Commentary & Deal Flow

The US IG primary saw another double-digit deal day with 10 deals pricing for $7.650bn.  This follows Monday (11 deals/$26.475bn) and Tuesday (10 deals/$12.500bn).  This makes 3 double-digit deal days in a row – something we’ve only seen once in 2025 so far - Labor Day Tues-Thurs.

Just FYI, the following Monday and Tuesday after Labor Day were also double-digit days (09/08 17 deals/$27.850bn; Tues 09/09/25 10 deals/$9.875bn)

The week's total is now $16.815bn above the average estimate:

Other notables today include the following:

AVB's 4.350% coupon ranked 2nd through 2023 for 5yr reits:

And its spread at T+68 ranked 5th for 5yr reits through 2022:

BBLTB managed to grab low BBB Yankee Fig Spread notables:

with its 10y tying the top spot through 2009 at T+97bp with AER from 9/22/25:

And BBLTB's 5y ranking 3rd through 2009 at T+87bp as well:

Turning to oversubscriptions, BAX 3yr today ranked as the largest 3yr BBB O/S ytd and ranks in the top 5 through 2020:

And IPO VSPOPT at 9.40x oversubscribed ranks 10th for largest IPO O/S through 2020:

HERE'S TODAY'S RUNDOWN:

[BAXTER INTL] 

Baxter International Inc (BAX) exp Baa3/BBB- (s/s) US$2bn SEC registered 3-part sr notes (long 3y FXD due 2/15/29, 5y FXD due 12/15/30 and 10y FXD due 12/15/35). MWC then 1mo par call on L3y (1/15/29), 1mo on 5y (11/15/30) and 3mos on 10y (9/15/35). 101 CoC. BofA/Citi (B&D)/JPM joint active books. Coupon Step-up: 25bp per rating agency (Moody's and S&P) per notch below Investment Grade, capped at 1.00% per agency (2.00% total). Coupon steps fall away permanently at Baa2 / BBB. Denoms: 2,000 x 1,000. Sale into Canada: Yes - Exemption. UOP: to (i) fund the Concurrent 2026 Notes Tender Offer, (ii) discharge all of the 2026 Notes not purchased by the Concurrent 2026 Notes Tender Offer, (iii) refinance our outstanding U.S. dollar-denominated term loan facility and (iv) fund the Concurrent 2027 Notes Tender Offer. Pricing 11/19. Settle 12/4 (T+10). Cusip: L3y: 071813DC0, 5y: 071813DD8, 10y: 071813DE6. ISIN: L3y: US071813DC01, 5y: US071813DD83, 10y: US071813DE66.

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

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

L3YR – IPT T+130a; STL T+90; PXD $300m 4.45% 2/15/29 99.932 4.475% T+90. MW+15.
5YR – IPT T+155a; STL T+125; PXD $700m 4.90% 12/15/30 99.826 4.939% T+125. MW+20.
10YR – IPT T+185a; STL T+155; PXD $1bn 5.65% 12/15/35 99.899 5.663% T+155. MW+25.

The last time Baxter was in the market was in late 2021 with a $7.800bn 8-part trade to partially finance its $12.400bn acquisition of Hill-Rom.  This bond did not have coupon steps.

- BAX 2.272% due 12/01/28 T+93bp  (G93; $93.77) - $1.25bn pxd NOV 2021
- BAX 2.539% due 02/01/32 T+99bp  (G130; $86.53) - $1.55bn pxd NOV 2021

If you were to work from the ‘32s; adding in 10-15bp for the curve and a couple for lo$  this would leave f/v on a no-step BAX 10yr at around T+145bp (so 40bp back start at the T+185a IPT for a no-steps 10yr). 

From here, you’d have to figure out what steps should be worth for this name, and to be honest we haven’t gotten a lot of direction on coupon-step value in general  this year.  There haven’t been many coupon step trades in 2025 to begin with, and most of those had outstandings that didn’t really make it easy to peg a step/no-step differential. 

The standard answer on coupon-step value historically has been 25bp.  Working from the T+145bp 10yr no-step f/v level, subtracting 25bp would put 10yr “w/steps” f/v at T+120bp - and suggest a 35bp NIC at the T+155bp pricing level. But many agreed a 35bp NIC didn’t really feel right.  

Clearly the coupon steps have to be worth something.  But we didn’t get any solid feedback on the value.  So, once again, it’s another CONCESSION N/A on a 2025 steps trade. 

Books definitely didn’t show many drops. 

FINAL BOOKS:

$300m L3yr - $3.100bn (10.33x) - PEAK $3.700bn

$700m 5yr - $4.100bn (5.86x) - PEAK $4.200bn

$1bn 10yr - $5.300bn (5.30x) - PEAK $5.300bn

[BANGKOK BANK] 

Bangkok Bank PCL/Hong Kong (BBLTB), exp issue ratings Baa1/BBB+ (issuer ratings Baa1/BBB+/BBB (n/s/s)), US$1.1bn 144A/Reg S 2-part sr notes (5y FXD due 11/26/30 and 10y FXD due 11/26/35). MWC (T+15 on 5y and T+20 on 10y), then 1mo par call on 5y (10/26/30) and 3mos on 10y (8/26/35). Denoms: USD 200,000 x USD 1,000. Governing Law: English Law. Listing: Application will be made for the Securities to be listed on the SGX-ST. Format: 144A/Reg S, drawdown from US$9bn GMTN program. UOP: gcp. Netroadshow: Netroadshow Link, passcode: BB2025 (not case-sensitive). Pricing 11/19. Settle 11/26 (T+5). 

VIA MS (B&D)/Citi/HSBC joint books. 

Announced as a benchmark, we heard initial price thoughts as 5y T+115 area, 10y T+130 area.

Guidance came in at 5y T+82#, 10y T+97#.

Ultimately, a $1.1bn deal priced as follows:

$500m 4.507% 11/26/30 100.00 4.507% T+82. MW+15.

$600m 5.082% 11/26/35 100.00 5.082% T+97. MW+20.

 As for r/v, outstanding BBLTB was quoted as follows:
-BBLTB 5.650% due 07/05/34 T+74bp (G86; $105.162) - $750M pxd Jun 2024

**10yr –  Outstanding BBLTB Jul 34s G86; plus 6bp for curve to Dec 35, f/v is T+92bp. 

** 5yr - 10yr f/v T+92bp; minus 15bp 5s/10s curve at IPT = T+77bp f/v. 

10yr f/v T+92/Pxd T+97;  5yr f/v T+77bp/Pxd T+82 looks like a 5bp concession to us. 

However, we heard Asia desks were calling IPT on this 30bp back of f/v, and both tranches tightened 33bp. We’re not sure how they get to f/v, but this would suggest a neg 3bp NIC. 

Maybe we’ll get more tomorrow, but for now we have to go CONCESSION N/A. 

Comps away:

PTTEP Treasury Center Co (Baa1/N/A/BBB+)
-PTTEPT 2.993% due 01/15/30 T+67bp (G72; $94.693) - $350M pxd Jan 2020

FINAL BOOKS:

$500m 5yr - $1.300bn (2.60x)

$600m 10yr - $1.500bn (2.50x)

[EOG RESOURCES] 

EOG Resources Inc (EOG) exp A3/A- (s/s) US$1bn SEC registered 2-part sr notes (new long 5y due 1/15/31 and tap of EOG 5.95% 7/15/55 - $500m outstanding). MWC (T+15 on tap), then 1mo par call on L5y (12/15/30) and 6mos on tap (1/15/55). Denoms: 2,000 x 1,000. Sale into Canada: Yes - Exemption. Prohibited Sales: China / Hong Kong. UOP: general corporate purposes, including the repayment of the $750MM 4.15% notes due January 2026. Pricing 11/19. Settle 11/24 (T+3). Cusip: L5y: 26875PBB6, 2055 tap: 26875PBA8. ISIN: L5y: US26875PBB67, 2055 tap: US26875PBA84.

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

Announced with benchmark size, final size came in at $1bn with price progression as follows:

L5yr - IPT T+100 area; GDNC T+73#; PXD $750m 4.40% 1/15/31 99.941 4.414% T+73. MW+15.

2055 tap - IPT T+135 area; GDNC T+105#; PXD $250m tap of 5.95% 7/15/55 at 102.315 5.784% T+105. MW+15. Total outstanding now $750m.

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

-EOG 4.400% due 07/15/28 T+40bp (G40; $101.05) - $500m pxd 06/16/25 +50
-EOG 4.375% due 04/15/30 T+53bp (G58; $100.61) - $750m pxd APRL 2020
-EOG 5.000% due 0715/32 T+78bp (G82; $101.92) - $1.25bn pxd 06/16/25 +80
-EOG 5.350% due 01/15/36 T+95bp (G96; $102.21) - $1.25bn pxd 06/16/25 +90
-EOG 5.950% due 07/15/55 T+108bp ($101.88) - $500m pxd 06/16/25 +100

*** 2055 tap: Outstanding Jul ‘55 spotted at T+108bp. At the T+105bp pricing level, 2055 CONCESSION IS NEG 3BP.

*** L5yr: Jan ‘36 G96 call L10y f/v at 96bp. Take away 25bp for L10s/L5s curve gets f/v to T+71bp. At the T+73bp pricing level, L5yr CONCESSION IS 2BP. With that said you can argue nic is anywhere between flat and +3bp with slightly different curve adjustment or outstanding level, so we’re sticking with +2bp.

FINAL BOOKS:

$750m L5yr - $2.500bn (3.33x) - PEAK $3.100bn

$250m 2055 Tap - $1.200bn (4.80x) - PEAK $2.100bn

[SMBC AVIATION] 

SMBC Aviation Capital Finance DAC (SMBCAC), exp A-/BBB+ (s/s) by S&P/Fitch, US$750m 144A/Reg S no reg rights 10y FXD sr notes due 11/26/35. MWC then 3mos par call (8/26/35). SMBC/BofA/CACIB/Citi/GS/RBC joint active books. Guarantor: SMBC Aviation Capital Ltd. Denoms: 200,000 x 1,000. Sale into Canada: Yes, via exemption. Pricing today. Settle 11/26 (T+5). 144A CUSIP: 78448TAP7. 144A ISIN: US78448TAP75.

VIA SMBC/BofA/CACIB/Citi/GS/RBC joint active books.

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

Guidance came in at T+115#.

Ultimately, a $750m deal priced as follows:

$750m 5.25% 11/26/35 99.900 5.263% T+115. MW+20.

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

- SMBCAC 5.100% due 04/01/30 T+84bp (G88; $102.18) - $500m pxd 3/24/25 +103
- SMBCAC 5.550% due 04/03/34 T+91bp (G106; $103.40) - $850m pxd MAR 2024

*Apr ‘34s G106 + 4bp curve = T+ 110.  At the T+115bp pricing level, CONCESSION IS 5BP. 

Some said a good chunk of feedback suggested SMBCAC should come back of the AER ‘35s which are trading at G110. So using these parameters, a full 5bp NIC might seem a bit steep, but not unreasonable vs the directs. 

AerCap Ireland Capital DAC/AerCap Global Aviation Trust (Baa1/BBB+)
- AER 4.375% due 11/15/30 T+80bp (G80; $99.45) - $600m pxd 9/22/25 +75
- AER 5.000% due 11/15/35 T+110bp (G110; $98.24) - $600m pxd 9/22/25 +97

 FINAL BOOK:

$750m 10yr - $2.5bn (3.33x) - PEAK $3.600BN

[FIBRA PROLOGIS] 

Fideicomiso Irrevocable 1721, Banco Actinver, S.A., Institución de Banca Múltiple, Grupo Financiero Actinver, División Fiduciaria ("Fibra Prologis") (FIBRAP), exp issue ratings BBB+/BBB (s/s) by S&P/Fitch, US$500m (no grow) 144A/Reg S 10y sr notes due 11/26/35. MWC then 3mos par call (8/26/35). Tax Redemption. REIT Covenants. Denoms: US$200,000 x US$1,000. Governing Law: New York. Listing: Singapore Stock Exchange (SGX - ST). Sales into Canada: Yes, via exemption. Selling Restriction: No Sales into Japan. UOP: general corporate purposes, which may include repaying borrowings under a term loan, revolving credit facility, and repayment of maturing secured debt. Marketing: Investor Login Details: URL: https://dealroadshow.com / Entry Code: PROLOGIS25 / Direct Link: https://dealroadshow.com/e/PROLOGIS25. Pricing 11/19. Settle 11/26 (T+5). 144A CUSIP: 31575KAA3. 144A ISIN: US31575KAA34.

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

Announced as a $500m will-not-grow transaction, we heard IPTs in the T+170 area.

The deal went straight to launch at T+145bp. Ultimately it priced as follows:

$500m 5.500% 11/26/35 99.401 yld 5.579%. T+145bp. MW+25

FINAL BOOK: $1.100bn 10y (2.20x). PEAK - $1.500bn

As for RV, FIBRA Prologis’s sponsor, Prologis, is the world’s largest logistics REIT and retains a 35%+ stake in the issuer (Prologis management was on DealRoadshow presentation).

The prime way to look at this was a spread to Prologis (PLD), which has a $750m A2/A rated 5.25% 05/15/2035 at G+87bp, putting fair value for a new 10 year at 90bp (though a couple of quotes away from the deal put the PLD 2035s @ 85bp, so 10y FV in the high 80s).

It was then a question of adding premium for rating (worth 30bp-35bp in the US IG market, depending on who you ask). On top of that there’s some premium for both EM and format (PLD bonds are SEC-registered, FIBRAP is 144A/Reg S). For context, bottling firm Coca-Cola Femsa is about 55bp wide of Coca-Cola, with a narrower ratings differential, and both are SEC-registered.

Undoubtedly the sponsor helped FIBRAP (BBB+/BBB) land c. 30bp inside the Mexico sovereign curve (Baa2/BBB/BBB-), though notably Vesta – the last Mexican REIT to issue back on 09/24/25 – also trades just inside the sovereign despite being lower rated (BBB-/BBB-).

Indeed, some EM-focussed bankers/investors were looking at Mexican comps rather than Prologis; note that there’s no guarantee/cross-default with PLD. Our impression was that this method made it look a lot tighter. The $500m VESTA 5.50% 01/30/2033 notes were at G+150bp, with the curve extension worth 20bp to +170bp for 10y FV, so FIBRAP came 25bp inside its peer.

“That is very tight and must be down to the quality of the tenants,” said one LatAm banker off the deal. Backing that up, analysts at Seminario argued FIBRAP should be 15bp-25bp inside VESTA, and this was right at the tight end of that range.

One source close to the deal said it was “not a surprise” that the book (2.2x oversubscribed final) wasn't massive given the deal landed inside the sovereign, but “the right US IG buyers comfortable with some Mexico risk found the deal attractive”. EM buyers were “generally a bit more price sensitive", though still well represented.

Intuitively there was little if any NIC on this, but as a debut issuer CONCESSION IS N/A.

[GOLDMAN SACHS PRIVATE CREDIT CORP]

Goldman Sachs Private Credit Corp (GSCRED) exp Baa3/BBB-/BBB- (s/s/s) US$500m (up from $300m) 144a/Reg S with reg rights long 5y sr notes due 1/31/31. MWC then 1mo par call (12/31/30). 100 CoC.Denoms: 2,000 x 1,000. Sale into Canada: Yes - Exemption. UOP: repay a portion of the outstanding indebtedness under the Company’s Credit Facilities and for general corporate purposes (See Red). Marketing: https://dealroadshow.com/e/GSPCC25DEAL. Pricing 11/19. Settle 11/24 (T+3). 144A Cusip: 38152BAG6. 144A ISIN: US38152BAG68. 

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

Announced with $300m size, we heard initial price thoughts as T+262.5 area.

Guidance came in at T+245#. Upsized at launch to $500m

Ultimately, a $500m deal priced as follows:

$500m 5.875% 1/31/31 98.751 6.155% T+245. MW+40.

GSCRED testing the water today after  As for r/v, outstanding GSCRED was quoted as follows:
-GSCRED 5.875% due 05/06/28 T+180bp (G180; $101.14) - $400M pxd Apr 2025
-GSCRED 5.375% due 01/31/29 T+200bp (G199; $99.47) - $400M pxd 10/09/25 +200
-GSCRED 6.250% due 05/06/30 T+225bp (G228; $101.23) - $600M pxd Apr 2025
** Outstanding GSCRED May 30s G228; plus 5-7bp for extension into Jan, call f/v in the middle = 234bp. At the T+245bp pricing level, CONCESSION IS 11BP.

Camps away:

Goldman Sachs BDC Inc (Baa3/N/A/BBB-)
-GSBD 5.650% due 09/09/30 T+198bp (G199; $99.96) - $400M pxd 09/04/25 +200

Ares Strategic Income Fund (Baa3/BBB-/BBB-)
-ARESSI 4.850% due 01/15/29 T+192bp (G191; $98.2) - $600M pxd 09/08/25 +160

-ARESSI 5.800% due 09/09/30 T+207bp (G208; $100.21) - $500M pxd 06/02/25 +203

-ARESSI 5.150% due 01/15/31 T+210bp (G208; $97.24) - $500M pxd 09/08/25 +185

Blackstone Private Credit (Baa2/BBB-/N/A)
-BCRED 7.300% due 11/27/28 T+155bp (G155; $105.91) - $646M exch. Oct 2024

-BCRED 5.250% due 04/01/30 T+180bp (G184; $99.11) - $397M exch. Apr 2025

-BCRED 5.050% due 09/10/30 T+195bp (G196; $97.58) - $500M pxd 09/03/25 +160

Golub Capital Cap Fnd (Baa3/BBB-/N/A)
-GCRED 5.450% due 08/15/28 T+182bp (G182; $100.16) - $500M pxd 07/16/25 +183

-GCRED 5.800% due 09/12/29 T+193bp (G200; $100.63) - $499M exch.  May 2025

-GCRED 5.875% due 05/01/30 T+199bp (G203; $100.78) - $500M pxd May 2025

Blue Owl Credit Income (Baa3/BBB-/BBB-)
-OCINCC 7.950% due 06/13/28 T+185bp (G185; $105.84) - $650M pxd Apr 2024

-OCINCC 7.750% due 01/15/29 T+203bp (G214; $105.68) - $549M exch. Apr 2024

-OCINCC 5.800% due 03/15/30 T+220bp (G224; $99.71) - $998M exch. Apr 2025

-OCINCC 6.650% due 03/15/31 T+243bp (G241; $102.38) - $750M pxd Apr 2024

HPS Corporate Lending Fu (Baa3/BBB-/N/A)

-HLEND 4.900% due 09/11/28 T+181bp (G181; $98.8) - $600M pxd 09/04/25 +155

-HLEND 5.850% due 06/05/30 T+212bp (G214; $100.22) - $500M pxd 05/29/25 +195

-HLEND 5.450% due 11/15/30 T+222bp (G222; $98.08) - $500M pxd 09/04/25 +#N/A N/A

Sixth Street Lending Par (Baa3/N/A/BBB-)
-SIXSLP 6.500% due 03/11/29 T+170bp (G181; $103.29) - $749M exch. Dec 2024

-SIXSLP 5.750% due 01/15/30 T+190bp (G195; $100.62) - $599M exch. Dec 2024

-SIXSLP 6.125% due 07/15/30 T+194bp (G196; $102.02) - $750M pxd Jan 2025

FINAL BOOKS:

$500m L5yr - $1.750bn (3.50x) - PEAK $1.950bn

[ELEMENT FLEET MANAGEMENT] 

Element Fleet Management Corp (EFNCN), exp BBB/BBB+ (s/s) via S&P/Fitch, US$500m 144A/Reg S no reg rights 5y sr notes due 11/24/30. MWC then 1mo par call (10/24/30). 101 CoC. Denoms: 2,000 x 1,000. Sale into Canada: Yes - Wrapper. UOP: working capital and general corporate purposes, which may include the repayment of existing indebtedness. Marketing: ww.netroadshow.com Passcode: EFNCN25. Pricing 11/19. Settle 11/24 (T+3). 144A Cusip: 286181AR3. 144A ISIN: US286181AR39.

VIA BofA (B&D)/BMO/BNP/RBC/WFS joint active books.

Announced with benchmark size, we heard initial thoughts as T+125 area.

Went straight to launch at $500m 5y at T+95.

Ultimately, a $500m deal priced as follows:

$500m 4.641% 11/24/30 100.00 4.641% T+95. MW+15.

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

-EFNCN 5.643% due 03/13/27 T+61bp (G55; $101.74) - $750m pxd MAR 2024
-EFNCN 6.319% due 12/04/28 T+80bp (G80; $105.36) - $750m pxd NOV 2023
-EFNCN 5.037% due 03/25/30 T+85bp (G88; $101.92) - $650m pxd MAR 2025

*** Mar ‘30 G88, add 4bp for curve gets f/v to T+92bp. At the T+95bp pricing level, CONCESSION IS 3BP.

COMPS AWAY:

Pense Truck Leasing (Baa2/BBB/BBB+)
-PENSKE 5.350% due 01/12/27 T+71bp (G63; $101.10) - $500m pxd JAN 2024
-PENSKE 6.050% due 08/01/28 T+74bp (G74; $104.27) - $1.1bn pxd JUL 2023
-PENSKE 5.250% due 07/01/29 T+72bp (G80; $102.73) - $700m pxd JUN 2024
-PENSKE 5.250% due 02/01/30 T+77bp (G81; $102.96) - $750m pxd JAN 2025

GATX Corp (Baa2/BBB/BBB+)
-GMT 5.400% due 03/15/27 T+66bp (G60; $101.40) - $350m pxd FEB 2024
-GMT 5.500% due 06/15/35 T+109bp (G114; $102.19) - $700m pxd FEB 2025
-GMT 6.050% due 06/05/54 T+124bp ($100.98) - $900m pxd JUN 2024

Ryder System Inc (Baa2/BBB+/BBB+)
-R 5.300% due 03/15/27 T+62bp (G56; $101.32) - $350m pxd FEB 2024
-R 6.300% due 12/01/28 T+60bp (G60; $105.87) - $400m pxd OCT 2023
-R 4.900% due 12/01/29 T+65bp (G70; $102.03) - $300m pxd OCT 2024
-R 4.300% due 12/01/30 T+75bp (G74; $99.40) - $300m pxd 10/27/25 +73
-R 6.600% due 12/01/33 T+75bp (G92; $111.15) - $600m pxd OCT 2023

FINAL BOOKS:

$500m 5yr - $1.650bn (3.30x) - PEAK $2.200bn

[VSP OPTICAL] 

VSP Optical Group Inc (VSPOPT), exp Baa2/A (s/s) by Moody's/Fitch, US$500m (no grow) 144A/Reg S 10y FXD sr notes due 12/1/35. MWC then 3mos par call (9/1/35). 101 CoC. Guarantor: Vision Service Plan and each of VSP’s existing and future wholly-owned domestic subsidiaries that guarantee the Credit Facility. Pricing 11/19. Settle 11/24 (T+3). 144A Cusip: 91836LAA0. 144A ISIN: US91836LAA08. 

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

Announced as $500m no grow, we heard initial thoughts as T+170 area.

Went straight to launch at T+135.

Ultimately, a $500m deal priced as follows:

$500m 5.45% 12/1/35 99.777 5.479% T+135. MW+25.

As for r/v, this is VSPOPT’s debut issuance thus CONCESSION N/A.

Alcon Finance Corp (Baa1/BBB+)
-ALCSW 5.375% due 12/06/32 T+55bp (G80; $104.13) - $700m pxd NOV 2022

Cigna Group (Baa1/A-/BBB+)
-CI 5.250% due 01/15/36 T+98bp (G99; $101.25) - $1.5bn pxd 09/02/25 +100

Elevance Health Inc (Baa2/A-/BBB+)
-ELV 5.200% due 02/15/35 T+87bp (G95; $101.59) - $1.2bn pxd OCT 2024

Health Care Service Corp A Mutual Legal Reserve Co (Baa1/A)
-HCSERV 5.450% due 06/15/34 T+96bp (G109; $102.56) - $750m pxd JUN 2024

Highmark Inc (Baa2/A-)
-HIMARK 2.550% due 05/10/31 T+134bp (G129; $88.32) - $400m pxd MAY 2021

Humana Inc (Baa2/BBB/BBB)
-HUM 5.550% due 05/01/35 T+126bp (G132; $101.35) - $750m pxd MAR 2025

HCA Inc (Baa2/BBB-)
-HCA 4.900% due 11/15/35 T+102bp (G102; $98.25) - $1bn pxd 10/27/25 +95

Laboratory Corp of America (Baa2/BBB)
-LH 4.800% due 10/01/34 T+85bp (G94; $98.89) - $850m pxd SEPT 2024

Quest Diagnostics Inc (Baa1/BBB+/BBB+)
-DGX 5.000% due 12/15/34 T+78bp (G87; $100.83) - $850m pxd AUG 2024

Universal Health Services (Baa3/BBB-/BBB-)
-UHS 5.050% due 10/15/34 T+132bp (G140; $97.40) - $500m pxd SEPT 2024

Zimmer Biomet Holdings (Baa2/BBB/BBB)
-ZBH 5.500% due 02/19/35 T+93bp (G101; $103.32) - $600m pxd FEB 2025

FINAL BOOK:

$500m 10yr - $4.700bn (9.40x) - PEAK $5.400bn

[AVALONBAY COMMUNITIES] 

AvalonBay Communities Inc (AVB) exp A3/A- US$400m SEC registered 5y FXD sr notes due 12/1/30. MWC then 1mo par call (11/1/30). Denoms: 2,000 x 1,000. Sale into Canada: Yes - Exemption. UOP: gcp. Pricing 11/19. Settle 12/1 (T+7). CUSIP: 053484AH4. ISIN: US053484AH47. 

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

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

Went straight to launch at $400m 5y at T+68.

Ultimately, a $400m deal priced as follows:

$400m 4.35% 12/1/30 99.956 4.360% T+68. MW+15.

 As for r/v, outstanding AVB was quoted as follows:
-AVB 1.900% due 12/01/28 T+55bp (G55; $93.73) - $400M pxd Nov 2021
-AVB 2.300% due 03/01/30 T+64bp (G68; $92.16) - $700M pxd Feb 2020
-AVB 2.450% due 01/15/31 T+73bp (G71; $91.02) - $600M pxd May 2020
-AVB 5.000% due 02/15/33 T+61bp (G85; $101.6) - $350M pxd Nov 2022
-AVB 5.350% due 06/01/34 T+74bp (G88; $103.31) - $1.5B pxd May 2024
-AVB 5.000% due 08/01/35 T+83bp (G87; $100.28) - $400M pxd 06/30/25 +85

** Outstanding Aug 35s G87; plus 1bp for curve (Aug 35 to Dec 35) = T+88bp for a new 10 yr; then take off 20bp for 5s/10s curve, f/v is T+68, At the T+68bp pricing level, CONCESSION IS FLAT.

FINAL BOOKS:

$400m 5yr - $1.100bn (2.75x) - PEAK $1.700bn

[WESTERN ALLIANCE BANK] 

Western Alliance Bank (WAL), exp Baa3/BBB-/BBB+ (s/s/s) by Moody's/Fitch/Kroll, US$400m (upsized from $300m)  3(a)2 exempt 10nc5 fixed rate reset subordinated unsecured notes due 11/15/35. Reset Date: 11/15/30. Interest Rate: (i) from and including November 24, 2025 to, but excluding, November 15, 2030, a fixed rate per annum equal to [ • ]%. (ii) From and including November 15, 2030 (the “reset date”), to, but excluding, the maturity date, a fixed rate per annum equal to the U.S. Treasury Rate for a five-year maturity as of the reset determination date, plus a spread of [ • ] basis points. Optional Redemption: (i) in whole, but not in part, on November 15, 2030 and (ii) in whole or in part, at any time or from time to time, on or after August 17, 2035. Denoms: 100,000 x 1,000. Sale into Canada: Yes - Exemption. UOP: for general corporate purposes, which may include providing capital to support our growth and capital adequacy and the repayment, redemption or repurchase of existing securities. Pricing 11/19. Settle 11/24 (T+3). CUSIP: 95758BCL1. ISIN: US95758BCL18.

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

Announced with $300m size, we heard IPT at T+312.5-T+325bp.

The deal went straight to launch at an increased $400m at T+285bp. 

PRICED: $400m 6.537% 11/15/35 100.00 6.537% T+285. 

FINAL BOOKS: $400m 10nc5 Sub - $1.750bn (4.38x)

[NEW MANDATES & MARKETING]

CF Industries Inc. (the “Company”), rated Baa2 (stable) by Moody’s, BBB (stable) by S&P, and BBB (stable) by Fitch, has mandated Goldman Sachs & Co. LLC, BMO Capital Markets, and Citigroup to arrange a series of fixed income investor calls on Wednesday, November 19th. An electronic presentation with a voiceover recording has been made available. Goldman Sachs & Co. LLC is coordinating logistics.

Company Participants

• Greg Cameron – Executive Vice President, CFO
• Martin Jarosick – Vice President, Treasury & Investor Relations

Investor Call Schedule for Wednesday, November 19th

• Call #1: 11:00am-11:45am ET | Pre-Registration Link: https://evercall.co/oacc/79285
• Call #2: 12:00pm-12:45pm ET | Pre-Registration Link: https://evercall.co/oacc/47621
• Call #3: 1:00pm-1:45pm ET | Pre-Registration Link: https://evercall.co/oacc/80174

Electronic Presentation details:

URL: https://dealroadshow.com

Entry Code: CF2025

Direct Link: https://dealroadshow.com/e/CF2025

About CF Industries Inc.

CF Industries is a leading global producer of hydrogen and nitrogen products. The Company is the largest global producer of ammonia and a manufacturer of nitrogen fertilizers and industrial nitrogen products. The Company’s production facilities include six manufacturing complexes in the US, two in Canada, one in the UK, and a joint venture in Trinidad and Tobago. The Company has annual capacity to produce between 19 - 20 million product tons of various nitrogen products.