103 Passcode: PW: APH2025. Pricing 10/27. Settle 11/10 (T+10). CUSIP: 2y FXD: 032095AW1, 2y FRN: 032095AV3, 3y: 032095AX9, 5y: 032095AY7, L7y: 032095AZ4, L10y: 032095BA8, 30y: 032095BB6. ISIN: 2y FXD: US032095AW19, 2y FRN: US032095AV36, 3y: US032095AX91, 5y: US032095AY74, L7y: US032095AZ40, L10y: US032095BA89, 30y: US032095BB62.

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

   Announced as benchmark (size chatter $6bn +), final size came in at $7.5bn with price progression as follows:

 - 2yr FRN – IPT Seqv; GDNC S+53#; PXD $500m 11/15/27 FRN at SOFR+53, at 100.
- 2yr FXD – IPT T+60a; GNDC T+33#; PXD $750m 3.80% 11/15/27 99.932 3.835% T+33.
- 3yr FXD – IPT T+70a; GDNC T+43#; PXD $750m 3.90% 11/15/28 99.892 3.938% T+43.
- 5yr FXD – IPT T+80a; GDNC T+53#; PXD $1bn 4.125% 11/15/30 99.892 4.149% T+53.
- L7yr FXD - IPT T+90a; GDNC T+63#; PXD $1.25bn 4.40% 2/15/33 99.877 4.421% T+63.
- L10yr FXD – IPT T+95a; GDNC T+68#; LNCH T+65; PXD $1.6bn 4.625% 2/15/36 99.893 4.639% T+65.
- 30yr FXD – IPT T+110a; GDNC T+78#; LNCH T+75;  PXD $1.65bn 5.30% 11/15/55 99.835 5.311% T+75.

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

- APH 4.375% due 06/12/28 T+39bp (G39; $101.12) - $750m pxd 6/9/25 +43
- APH 2.800% due 02/15/30 T+45bp (G49; $94.98) - $900m pxd SEPT 2019
- APH 5.000% due 01/15/35 T+59bp (G65; $102.83) - $750m pxd OCT 2024
- APH 5.375% due 11/15/54 T+71bp ($100.99) - $500m pxd OCT 2024

• L10YR – APH Jan ‘35s G65;  + 3bp curve to Feb ’36 = T+68bp. Guidance was 68#, but the 65bp inside guidance launch spread level puts the  L10yr CONCESSION AT NEG 3BP. 
•  30YR – 10yr f/v T+68 + 15bp 10s/30s curve = T+83bp; At the T+75bp pricing level, 30YR CONCESSION IS NEG 8BP. 
• 7YR - 10yr FV T+68bp Minus 5bp 7s/10s = T+63bp At the T+63bp pricing level, 7YR CONCESSION IS FLAT. 
•  5YR – 10yr f/v T+68 minus 15bp 5s/10s curve = T+53bp.  At the T+53bp pricing level, 5YR CONCESSION IS FLAT. 
• 3YR – 5yr f/v 53 minus 10bp 3s/5s curve = T+43bp.  At the T+43bp pricing level, 3YR CONCESSION IS FLAT. 
• 2YR - 3yr f/v T+43 curve adjusting – minus 10bp 2s/3s = T+33bp. At the T+33bp pricing level, 2YR CONCESSION IS FLAT. 

Comps away:

Honeywell Intl (A2/A/A s/n/n)
- HON 4.700% due 02/01/30 T+46bp (G50; $102.28) - $1bn pxd JUL 2024
- HON 5.000% due 03/01/35 T+67bp (G72; $102.22) - $1.45bn pxd FEB 2024
- HON 5.250% due 03/01/54 T+80bp (G81; $97.83) - $1.75bn pxd FEB 2024

Tyco Electronics Group SA (A3/A-/A-)
- TEL 4.500% due 02/09/31 T+59bp (G56; $101.31) - $450m pxd 4/29/25 +83
- TEL 5.000% due 05/09/35 T+76bp (G80; $101.62) - $450m pxd 4/29/25 +97

Johnson Controls Intl plc/Tyco Fire & Security Finance (Baa1/BBB+)
- JCI 4.900% due 12/01/32 T+48bp (G70; $102.32) - $650m pxd SEPT 2022

FINAL BOOKS:

$500m 2yr FRN - $1.35bn (2.70x) - PEAK $1.575BN

$750m 2yr FXD - $2.30bn (3.07x) - PEAK $2.65BN

$750m 3yr - $3.20bn (4.27x) - PEAK $3.65BN

$1bn 5yr - $4.60bn (4.60x) - PEAK $5.425BN

$1.25bn L7yr - $4.75bn (3.80x) - PEAK $5.50BN

$1.6bn L10yr - $5.30bn (3.31x) - PEAK $7.20BN 
$1.65bn 30yr - $7.70bn (4.67x) - PEAK $9.75BN 

[PHILIP MORRIS] 

Philip Morris International Inc (PM) exp A2/A-/A (s/p/s) US$3.5bn SEC registered 5-part sr notes (3y FXD and/or FRN due 10/27/28, 5y FXD due 10/29/30, 7y FXD due 10/29/32 and 10y FXD due 10/29/35). MWC on FXD tranches. 1mo par call on 3y and 5y, 2mos on 7y and 3mos on 10y. Denoms: 2,000 x 1,000. Sales into Canada: Yes, via exemption. UOP: General corporate purposes; to repay all or a portion of outstanding commercial paper and refinance outstanding U.S. dollar denominated 4.875% Notes due 2026, U.S. dollar denominated 2.750% Notes due 2026 or euro denominated 2.875% Notes due 2026; or to meet working capital requirements. Pricing 10/27. Settle 10/29 (T+2). 

VIA BBVA/BofA/Citi (B&D 5s/7s)/DB/WFS (B&D 3s/10s) joint active books.

Announced with benchmark size,final size came in at $3.5bn with price progression as follows:

3yr FRN - IPT Seqv; GDNC Seqv; PXD $300m  10/27/28 FRN at SOFR+66, at 100.

3yr FXD - IPT T+70a; GDNC T+43#; PXD $750m 3.875% 10/27/28 99.855 3.927% T+43. MW+10.

5yr - IPT T+85 area; GDNC T+58#; PXD $750m 4.00% 10/29/30 99.155 4.189% T+58. MW+10.

7yr - IPT T+95 area; GDNC T+68#; PXD $850m 4.25% 10/29/32 98.743 4.461% T+68. MW+15.

10yr - IPT T+105 area; GDNC T+78#; PXD $850m 4.625% 10/29/35 98.850 4.771% T+78. MW+15.

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

-PM 4.125% due 04/28/28 T+45bp (G45; $100.37) - $750m pxd APRL 2025
-PM 4.625% due 11/01/29 T+50bp (G56; $101.77) - $750m pxd OCT 2024
-PM 4.375% due 04/30/30 T+60bp (G63; $100.57) - $750m pxd APRL 2025
-PM 4.750% due 11/01/31 T+72bp (G63; $102.03) - $750m pxd OCT 2024
-PM 4.900% due 11/01/34 T+70bp (G77; $101.29) - $750m pxd OCT 2024
-PM 4.875% due 04/30/35 T+73bp (G77; $100.94) - $600m pxd APRL 2025

*** 10yr: April ‘35 G77, add 1bp for curve gets f/v to T+78bp. At the T+78bp pricing level, 10yr CONCESSION IS FLAT.

*** 7yr: 10y f/v at T+78, take away 10bp for IPT curve gets f/v to T+68bp. At the T+68bp pricing level, 7yr CONCESSION IS FLAT.

*** 5yr: 7y f/v at T+68, take away 10bp for IPT curve gets f/v to T+58bp. At the T+58bp pricing level, 5yr CONCESSION IS FLAT.

*** 3yr: 5y f/v at T+58, take away 15bp for IPT curve gets f/v to T+43bp. At the T+43bp pricing level, 3yr CONCESSION IS FLAT.

FINAL BOOKS:

$300m 3yr FRN - $950m (3.17x) - PEAK $1.000bn

$750m 3yr FXD - $2.850bn (3.80x) - PEAK $3.300bn

$750m 5yr - $3.000bn (4.00x) - PEAK $3.500bn

$850m 7yr - $3.150nb (3.71x) - PEAK $3.800bn

$850m 10yr - $4.750bn (5.59x) - PEAK $5.400bn

[HCA] 

HCA Inc (HCA) exp Baa2/BBB- (s/s) US$3.25bn SEC registered 4-part sr notes (5y FXD due 11/15/30, 7y FXD due 11/15/32, 10y FXD due 11/15/35 and 30y FXD due 11/15/55). MWC then 1mo par call on 5y, 2mos on 7y, 3mos on 10y and 6mos on 30y. 101 CoC. Guarantor: HCA Healthcare Inc. Denoms: 2,000 x 1,000. Sale into Canada: Yes - Exemption. UOP: HCA intends to use proceeds for general corporate purposes, which may include the repayment of outstanding borrowings under the commercial paper program, and may use a portion of the net proceeds from this offering for the redemption of all or a portion of the $1.500 billion outstanding aggregate principal amount of HCA Inc.’s 5.875% senior notes due 2026. Pricing 10/27. Settle 10/31 (T+4). CUSIP: 5y: 404119DD8, 7y: 404119DE6, 10y: 404119DF3, 30y: 404119DH9. ISIN: 5y: US404119DD87, 7y: US404119DE60, 10y: US404119DF36, 30y: US404119DH91.

VIA Citi (B&D on 10y)/JPM (B&D on 30y)/Miz (B&D on 7y)/WFS (B&D on 5y) joint active books.

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

5yr - IPT - T+110 area; GDNC T+75#; LNCH T+72; PXD $500m 4.30% 11/15/30 99.845 4.334% T+72. MW+15.

7yr - IPT - T+120 area; GDNC T+88#; LNCH T+85; PXD $1bn 4.60% 11/15/32 99.766 4.639% T+85. MW+15.

10yr - IPT T+130 area; GDNC T+98#; LNCH T+95; PXD $1bn 4.90% 11/15/35 99.645 4.945% T+95. MW+15.

30yr - IPT T+150 area; GDNC T+118#; LNCH T+115; PXD $750m 5.70% 11/15/55 99.697 5.721% T+115. MW+20.

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

-HCA 5.250% due 03/01/30 T+70bp (G74; $103.53) - $750m pxd FEB 2025
-HCA 3.500% due 09/01/30 T+77bp (G77; $96.09) - $2.7bn pxd FEB 2020
-HCA 5.500% due 03/01/32 T+75bp (G81; $105.00) - $750m pxd FEB 2025
-HCA 5.750% due 03/01/35 T+91bp (G96; $105.94) - $1.5bn pxd FEB 2025
-HCA 6.200% due 03/01/55 T+118bp ($105.94) - $1.25bn pxd FEB 2025

*** 30yr: Mar ‘55 T+118, call f/v at T+118bp. At the T+115bp pricing level, 30yr CONCESSION IS NEG 3BP.

*** 10yr: Mar ‘35 G96, add 2bp for curve gets f/v to T+98bp. Also 30y f/v at T+118, take away 20bp for IPT curve gets f/v to T+98bp. At the T+95bp pricing level, 10yr CONCESSION IS NEG 3BP.

*** 7yr: 10y f/v at T+98, take away 10bp for IPT curve gets f/v to T+88bp. AT the T+85bp pricing level, 7yr CONCESSION IS NEG 3bp.

*** 5yr: Mar ‘30 G74, add 3bp for curve gets f/v to T+77bp. At the T+72bp pricing level, 5yr CONCESSION IS NEG 5BP.

FINAL BOOKS:

$500m 5yr - $3.300bn (6.60x) - PEAK $8.200bn

$1.0bn 7yr - $3.800bn (3.80x) - PEAK $6.600bn

$1.0bn 10yr - $3.800bn (3.80x) - PEAK $8.800bn

$750m 30yr - $2.300bn (3.07x) - PEAK $8.800bn

[SANOFI] 

Sanofi SA (SANFP), exp Aa3/AA/AA (s/s/s) by Moody's/S&P/Scope, US$3bn SEC registered 5-part sr notes (2y FXD and/or FRN due 11/3/27, 3y FXD and/or FRN due 11/3/28 and 7y FXD due 11/3/32). MWC on FXD tranches. 1mo par call on 3y and 2mos on 7y. Barc/BNP/BofA as joint global coordinators. Denominations: 2,000 x 1,000. Law / Listing State of New York / None. Sale into Canada Yes - Exemption. UOP: General Corporate Purposes. Pricing 10/27. Settle 11/3 (T+5). CUSIP: 2y FXD: 801060AE4, 2y FRN: 801060AF1, 3y FXD: 801060AG9, 3y FRN: 801060AH7, 7y: 801060AJ3. ISIN: 2y FXD: US801060AE44, 2y FRN: US801060AF19, 3y FXD: US801060AG91, 3y FRN: US801060AH74, 7y: US801060AJ31. 

VIA active joint books: Barc/BNP/BofA (B&D)/JPM/MUFG/MS/Natixis.

Announced as benchmark (size chatter $2bn+), final size came in at $3bn with price progression as follows:

2yr FRN – IPT Seqv; GDNC S+46#; PXD
2yr FXD – IPT T+45a; GDNC T+25#; PXD
3y FRN - IPT Seqv; GDNC S+54#; PXD
3yr FXD – IPT T+50a; GDNC T+30#; PXD
7yr FXD – IPT T+70a; GDNC T+45#; PXD

Sanofi is a rarity in the US IG arena, with its last trip to the market in 2018. As such, only one deal remains outstanding in the complex:

SANFP 3.625% due 06/19/28 T+24bp (G24; $99.67) - $1.00bn pxd JUN 2018.

However, we heard comps away were the main focus - specifically the recent trade from Eli Lilly. 

Eli Lilly & Co (Aa3/A+)
- LLY 4.000% due 10/15/28 T+28bp (G28; $100.54) - $1.0bn pxd 8/18/25 +28
- LLY 4.250% due 03/15/31 T+48bp (G45; $100.68) - $750m pxd 8/18/25 +40
- LLY 4.550% due 10/15/32 T+50bp (G51; $101.40) - $1.0bn pxd 8/18/25 +48
- LLY 4.900% due 10/15/35 T+56bp (G57; $102.45) - $1.25bn pxd 8/18/25+57

LLY minus 3bp was considered f/v.  

• 3YR -  LLY 10/28s G28, minus 3bp = T+25bp.  At the T+30bp pricing level, 3YR CONCESSION IS 5BP .
• 2YR  - SANFP 3yr f/v T+25bp, minus 5bp curve at IPT = T+20bp.  At the T+25bp pricing level, 2YR CONCESSION IS 5BP. 
• 7YR - LLY ‘32s G51; minus 3bp = T+48bp.  At the T+45bp pricing level, 7YR CONCESSION IS NEG 3BP. 

OTHER COMPS AWAY: 

Novartis Capital Corp (Aa3/AA-)
- NOVNVX 2.000% due 02/14/27 T+20bp (G14; $97.87) - $1.25bn pxd FEB 2020
- NOVNVX 3.800% due 09/18/19 T+25bp (G31; $99.73) - $1.00bn pxd SEPT 2024
- NOVNVX 2.200% due 08/14/30 T+33bp (G34; $92.40) - $1.5bn pxd FEB 2020
- NOVNVX 4.000% due 09/18/31 T+43bp (G35; $99.66) - $850m pxd SEPT 2024
- NOVNVX 4.200% due 09/18/34 T+36bp (G43; $98.69) - $1.10bn pxd SEPT 2024

Roche Holdings (Aa2/AA/AA)
- ROSW 5.338% due 11/13/28 T+37bp (G37; $104.02) - $1.25bn pxd NOV 2023
- ROSW 5.489% due 11/13/30 T+43bp (G43; $106.40) - $1.25bn pxd NOV 2023
- ROSW 4.985% due 03/08/34 T+40bp (G53; $103.80) - $1.25bn pxd MAR 2024
- ROSW 4.952% due 09/09/34 T+53bp (G52; $101.07) - $1.00bn pxd SEP 2024

AstraZeneca Finance LLC (A1/A+)
- AZN 4.800% due 02/26/27 T+26bp (G20; $101.23) - $1.25bn pxd FEB 2024
- AZN 4.875% due 03/03/28 T+30bp (G31; $102.26) - $1.10bn pxd FEB 2023
- AZN 1.750% due 05/28/28 T+27bp (G27; $95.05)  - $1.75bn pxd MAY 2021
- AZN 4.850% due 02/26/29 T+30bp (G40; $102.79) - $1.25bn pxd FEB 2024
- AZN 4.900% due 03/03/30 T+40bp (G44; $103.31) - $650m pxd FEB 2023
- AZN 4.900% due 02/26/31 T+45bp (G43; $103.80) - $1.00bn pxd FEB 2024
- AZN 4.875% due 03/03/33 T+30bp (G50; $103.34) - $500m pxd FEB 2023
- AZN 5.000% due 02/26/34 T+38bp (G51; $104.02) - $1.5bn pxd FEB 2024  

FINAL BOOKS:

$500m 2yr FRN - $1.30bn (2.60x) - PEAK $1.40BN

$400m 2yr FXD - $1.10bn (2.75x) - PEAK $1.20BN

$500m 3yr FRN - $1.15bn (2.30x) - PEAK 1.20BN

$400m 3yr FXD - $1.30bn (3.25x) - PEAK $1.30BN 
$1.2bn 7yr - $2.50bn (2.08x) - PEAK $3.100BN 

[PROCTER & GAMBLE] 

The Procter & Gamble Co (PG) exp Aa3/AA- (s/s) US$1.25bn SEC Registered 2-part sr notes (7y FXD due 11/3/32 and 10y FXD due 11/3/35). MWC. Denoms: 2,000 x 1,000. Sale into Canada: No. UOP: gcp. Pricing 10/27. Settle 11/3 (T+5). CUSIP: 7y: 742718GP8, 10y: 742718GQ6. ISIN: 7y: US742718GP88, 10y: US742718GQ61. 

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

   Announced as benchmark final size came in at $1.25bn with price progression as follows:

  -  7yr – IPT 55a; GDNC 32#; PXD $750m 4.10% 11/3/32 99.916 4.114% T+32.

  -  10yr – IPT 60a; GDNC 37#; PXD $500m 4.35% 11/3/35 99.831 4.371% T+37. 

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

- PG 4.600% due 05/01/35 T+29bp (G31; $102.31) - $550m pxd 4/28/25 +43
- PG 4.550% due 10/24/34 T+25bp (G31; $102.12) - $500m pxd OCT 2024
- PG 4.050% due 05/01/30 T+25bp (G28; $100.69) - $700m pxd 4/28/25 +28

** 10yr May ‘35s G31; call f/v T+32 with a smidge of curve. At the T+37bp pricing level, 10YR CONCESSION IS 5BP

** 7yr – 10yr f/v T+32bp.  Minus 5bp 7s/10s curve = T+28bp.  At the T+32bp pricing level, 7YR CONCESSION IS 5BP.

FINAL BOOKS: 

$750m 7yr - $1.7bn (2.27x) - PEAK $2.00BN
$500m 10yr - $1.20bn (2.40x) - PEAK $2.00BN 

[SOUTHWEST AIRLINES] 

Southwest Airlines Co (LUV) exp Baa2/BBB/BBB+ (s/n/n) US$1.25bn SEC registered 2-part sr notes (3y FXD due 11/15/28 and 10y FXD due 11/15/35). MWC then 1mo par call on 3y and 3mos on 10y). 101 CoC. Denoms: 2,000 x 1,000. Sale into Canada: Yes - Exemption. UOP: general corporate purposes, which may include, but are not limited to, repayment or redemption of indebtedness or other corporate obligations. Marketing: www.netroadshow.com/nrs/home/#!/?show=7626b88b. Pricing 10/27. Settle 11/3 (T+5). CUSIP: 3y: 844741BL1, 10y: 844741BM9. ISIN: 3y: US844741BL17, 10y: US844741BM99. 

    VIA BofA/Citi/GS (B&D on 10y)/JPM/MS (B&D on 3y) joint active books.

    Announced as benchmark, final size came in at $1.25bn with price progression as follows:

    * 3yr – IPT 115a; STL T+88bp; PXD
    * 10YR – IPT 155a; STL T+128bp; PXD

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

LUV 5.125% due 06/15/27 T+78bp (G74; $101.17) - $2.0bn pxd JUN 2020

LUV 2.625% due 02/10/30 T+93bp (G97; $92.55) - $500m pxd FEB 2020

** 10yr: Feb 30s G97; Call f/v T+100.  Plus 25-30bp 5s/10s = T+127.5bp. 10YR CONCESSION FLAT. 

** 3YR: 10YR F/V T+127.5bp minus 40bp 3s/10s curve = T+87.5bp.  At the T+88bp pricing level, 3YR CONCESSION IS FLAT. 

FINAL BOOKS: 

$750m 3yr - $3.10bn (4.13x) - PEAK $3.10BN
$750m 10yr - $3.80bn (5.07x) - PEAK $4.40BN 

[PROLOGIS TARGETED US LOGISTICS FUND] 

Prologis Targeted US Logistics Fund LP (PLDTLF) exp A3/A- (s/s) US$1bn 144A/Reg S no reg rights 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. UOP: the Issuer intends to directly or indirectly use the net proceeds for general corporate and working capital purposes, including the repayment of borrowings under the Issuer’s unsecured credit facility. Marketing: https://dealroadshow.com Passcode: USLF2025 . Pricing 10/27. Settle 10/30 (T+3). 144A CUSIP: L5y: 74350LAD6, L10y: 74350LAE4. 144A ISIN: L5y: US74350LAD64, L10y: US74350LAE48.

VIA ING/PNC/TSI/USB/WFS (B&D) joint active books. 

Announced with benchmark size, we heard initial thoughts as  L5y T+95 area, L10y T+115 area.

Guidance came in at : L5y T+70#, L10y T+90#.

Ultimately, a $1bn deal priced as follows:

$400m 4.25% 1/15/31 99.691 4.318% T+70. MW+15.

$600m 4.75% 1/15/36 98.821 4.899% T+90. MW+15.

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

-PLDTLF 5.250% due 04/01/29 T+54bp (G63; $103.33) - $500m pxd FEB 2024
-PLDTLF 5.500% due 04/01/34 T+76bp (G88; $104.83) - $500m pxd FEB 2024
-PLDTLF 5.250% due 01/15/35 T+78bp (G84; $103.24) - $500m pxd AUG 2024

*** L10yr: Jan ‘35 G84, add 3bp for ‘35/’36 curve = 87bp. April ‘34 G88, add 4bp for ‘34/’36 curve = 92bp. Going midpoint call f/v at T+90bp. At the T+90bp pricing level, L10yr CONCESSION IS FLAT. 

*** L5yr: L10y f/v at T+90, take away 20bp for IPT curve gets f/v to T+70bp. At the T+70bp pricing level, L5yr CONCESSION IS FLAT.

Prologis LP (A2/A)
-PLD 4.750% due 01/15/31 T+59bp (G57; $102.39) - $500m pxd MAY 2025
-PLD 4.750% due 06/15/33 T+48bp (G66; $101.55) - $750m pxd MAR 2023
-PLD 5.250% due 05/15/35 T+72bp (G77; $103.79) - $750m pxd MAY 2025

FINAL BOOKS:

$400m L5yr - $2.000bn (5.00x) - PEAK $2.200bn

$600m L10yr - $1.700bn (2.83x) - PEAK $2.100bn

[DNB BANK] 

DNB Bank ASA (DNBNO) exp A2/A/NR US$1bn 144A/Reg S 6nc5 fixed to floating Senior Non-Preferred due 11/4/31. Optional Redemption: 1y prior to maturity (11/4/30). Denoms: 200,000 x 1,000. Sale into Canada: Yes - Exemption. UOP: gcp. Pricing 10/27. Settle 11/4 (T+6).

VIA BofA/Barc/JPM/MS/RBC/WFS joint active books.

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

The deal went straight to launch  - $1bn at T+77bp.

PRICED: $1bn 4.384% 11/4/31 100.00 4.384% T+77. Back-end: SOFR+104.9.

The only recent 6nc5 from DNBNO was a senior preferred (Aa2/AA-) priced in OCT 2024:

DNBNO 4.853% due 11/05/30 (nc 29) T+58bp (G63; $102.37) - $1.15bn pxd OCT 2024

Senior non-pfd comps away included the following:

Rabobank (A3/A-/A+)
- RABOBK 4.990% due 05/27/31 (nc 30) T+75bp (G77; $102.53) - $750m pxd 5/19/25 +92

ING Groep (Baa1/A-/A+)
- INTNED 5.066% due 03/25/31 (nc 30) T+74bp (G77; $102.78) - $1.0bn pxd 3/18/25 +100

Swedbank AB (A3/A/AA-)
- SWEDA 5.083% due 05/21/30 (bullet) T+71bp (G73; $103.08) - $750m pxd 5/14/25 +93

Skandinaviska Enskilda Banken (A3/A-/AA-)
- SEB 4.500% due 09/03/30 (bullet) T+74bp (G74; $100.59) - $750m pxd 8/25/25 +73

Danske Bank (Baa1/A-/A+)
- DANBNK 4.420% due 09/12/31 (nc 30) T+86bp (G86; $99.73) - $750m pxd 9/8/25 +85

The r/v focus on today’s DNBNO 6nc5 was non-preferred senior comps away.  

The feeling was that DNBNO should come flat to Rabobank (G77), which it did. 

Also, 10ish inside DANBK (G86) was considered f/v. 

At the T+77bp pricing level, we think CONCESSION IS FLAT. 

FINAL BOOKS:

$1.00bn 6nc5 - $3.00bn (3x) - PEAK $4.500BN 

[AKER BP ASA] 

Aker BP ASA (AKERBP) exp Baa2/BBB/BBB US$1bn 144A/Reg S no reg rights 10y sr notes due 10/30/35. MWC then 3mos par call. CoC @101. Demos: 150,000 x 1,000. Sale into Canada: Yes - Exemption. UOP: refinancing of existing indebtedness and general corporate purposes Marketing: https://dealroadshow.com Passcode: AKERBP25. Pricing 10/27. Settle 10/30 (T+3). 144A CUSIP / ISIN: 00973RAQ6 / US00973RAQ65. 

VIA JGCs/JBRs: Barc/Citi/MUFG/WFS (B&D). JBRs: ABN Amro/BofA/Nordea/SEB/UNICRD.

Announced with benchmark size, we heard initial thoughts as T+160 area.

Guidance came in at T+132#.

Ultimately, a $1bn deal priced as follows:

$1bn 5.25% 10/30/35 99.531 5.311% T+132.

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

-AKERBP 5.125% due 10/01/34 T+125bp (G132; $99.06) - $750m pxd SEPT 2024
-AKERBP 5.800% due 10//54 T+166bp ($94.13) - $750m pxd SEPT 2024

*** Oct ‘34 G132, add 3bp for ‘34/’35 curve gets f/v to T+135bp. At the T+132bp pricing level, CONCESSION IS NEG 3BP.

COMPS AWAY:

Eni SpA (Baa1/A-/A-)
-ENIIM 5.750% due 05/19/35 T+106bp (G109; $105.02) - $1bn pxd MAY 2025

Woodside Finance Ltd (Baa1/BBB+)
-WDSAU 6.000% due 05/19/35 T+132bp (G135; $104.89) - $1.25bn pxd MAY 2025

Diamondback Energy (Baa2/BBB/BBB+)
-FANG 5.550% due 04//35 T+108bp (G113; $103.37) - $1.2bn pxd MAR 2025

Devon Energy Corp (Baa2/BBB/BBB+)
-DVN 5.200% due 09/15/34 T+117bp (G123; $100.15) - $1.25bn pxd AUG 2024

VAR Energi ASA (Baa3/BBB)
-VARNO 6.500% due 05/22/35 T+155bp (G158; $106.78) - $750m pxd MAY 2025

FINAL BOOK:

$1bn 10yr - $3.100bn (3.10x)- PEAK $4.100bn

[LLOYDS]

Lloyds Banking Group plc (LLOYDS), exp issue ratings Baa3/BBB by Moody's/Fitch, US$1bn SEC registered fixed rate reset PerpNC10 Additional Tier 1 Subordinated Contingent Convertible Secs. First Reset Date: 9/27/35. Reset Dates: The First Reset Date and each fifth anniversary thereafter. Interest: The Notes shall bear interest on their outstanding principal amount from (and including) the Issue Date to (but excluding) the First Reset Date at a rate of [ ]% per annum. From (and including) each Reset Date to (but excluding) the next following Reset Date, the Notes will bear interest at a rate which is the aggregate of the Margin and the Reset Reference Rate on the relevant Reset Determination Date, converted to a quarterly rate in accordance with market convention. Interest Payment Dates: March 27, June 27, September 27 and December 27 of each year, commencing on March 27, 2026 (with a long first interest period). Pricing 10/27. Settle 11/3 (T+5). 

VIA BofA/Citi/Lloyds (B&D)/MS/RBC/Sant as JLMs. 

IPTs: 7.125% area. RVSD IPTs: 7.00% area.

Went straight to launch at $1bn Perpnc10 at 6.625%.

Ultimately, a $1bn deal priced as follows:

$1bn, 6.625% at 100. Back-end reset: T+268.1.

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

-LLOYDS 8.000% PerpNC 09/27/29 $107.722 (G225; 5.78% YTC) - $1.25bn pxd MAR 2023 b/e +391.3
-LLOYDS 6.750% PerpNC 08/31/31 $102.525 (G256; 6.24% YTC) - $1bn pxd SEPT 2024 b/e +315.0

*** NC Aug ‘31 6.24% add 20-25bp for curve = 6.475%. 

Outstanding b/e 315 minus new issue be 268.1 = 46.9 * 0.3 = 14.07bp. 

Add 15bp for b/e differential gets f/v to 6.625%. At the 6.625% pricing level, CONCESSION IS FLAT.

FINAL BOOK:

$1bn PerpNC10 - $8.400bn (8.40x) - PEAK $9.200bn

[RYDER SYSTEM]

Ryder System Inc (R) exp Baa2/BBB+/BBB+ (p/s/s) US$300m (no grow) SEC registered 5y FXD sr notes due 12/1/30. MWC then 1mo par call. MUFG/PNC/Regions/USB/WFS joint active books. First Pay: 6/1/26. Denoms: 2,000 x 1,000. Sale into Canada: Yes - Exemption. UOP: gcp. Pricing 10/27. Settle 11/5 (T+7). CUSIP: 78355HLG2. ISIN: US78355HLG29. 

VIA MUFG/PNC/Regions/USB/WFS joint active books.

Announced as $300m WNG, we heard initial thoughts as T+100a.

The deal went straight to launch - $300m at T+73bp.

PRICED: $300m 4.30% 12/1/30 99.766 4.351% T+73. MW+15.

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

- R 5.250% due 06/01/28 T+56bp (G56; $102.78) - $650m pxd MAY 2023
- R 6.300% due 12/01/28 T+55bp (G55; $106.28) - $400m pxd OCT 2023
- R 4.900% due 12/01/29 T+51bp (G56; $102.83) - $300m pxd OCT 2024
- R 4.950% due 09/01/29 T+55bp (G62; $102.69) - $300m pxd JUL 2024
- R 4.850% due 06/15/30 T+69bp (G71; $102.21) - $300m pxd 4/28/25 + 108
- R 5.250% due 12/01/33 T+69bp (G84; $112.43) - $600m pxd OCT 2023

* R Jun ‘30s G71 + 2bp curve = T+73bp.  At the T+73bp pricing level, CONCESSION IS FLAT.

Comps away:

Penske Truck Leasing/PTL (Baa2/BBB/BBB+)
- PENSKE 5.250% due 02/01/30 T+66bp (G70; $103.67) - $750m pxd 1/22/25 +85
- PENSKE 6.200% due 06/15/30 T+75bp (G77; $107.41) - $500m pxd MAY 2023

FINAL BOOK:

$300m 5yr - $1.10bn (3.67x) - PEAK $1.500BN 

OCEANFIRST FINANCIAL ROUNDS OUT THE TOTAL

OceanFirst Financial Corp (OCFC), exp Baa3/BBB (s/s) by Moody's/KBRA, $185m (upsized from US$125m) SEC registered 10nc5 fixed to floating subordinated notes due 11/15/35. Piper Sandler (B&D)/KBW (A Stifel Company) joint books. Coupon: Fixed Rate Period: From Settlement Date, to but excluding November 15, 2030, [  ]%; Floating Rate Period: From and including November 15, 2030 to, but excluding, the Maturity Date at a floating rate equal to a benchmark rate (Three-Month Term SOFR), reset quarterly, plus a spread of [  ] basis points ([  ]%). Optional Redemption: In whole, or in part, beginning with the interest payment of November 15, 2030 at 100% of par; In whole, but not in part, at any time within 90 days following the occurrence of a change or prospective change of tax law that could prevent us from deducting interest payable on the notes for U.S. federal income tax purposes; a change in law that could preclude us from treating the notes as "tier 2 capital" for regulatory capital purposes; or we are required to register as an investment company under the Investment Company Act of 1940, as amended, at 100% of par. First Pay: 5/15/26. Denoms: 1,000 x 1,000. UOP: repay existing indebtedness, including the redemption in full of our 2030 Notes, of which $125.0 million in principal amount is currently outstanding, to support growth initiatives at the Company's subsidiaries. Pricing 10/27. Settle 10/29 (T+2). CUSIP: 675234AC2. ISIN: US675234AC29.

IPTs: 6.50-6.75%.

GUIDANCE: 6.375%#.

UPSIZED/LAUNCHED: $185m 10nc5 at 6.375%.

PRICED: $185m 6.375% 11/15/35 100.00 6.375%. Back-end: SOFR+307.5.

[M&A TODAY]

Novartis AG "NOVNVX" (Aa3/AA-) entered an agreement to acquire Avidity Biosciences Inc "RNA" for $72.00 per share representing an equity value of $12bn or an enterprise value of $11bn in cash.

Novaris did not disclose how they plan on funding the purchase price. They had approximately $7bn in cash equivalents as of 6/30; they last issued a $3.7bn deal in September 2024 and last issued an M&A deal in February 2020 of $5bn for their $7.3bn acquisition of The Medicines Co.

The transaction is expected to close by Q2 2026.

Ampehnol hit the market with $7.5bn to help fund their $10.5bn acquisition of the Connectivity and Cable business from CommScope Holdings announced on $10.5bn. APH’s $7.5bn is good enough to be the 5th largest M&A trade ytd. Behind Mars ($26bn), NTT ($11.25bn), SNPS $10bn, and Rio Tinto ($9bn).

This is also the first M&A deal for October with the last one being NRG Energy on 9/24.

[NEW MANDATES & MARKETING]

---- American Airlines, Inc. ("American" or the "Company", Ticker: AAL) has mandated J.P. Morgan and Deutsche Bank as Joint Structuring Agents, and J.P. Morgan, Deutsche Bank, and BNP Paribas as Joint Active Bookrunners, to host a series of global fixed income investor calls today, Monday, October 27th. Issuance of an SEC Registered EETC offering may follow, subject to market conditions. An electronic investor presentation has been made available, and Class A and Class B Prospectus Supplements have been filed. The Class A tranche is expected to be rated A+ by S&P and A– by Fitch, and the Class B tranche is expected to be rated BBB by S&P and BBB– by Fitch*.

J.P. Morgan is coordinating logistics.

Company Representatives:

Clemens Metz, Vice President, Treasurer

Abriell Jackson, Managing Director, Investor Relations

Joint Structuring Agent Representatives:

Dana Barta, Executive Director, J.P. Morgan

Ryan DeMartino, Executive Director, J.P. Morgan

Rafael Kuhn, Managing Director, Deutsche Bank

Schedule for Monday, October 27, 2025:

Call #1: 10:00am – 10:50am

Call #2: 11:00am – 11:50am

Call #3: 1:00pm – 1:50pm

Call #4: 2:00pm – 2:50pm

Direct link to investor sign ups:

https://markets.jpmorgan.com/event_booking/loadEvent?eventToken=125937_f0c483f0-103c-4e50-9f5d-79b9b9217ad0

Electronic Investor Presentation Details:

URL: www.netroadshow.com

Password: AAL2025

Direct Link: www.netroadshow.com/nrs/home/#!/?show=c4b87ed2

About American:

As a leading global airline, American Airlines offers thousands of flights per day to more than 350 destinations in more than 60 countries. The airline is a founding member of the oneworld alliance, whose members serve more than 900 destinations around the globe. Shares of American Airlines Group Inc. trade on Nasdaq under the ticker symbol AAL. Learn more about what’s happening at American by visiting news.aa.com and connect with American @AmericanAir and at Facebook.com/AmericanAirlines. To Care for People on Life’s Journey®.

-- Meituan (3690.HK) (MEITUA) (the “Company” or the “Issuer”), rated Baa1 (stable) by Moody’s, A- (stable) by S&P and BBB+ (stable) by Fitch, has mandated banks to arrange a series of global fixed income investor conference calls commencing on October 27, 2025. A proposed multi-tranche offering of U.S. dollar-denominated Rule 144A/Reg S (Category 2) senior unsecured notes (the “USD-denominated Notes”) and CNH-denominated Reg S (Category 2) senior unsecured notes (the “CNH-denominated Notes”, and together with the USD-denominated Notes, the “Notes”) may follow, subject to market conditions. The Notes, if issued, are expected to be rated Baa1 by Moody’s, A- by S&P and BBB+ by Fitch.

The Company has mandated Goldman Sachs (Asia) L.L.C., BofA Securities and CITIC Securities as Joint Global Coordinators, Joint Lead Managers and Joint Bookrunners, for its proposed USD-denominated Notes offering, with tenors of 5.5-year, 7-year and 10-year.

The Company has mandated CITIC Securities, Goldman Sachs (Asia) L.L.C., BofA Securities, China Construction Bank (Asia), Bank of Communications, Bank of China and ICBC as Joint Global Coordinators, Joint Lead Managers and Joint Bookrunners, and ABC International, Huatai International and China Galaxy International as Joint Lead Managers and Joint Bookrunners, for its proposed CNH-denominated Notes offering, with tenors of 5-year and 10-year.

** MEITUAN – US$ 144A/REGS & CNH REGS – US INVESTOR MEETING / CALL SLOTS **

LOGISTICS BANK: GS

OCT 27 (MON)

21:00 – 21:50 HKT / 09:00 – 09:50 NYT – US SMALL GROUP / 1x1

Registration Link: https://www.netroadshow.com/events/login/LE9zwo3hUukHuvw6Fjq9TDpSnVynHH9X9Wg

22:00 – 22:50 HKT / 10:00 – 10:50 NYT – US SMALL GROUP / 1x1

Registration Link: https://www.netroadshow.com/events/login/LE9zwo3gDPSQq8KxdNGocDb9p1YIIU1VrMu

FCA / ICMA stabilisation applies.

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