Commentary & Deal Flow

     We had hoped the week would somehow get to its average estimate today.  It needed $13.609bn.  It got 8 deals (6 of them marketings) for $4.600bn.  For the sake of the week – we could hope for a $9bn+ Friday trade, but after the equities close, and with DXC postponed today, this seems extremely improbable.

     DXC Technology this morning announced a US$ benchmark 5yr at 165a IPT.  There was no movement from IPT to Guidance, which came in at 165#.  Ultimately, this opportunistic deal was postponed due to market conditions.

      This is the second deal postponed deal in 2025.  The first, a BCRED 7yr announced on 1/14/25, was withdrawn due to administrative delays with respect to the SEC declaring the bond registration statement effective.  That deal returned on 1/22/25.

      Prior to the postponement, we had prepped a recent list of deals with zero movement from IPT-PXD. Here’s a list of “non-movers” back through 2023:

      Many were surprised at the lack of traction on DXC today on the back of marketing.  That said, tech was definitely getting hit today in equity land as investors took risk off the table - which might have been part of the reason for lack of movement and the postponement. 

      The Nasdaq ended down 536.10 (-2.29%)
      The Dow ended down 797.60 (-1.65%)
      The S&P ended down 113.43 (-1.66%)

      FYI - comps on the DXC trade included the following:

-DXC 2.375% due 09/15/28 T+93bp (G94; $94.35) - $650M pxd Sep 2021

Comps away:

HP Enterprise Co (Baa2/BBB/BBB+)
-HPE 4.150% due 09/15/28 T+65bp (G66; $99.77) - $850M pxd 09/08/25 +70

-HPE 4.400% due 10/15/30 T+88bp (G88; $99.24) - $850M pxd 09/08/25 +85

-HPE 5.000% due 10/15/34 T+108bp (G114; $98.86) - $2B pxd Sep 2024

 Kyndryl Holdings Inc (Baa2/BBB-/BBB)
-KD 2.700% due 10/15/28 T+82bp (G83; $95.36) - $449M pxd Aug 2022

-KD 3.150% due 10/15/31 T+126bp (G117; $90.85) - $648M pxd Aug 2022

-KD 6.350% due 02/20/34 T+133bp (G147; $106.04) - $500M pxd Feb 2024

HERE'S TODAY'S RUNDOWN:

[BROOKFIELD ASSET MANAGEMENT] 

Brookfield Asset Management Ltd (BAMCN) exp NR/A-/A (s/s) US$1bn SEC registered 2-pt sr notes (5y due 11/15/30 and L10 due 1/15/36). 101CoC. MWC then 1 mos par call on 5y and 3 mos on L10y. Use of Proceeds: gcp. Sale into Canada: Yes - Exemption. Denoms: 2k x 1k. Pricing 11/13. Settle 11/18 (T+3). 5s/L10s: CUSIP - 113004AB1/113004AC9; ISIN: US113004AB12/US113004AC94.

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

Announced with benchmark size, we heard initial thoughts as 5y T+120 area and L10y T+140 area.

Guidance came in at 5y T+95#, L10y T+120#.

Ultimately, a $1bn deal priced as follows:

$600m 4.653% 11/15/30 100.00 4.653% T+95. MW+15.

$400m 5.298% 1/15/36 99.986 5.298% T+120. MW+20.

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

-BAMCN 5.795% due 04/24/35 T+106bp (G110; $104.68) - $750m pxd APRL 2025

*** L10yr: April ‘35 G110, add 2bp for ‘34’35 curve gets f/v to T+112bp. At the T+120bp pricing level, L10yr CONCESSION IS 8BP.

*** 5yr: L10y f/v at T+112, take away 20bp for IPT curve gets f/v to T+92bp. At the T+95bp pricing level, 5yr CONCESSION IS 3BP.

COMPS AWAY:

Blackston Reg Finance Co LLC (NR/A+/A+)
-BX 4.300% due 11/03/30 T+69bp (G69; $99.60) - $600m pxd 10/28/25 +73
-BX 4.950% due 02/15/36 T+96bp (G93; $99.20) - $600m pxd 10/28/25 +98

Apollo Global Management Inc (A2/A/A)
-APO 4.600% due 01/15/31 T+84bp (G83; $100.25) - $400m pxd 11/05/25 +85
-APO 5.150% due 08/12/35 T+107bp (G107; $99.90) - $850m pxd 08/07/25 +95

KKR Group Finance Co VI LLC (NR/A/A)
-KKR 3.750% due 07/01/29 T+61bp (G69; $98.14) - $750m pxd JUN 2019
KKR & Co Inc (NR/A/A)
-KKR 5.100% due 08/07/35 T+108bp (G108; $99.48) - $900m pxd 08/04/25 +93 

Brookfield Finance Inc (A3/A-/A-)
-BNCN 5.330% due 01/15/36 T+118bp (G117; $100.48) - $650m pxd 08/13/25 +110

Carlyle Finance Subsidiary LLC (NR/A-/A-)
-CG 3.500% due 09/19/29 T+62bp (G68; $97.13) - $425m pxd SEPT 2019
Carlyle Group Inc (NR/A-/A-)
-CG 5.050% due 09/19/35 T+115bp (G114; $98.57) - $800m pxx 09/16/25 +105

TPG Operating Group II LP (A3/BBB+/A-)
-TPG 5.375% due 01/15/36 T+131bp (G129; $99.82) - $500m pxd 08/11/25 +120

FINAL BOOKS:

$600m 5yr - $1.000bn (1.67x) - PEAK $1.300bn

$400m L10yr - $625m (1.56x) - PEAK $1.300bn

[GARTNER] 

Gartner Inc (IT) exp Baa3/BBB-/BBB (s/s/s) US$800m SEC registered 2-part sr notes (long 5y FXD due 3/20/31 and 10y FXD due 11/20/35). MWC then 1mo par call on L5y (2/20/31) and 3mos on 10y (8/20/35). Denoms: 2,000 x 1,000. Sale into Canada: Yes - Exemption. UOP: To repay $274.4 million in aggregate principal amount of outstanding borrowings under the company's Revolving Credit Facility and to pay related fees and expenses, with remaining amounts to be used for general corporate purposes, which may include, without limitation, potential repurchases of the company's common stock. Pricing 11/13. Settle 11/20 (T+5).

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

   Announced as benchmark, final size came in at $800m with price progression as follows:

   L5yr – IPT T+140a; GDNC 125#; PXD $350m 4.95% 3/20/31 99.970 4.958% T+125. MW+20.
  10yr – IPT T+165a; GDNC 150#; PXD $450m 5.60% 11/20/35 99.992 5.601% T+150. MW+25.

This was an IG debut for Gartner.  As such, CONCESSION IS IG DEBUT/ N/A. 

Outstanding Gartner was quoted as follows, but these were all originally HY deals - and all have calls right around the corner 

- IT 4.500% due 07/01/28 (nc 12/13/25) T+120bp (G120; $99.303) - $800m pxd JUN 2020
- IT 3.625% due 06/15/29 (nc 12/13/25) T+122bp (G130; $95.838) - $600m pxd JUN 2021
- IT 3.750% due 10/01/30 (nc 11/23/25) T+131bp (G131; $94.667) - $800m pxd SEPT 2020

Comps away:

MSCI Inc (Baa3/BBB-/BBB-)
- MSCI 3.625% due 09/01/30 T+108bp (G109; $95.176) - $900m pxd FEB 2020
- MSCI 3.875% due 02/15/31 T+112bp (G109; $95.753) - $1.0bn pxd MAY 2020
- MSCI 5.250% due 09/01/35 T+110bp (G112; $100.580) - $1.25bn pxd 8/5/25 +112.5
- MSCI 5.150% due 03/15/36 T+117bp (G114; $99.284) - $500m pxd 10/30/25 + 110

FactSet Research Systems (Baa3/NR/BBB+)
- FDS 3.450% due 03/01/32 T+85bp (G112; $92.111) - $500m pxd FEB 2022

Moody’s Corp (BBB+/BBB+)
- MCO 4.250% due 08/08/32 T+47bp (G70; $98.321) - $500m pxd AUG 2022
- MCO 5.000% due 08/05/34 T+62bp (G72; $102.05) - $500m pxd JUL 2024

Verisk Analytics (Baa1/BBB)
- VRSK 4.500% due 08/15/30 T+76bp  (G78; $100.232) - $750m pxd 8/7/25 +72
- VRSK 5.125% due 02/15/36 T+96bp (G95; $100.65) - $750m pxd 8/7/25 +92

Broadridge Financial (Baa2/BBB/BBB+)
- BR 2.600% due 05/01/31 T+91bp (G87; $90.461) - $1.00bn pxd MAY 2021

Equifax (Baa2/BBB)
- EFX 4.800% due 09/15/29 T+73bp (G80; $101.30) - $650m pxd AUG 2024
- EFX 2.350% due 09/15/31 T+94bp (G86; $88.46) - $1.0bn pxd AUG 2021

Booz Allen Hamilton (Baa3/BBB-)
- BAH 5.950% due 04/15/35 T+140bp (G145; $103.417) - $650m pxd 3/11/25 +168

FINAL BOOKS:

$350m L5yr - $550m (1.57x) - PEAK $850M

$450m 10yr - $700m (1.56x) - PEAK $950M 

[BOARDWALK PIPELINES] 

Boardwalk Pipelines LP (BWP) exp Baa2/BBB/BBB (s/s/s) US$550m ($500m size rumored) SEC registered long 10y sr notes due 2/15/36. MWC then 3mos par call (11/15/35). Guarantor: Boardwalk Pipeline Partners LP. Denoms: 2,000 x 1,000. Sale into Canada: No. Int Payment Dates: February 15th and August 15th of each year, commencing on August 15th, 2026. UOP: Net proceeds from the offering are expected to be used to retire all of the outstanding $550 million aggregate principal amount of the 5.95% notes due 2026 of Boardwalk Pipelines at or prior to maturity and the remainder, if any, for general partnership purposes, which may include, among other things, growth capital expenditures and additions in working capital. Marketing: https://www.netroadshow.com/events/login/LE9zwo4AM07eYZ7DEbRJz6suurbqlonbfH6. Pricing 11/13. Settle 11/24 (T+7). Cusip: 096630AL2. ISIN: US096630AL27.

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

Announced as a benchmark, we heard initial price thoughts as T+155 area.

Went straight to launch at $550m L10y at T+130.

Ultimately, a $550m deal priced as follows:

$550m 5.375% 2/15/36 99.853 5.395% T+130. MW+20.

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

-BWP 5.625% due 08/01/34 T+106bp (G116; $103.278) - $600M pxd Feb 2024

** Outstanding Aug 34s G116; plus curve, call f/v T+120bp. At the T+130bp pricing level, CONCESSION IS 10BP.

Comps away:

Transcont Gas Pipe Line (N/A/BBB+/BBB+)
-WMB 5.100% due 03/15/36 T+90bp (G88; $100.953) - $1B pxd 11/05/25 +95

Columbia Pipelines Opco (Baa1/N/A/BBB+)
-CPGX 5.439% due 02/15/35 T+111bp (G116; $101.77) - $550M pxd Mar 2025

Florida Gas Transmission (Baa2/BBB+)
-CITCOR 5.750% due 07/15/35 T+115bp (G118; $103.747) - $800M pxd 5/28/25 +130

Williams Companies Inc (Baa2/BBB+/BBB)
-WMB 5.300% due 09/30/35 T+103bp (G104; $101.43) - $750M pxd 06/26/25 +110

Kinder Morgan Inc (Baa2/BBB/BBB+)
-KMI 5.850% due 06/01/35 T+105bp (G108; $105.273) - $750M pxd Apr 2025

Targa Resources Corp (Baa2/BBB/BBB)
-TRGP 5.400% due 07/30/36 T+131bp (G124; $100.089) - $1B pxd 11/06/25 +132

MPLX LP (Baa2/BBB/BBB)
-MPLX 5.400% due 09/15/35 T+128bp (G129; $100.3) - $1.5B pxd 08/07/25 +130

Oneok Inc (Baa2/BBB/BBB)
-OKE 5.400% due 10/15/35 T+126bp (G127; $100.428) - $1B pxd 08/06/25 +122

Energy Transfer LP (Baa2/BBB/BBB)
-ET 5.700% due 04/01/35 T+122bp (G126; $102.85) - $1.25B pxd Feb 2025

FINAL BOOKS:

$550m L10yr - $1.400bn (2.55x) - PEAK $2.000bn

[FIRST CITIZENS BANCSHARES INC/NC]

First Citizens BancShares Inc/NC (FCNCA), exp security rating Ba1/BB (s/s), US$500m SEC registered $1000 par fixed rate reset non-cumulative PerpNC5 pfd, Series D. Dividend Rate: (i) From November 18, 2025 to, but excluding, December 15, 2030, at a fixed rate of [●]% per annum and (ii) from and including December 15, 2030, during each five-year Reset Period, at a rate per annum equal to the five-year U.S. Treasury rate as of the most recent Reset Dividend Determination Date, plus [●]%. (Non-cumulative). Optional Redemption: Redeemable at par (i) in whole or in part, from time to time, on any dividend payment date on or after December 15, 2030 (ii) in whole but not in part at any time within 90 days following a Regulatory Capital Treatment Event. Dividend Payment Dates: beginning March 15, 2026, and each March 15, June 15, September 15 and December 15 thereafter. DRD/QDI Eligible: Yes. Sale into Canada: Yes - Exemption. Listing: None. UOP: gcp. Pricing 11/13. Settle 11/18 (T+3). Cusip 31959XAG8. ISIN: US31959XAG88.

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

Announced with benchmark size, we heard initial thoughts as 7.375% area.

Went straight to launch at $500m PerpNC5 at 7.00%.

Ultimately, a $500m deal priced as follows:

$500m, 7.00% at 100. Back-end reset spread: T+330.1.

As for r/v, HBAN was seen as a relevant comp:

Huntington Bancshares Inc (Baa3/BB+/BB+)
-HABN 6.250% PerpNC 10/15/30 $99.36 (G275; 6.43% YTC) - $750m pxd 09/09/25 b/e +265.3

HBAN recently priced a PerpNC Oct ‘30 currently trading at 6.43%. Take away 2bp for b/e differential = 6.40% for a new issue HBAN PerpNC5.

FCNCA senior 6nc5 currently trades about 45bp back of HBAN. Call it 50bp differential on the sub level. 6.40% plus 50bp puts f/v at 6.90%. At the 7.00% pricing level, CONCESSION IS 10BP.

Seniors:

First Citizens Bancshares (Baa2/BBB)
-FCNCA 5.231% due 03/12/31 nc30 T+128bp (G132; $100.97) - $500m pxd MAR 2025

Huntington Bancshares (Baa1/BBB+/A-)
-HBAN 5.2727% due 01/15/31 nc30 T+81bp (G86; $102.86) - $1.15bn pxd NOV 2024

FINAL BOOK:

$500m PerpNC5 - $1.000bn (2.00x)

[HAS SUSTAINABLE INFRASTRUCTURE CAPITAL]

HA Sustainable Infrastructure Capital Inc (HASI), exp security ratings Ba1/BB/BB (s/s/s), US$500m SEC registered 30.5nc5.25 fixed rate reset jr sub notes due 6/1/56. With coupon floor. Guarantors: Hannon Armstrong Sustainable Infrastructure, L.P., Hannon Armstrong Capital, LLC, HAC Holdings I LLC, HAC Holdings II LLC, HAT Holdings I LLC, and HAT Holdings II LLC (collectively, the “Guarantors”). Par Call Date: 3/1/31. Interest Rate: Fixed until First Reset Date, thereafter, the interest rate resets to the then prevailing 5-year US Treasury Rate plus the initial credit spread, provided that the coupon will not reset below the initial interest rate of the Notes. Optional Interest Deferral Maximum of 10 consecutive years per deferral. First Reset Date: 6/1/31. Reset Dates: The First Reset Date and June 1 of every fifth year after 2031. Interest Payment Dates: June 1 and December 1, starting June 1, 2026. Optional Redemption: In whole or in part, in the 90-days preceding the First Reset Date and every interest payment date thereafter at par. Special Event Redemption: In whole, but not in part, upon a Rating Agency Event at 102%, or upon a Tax Event at par. Change of Control Event Redemption: In whole, but not in part, upon a Change of Control Event at 101%; 500 bps step up in interest rate if securities are not redeemed. Denominations: 2,000 x 1,000. Sale into HK or Mainland China: No – All Solicitations Prohibited. UOP: Eligible Green Projects; the Company may utilize net proceeds to temporarily repay a portion of outstanding borrowings. DealRoadshow Direct Link: https://dealroadshow.com/e/HASI2025JSNORLink: https://dealroadshow.com / Passcode: HASI2025JSN. Pricing 11/13. Settle 11/20 (T+5). CUSIP / ISIN: 41068XAG5 / US41068XAG51.

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

Announced with benchmark size, we heard initial thoughts as 8.375% area.

Went straight to launch at 500m 30.5nc5.25 at 8.00%.

Ultimately, a $500m deal priced as follows:

$500m 8.00% 6/1/56 100.00 8.00%. Back-end reset: T+430.1.

As for r/v this is HASI’s debut hybrid trade thus CONCESSION N/A.

COMPS AWAY:

American Electric Power (Baa3/BBB-/BB+)
-AEP 5.800% due03/15/56 nc12/15/30 $99.60 (G220; 5.887% YTC) - $1.1bn pxd 09/23/25 b/e +212.8 (with floor)

American National Group (NR/BB+/BB+)
-ANGINC 7.000% due 12/01/55 nc30 $101.17 (G302; 6.76% YTC) - $500m pxd 08/19/25 b/e +318.3 (w/o floor)

Apollo Global Management (A3/BBB+/BBB+)
-APO 6.000% due 12/15/54 nc 09/15/34 $99.60 (G206; 6.055% YTC) - $500m pxd OCT 2024 b/e +216.8 (w/o floor)

Athene Holding Ltd (Baa2/BBB/BBB-)
-ATH 6.875% due 06/28/55 nc 03/28/25 $99.24 (G293; 6.96% YTC) - $600m pxd 06/24/25 b/e +258.2 (w/o floor)

Brookfield Infrastructure Finance ULC (NR/BBB-/BBB-)
-BNCN 6.750% due 03/15/55 nc 12/15/29 $101.50 (G270; 6.328% YTC) - $300m pxd NOV 2024 b/e +245.3 (with floor)

CenetPoint Energy Inc (Baa3/BBB-/BB+)
-CNP 5.950% due 04/01/56 nc 01/01/31 $100.40 (G218; 5.864% YTC) - $700m pxd 09/30/25 b/e +222.3 (with floor)

-CRBG 6.375% due 09/15/54 nc 09/15/34 $101.45 (G217; 6.20% YTC) - $750m pxd SEPT 2024 b/e +264.6 (w/o floor)

Seniors:

HA Sustainable Infrastructure Capital (Baa3/BBB-/BBB-)
-HASI 6.150% (green) due 01/15/31 T+195bp (G194; $102.20) - $600m pxd 06/12/25 +225
-HASI 6.375% (green) due 07/01/34 T+214bp (G225; $100.95) - $997m pxd APRL 2025
-HASI 6.750% (green) due 07/15/35 T+223bp (G226; $103.03) - $400m pxd 06/12/25 +245

*** Jan ‘31 G194 points to L5y f/v at 195bp. Also looking at their Jul ‘35 G226 which points to L10y f/v at 228. When the 5y and 10y priced in June they priced a 20bp 5s/10s curve. L10y f/v at 228 minus 20-25bp for 5s/10s curve points to L5y f/v at 205bp. Going midpoint call L5y f/v at 200bp.

UST 5y at 3.69%, add 200bp = 5.70%. At the 8.00% pricing level, the sr-sub differential is 230bp.

FINAL BOOK:

$500m 30.5nc5.25 - $1.800bn (3.60x) - PEAK $2.050bn

[COREBRIDGE] 

Corebridge Financial, Inc. (CRBG) exp Ba1/BBB-/BBB- (s/s/s) US$500m $1000 par SEC registered series A PerpNC5 Fixed Rate Reset Non-Cumulative Preferred Stock. Coupon structure: fixed-Rate Reset, payable semi-annually in arrears. Resets will occur on December 1, 2030 (the “First Reset Date”) and every fifth anniversary thereafter at the Five-year U.S. Treasury Rate plus a spread. Par call: any dividend payment date on or after the First Reset Date at par. Dividend payment dates: the Issuer will pay dividends on a non-cumulative basis, semi-annually in arrears on June 1 and December 1 of each year, commencing on June 1, 2026. Optional redemption: Rating Agency Event at 102% of par (within 90 days of event); Regulatory Capital Event at par (within 90 days of event). Voting rights: no, except with respect to certain fundamental changes with respect to the Series A or as required by law, as described in the related Preliminary Prospectus Supplement. UOP: General corporate purposes, including capital contributions to insurance subsidiaries to support organic growth. Sales into Canada: yes via exemption. Marketing: eRed. Pricing 11/13. Settle 11/18 (T+3). CUSIP/ISIN: 21871XAU3 / US21871XAU37. 

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

Announced with benchmark size, we heard initial thoughts as 7.00% area.

Went straight to launch at $500m PerpNC5 at 6.875%.

Ultimately, a $500m deal priced as follows:

$500m, 6.875% at 100. Coupon reset spread: T+318.1.

As for r/v, this CRBG’s first perp trade thus CONCESSION N/A. 

CRBG has outstanding Jr Subs but there was a lot of speculation on what the differential for a Jr Sub to Perp is worth and with no great perps away we’re sticking with n/a.

Corebridge FInancial Inc (Baa3/BBB-/BBB-)
-CRBG 6.875% due 12/15/52 nc 09/15/27 $102.01 (G211; 5.75% YTC) - $1bn pxd APRL 2023 b/e +384.6
-CRBG 6.375% due 09/15/54 nc 09/15/34 $101.45 (G217; 6.20% YTC) - $750m pxd SEPT 2024 b/e +264.6

COMPS AWAY:

American National Group (NR/BB+/BB+)
-ANGINC 7.000% due 12/01/55 nc30 $101.17 (G302; 6.76% YTC) - $500m pxd 08/19/25 b/e +318.3

Athene Holding Ltd (Baa2/BBB/BBB-)
-ATH 6.875% due 06/28/55 nc 03/28/25 $99.24 (G293; 6.96% YTC) - $600m pxd 06/24/25 b/e +258.2

Huntington Bancshares Inc (Baa3/BB+/BB+)
-HABN 6.250% PerpNC 10/15/30 $99.36 (G275; 6.43% YTC) - $750m pxd 09/09/25 b/e +265.3

Bank of New York Mellon Corp (Baa1/BBB/BBB+)
-BNY 5.950% PerpNC 12/20/30 $101.40 (G192; 5.63% YTC) - $500m pxd 09/03/25 b/e +227.1

State Street Corp (Baa1/BBB/BBB+)
-STT 6.450% PerpNC 09/15/30 $103.54 (G196; 5.66% YTC) - $750m pxd JAN 2025 b/e +213.5

FINAL BOOK:

$500m PerpNC5 - $1.300bn (2.60x) - PEAK $1.550bn

[PIEDMONT OPERATING] 

Piedmont Operating Partnership LP (PDM) exp Baa3/BBB-/BBB- (s/n/s) US$400m (upped from $350m) SEC registered long 7y sr notes due 1/15/33. MWC then 2mos par call (11/15/32). REIT Covenants. BofA/JPM/TD/TSI/WFS (B&D) joint active books. Guarantor: Piedmont Realty Trust Inc. First Pay: 7/15/26. Denoms: 2,000 x 1,000. Sale into Canada: No. UOP: intend to use the net proceeds from this offering, together with borrowings under our 2022 line of credit and cash on hand, if necessary, to fund the purchase of all 2028 notes that are validly tendered and accepted for purchase in the Concurrent Tender Offer. This offering is not contingent on the consummation of the Concurrent Tender Offer. In the event that the Concurrent Tender Offer is not consummated, or the aggregate consideration for all 2028 notes that are validly tendered and accepted for purchase in the Concurrent Tender Offer is less than the net proceeds from this offering, we intend to use the remaining net proceeds from this offering for working capital, capital expenditures and other general corporate purposes, which may include repaying other borrowings outstanding. Pricing 11/13. Settle 11/20 (T+5). Cusip: 720198AK6. ISIN: US720198AK68.

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

Announced with $350m size, we heard initial thoughts at T+215bp area.

The deal went straight to launch at an increased $400m at T+185bp.

As for r/v, outstanding Piedmont was quoted as follows:
- PDM 6.875% due 07/15 29 T+138bp (G146; $105.82) - $400m pxd JUN 2024
- PDM 3.150% due 08/15/30 T+159bp (G160; $91.082) - $300m pxd AUG 2020
- PDM 2.750% due 04/01/32 T+147bp (G173; $85.118) - $300m pxd SEPT 2021

** APR ‘32s at G173; Add 7bp for curve puts f/v at T+180bp.  Others looked at the Aug 3.15s of ‘30s G160; and called a new 5yr T+170bp. Adding 10bp for 5s/7s curve puts 7yr f/v at T+180bp.  Plus 3bp for long 7yr = T+183bp. 

Going with a f/v range of T+180-183 – calling f/v T+182bp – at the T+185bp pricing level, CONCESSION IS 3BP.  

Comps away:

American Assets Trust LP (Baa3/BBB-/BBB)
- AAT 3.375% due 02/01/31 T+170bp (G168; $90.930) - $500m pxd JAN 2021
- AAT 6.150% due 10/02/34 T+186bp (G195; $101.395) - $525m pxd SEP 2024

Boston Properties (Baa2/BBB)
- BXP 3.250% T+105bp (G103; $93.15) - $1.25bn pxd MAY 2020
- BXP 2.550% due 04/01/32 T+96bp (G123; $86.49) - $850m pxd MAR 2021
- BXP 2.450% due 10/01/33 T+123bp (G137; $81.69) - $850m pxd SEP 2021
- BXP 5.750% due 01/15/35 T+139bp (G146; $101.84) - $850m pxd AUG 2024

Copt Defense Properties (Baa3/BBB-/BBB-)
- CDP 4.500% due 10/15/30 T+104bp (G104; $98.94) - $400m pxd 9/23/25 +95
- CDP 2.750% due 04/15/31 T+103bp (G99; $90.63) - $600m pxd MAR 2021
- CDP 2.900% due 12/01/33 T+120bp (G133; $84.47) - $400m pxd NOV 2021

Cousins Properties Inc (Baa2/BBB)
- CUZ 5.250% due 07/15/30 T+104bp (G106; $102.06) - $500m pxd 5/28/25 +117
- CUZ 5.375% due 02/15/32 T+110bp (G118; $102.03) - $400m pxd DEC 2024
- CUZ 5.875% due 10/01/34 T+120bp (G129; $103.97) - $500m pxd AUG 2024

Highwoods Realty Corp (Baa2/BBB-)
- HIW 3.050% due 02/15/30 T+126bp (G130; $92.74) - $400m pxd SEP 2019
- HIW 2.600% due 02/01/31 T+142bp (G140; $88.48) - $400m pxd JUL 2020
- HIW 5.350% due 01/15/33 T+143bp (G142; $100.20) - $350m pxd 11/4/25 +155
- HIW 7.650% due 02/01/34 T+146bp (G160; $113.33) - $350m pxd NOV 2023

Kilroy Realty Corp (Baa3/BBB-/BBB-)
- KRC 3.050% due 02/15/30 T+138bp (G142; $92.32) - $500m pxd SEP 2019
- KRC 2.500% due 11/15/32 T+134bp (G155; $83.10) - $425m pxd AUG 2020

FINAL BOOK:

$400m L7yr - $1.310bn (3.28x) – PEAK $1.830BN 

[GENPACT UK FINCO/GENPACTI USA INC]

Genpact UK Finco plc / Genpact USA, Inc. (G) exp Baa3/BBB- (s/s) US$350m (no grow) SEC registered 5y FXD sr notes due 11/18/30. MWC then 1mo par call (10/18/30). CoC at 101. Guarantor: Genpact Ltd, Genpact Luxembourg Sarl. Citi/JPM/WFS (B&D) joint active books. Denoms: 2,000 x 1,000. Sales into Canada: yes via exemption. UOP: General corporate purposes, which may include repaying or redeeming the 2026 Notes at or prior to their maturity on April 10, 2026. Marketing: https://dealroadshow.com Passcode: G2025. Pricing 11/13. Settle 11/18 (T+3). CUSIP / ISIN: 37256EAA0 / US37256EAA01. 

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

Announced as $350m WNG, we heard initial thoughts as T+160a.

The deal went straight to launch - $350m at T+135bp.

PRICED: $350m 4.95% 11/18/30 99.593 5.043% T+135. MW+25.

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

G 6.000% due 06/04/29 T+96bp (G104; $104.28) - $400m pxd May 2024

However, this bond was considered not active enough to use. 

CONCESSION N/A. 

That said, deal was about 7bp tighter, so some felt there probably WAS some NIC - maybe around 10bp.  But we’re sticking with N/A. 

Comps away:

Kyndryl Holdings (Baa2/BBB-/BBB)
- KD 2.700% due 10/15/28 T+82bp (G83; $95.38) - $449.870m outstanding
- KD 6.350% due 02/20/34 T+131bp (G144; $106.18) - $500m pxd FEB 2024

Global Payments Inc (Baa3/BBB-/BBB)
- GPN 4.875% due 11/15/30 T+119bp (G119; $99.98) - $1.7bn pxd 11/6/25 +120
- GPN 5.550% due 11/15/35 T+149bp (G148; $99.85) - $1.75bn pxd 11/6/25 +150

Flex Ltd (Baa3/BBB-/BBB-)
- FLEX 5.375% due 11/13/35 T+130bp (G129; $99.96) - $600m pxd 11/19/25 +130

TD Synnex Corp (Baa3/BBB-/BBB-)
- SNX 4.300% due 01/17/29 T+80bp (G80; $99.75) - $550m pxd 10/07/25 + 75
- SNX 5.300% due 10/10/35 T+131bp (G131; $99.30) - $600m pxd 10/7/25 +118

FINAL BOOK:

$350m 5yr - $1.10bn (3.14x) - PEAK $1.30BN. 

[M&A TODAY]

Cenovus Energy completed their cash and stock acquisition of MEG Energy today. Cenovus obtained C$2.5bn bridge facility to help fund the cash portion so it is still possible they still hit the market. 

Pfizer completed their acquisition of Metsera for $65.60 per share up front representing an enterprise value of $7bn. There is a CVR for another $20.65 per share taking the total consideration up to $10bn. At announcement Pfizer said they would use cash on hand and new debt to help fund the purchase price. 

On the Euro side:

Novo Nordisk hit the market with €4bn today to help fund their $5.2bn acquisition of Akero Therapeutics announced on 10/09.

L’Oreal hit the market with €3bn yesterday to help fund their €4bn acquisition of the Beauty Division from Kering SA announced on 10/19.

[SSA PRICED]

– Province of Ontario Canada (ONT) Aa3/AA-/AA-/AA (s/s/s/s) US$2bn SEC registered 10y FXD global sr notes due 11/20/35. BMO (B&D)/Citi/GS/HSBC/JPM joint books. Fixed, SA 30/360. Denoms: US$5,000 x US$1,000. List Lux (Euro MTF). Law: Province of Ontario/Canada. Pricing 11/13. Settle 11/20 (T+5).

UPDATE: spread set at SOFR MS+78 (currently equiv ~ new CT10+38.1). Orderbook update: in excess of $13bn (incl. $100m JLM interest).
LAUNCHED: $2bn 10y at SOFR MS+78. Orderbook in excess of $15bn incl. $200m JLM interest.

PRICED: $2bn 4.45% 11/20/35 99.848 4.469% SOFR MS+78 (T+36.85).

– IDB Invest (Inter-American Investment Corporation) (Ticker: "IDBINV") exp Aa1/AA+/AAA (Stable/Positive/Stable) US$1bn (no grow) Global SEC Exempt 3y FXD due 11/20/28. BMO (B&D)/BNP/Daiwa/HSBC joint books. Coupon: Fixed, semi-annual, 30/360. Listing: London Stock Exchange’s regulated market. Denoms: US$1,000 + US$1,000. Docs: Issuer’s Global Debt Program. Law: New York. Clearing: DTC, Euroclear, Clearstream. Target Market: For UK MiFIR and MIFID II purposes, Eligible Counterparties, Professional and Retail Clients (all distribution channels). Pricing 11/13. Settle 11/20 (T+5).

IPTs: SOFR MS+39 area (equiv. to CT3+16.5 area).
GUIDANCE: SOFR MS+37 area. IOIs in excess of $2.3bn (incl $100m JLM int).
UPDATE: spread set at SOFR MS+35. Books in excess of $2.8bn (incl $100m JLM int).

PRICED: $1bn 3.625% 11/20/28 99.738 3.718% SOFR MS+35.

[NEW MANDATES & MARKETING]

– AptarGroup, Inc. (“Aptar” or the “Company”, Ticker: ATR) (Baa2, Stable Outlook by Moody’s;  BBB, Stable Outlook by S&P; and BBB, Stable Outlook by Fitch*) has mandated J.P. Morgan, PNC Capital Markets LLC, Societe Generale, and Wells Fargo Securities to arrange a series of fixed income investor calls to be held Friday, November 14th.  A pre-recorded electronic presentation will be made available.

Wells Fargo Securities is coordinating logistics.

Aptar Representatives:

• Vanessa Kanu - Executive Vice President and Chief Financial Officer
• Douglas Pearson - Vice President and Group Treasurer

Schedule for Friday, November 14th:

• 9:30 - 10:30 ET  |  Registration Link:  https://evercall.co/oacc/69163
• 11:00 - 12:00 ET  |  Registration Link:  https://evercall.co/oacc/19850

Pre-Recorded Electronic Presentation Details:

Direct Link:  https://dealroadshow.com/e/APTAR25 (Recommended) or visit https://dealroadshow.com and enter code: APTAR25

About the Company:

Aptar is a global leader in drug and consumer product dosing, dispensing and protection technologies. Aptar serves a number of attractive end markets including pharmaceutical, beauty, food, beverage, personal care and home care. Using market expertise, proprietary design, engineering and science to create innovative solutions for many of the world’s leading brands, Aptar in turn makes a meaningful difference in the lives, looks, health and homes of millions of patients and consumers around the world.