Commentary & Deal Flow

​IG surpassed the December average estimate after pre-Fed Monday priced a total of $3.525bn from 6 issuers. TXNM moved from the pipeline and priced a debut $350m 30.5nc5.25 Jr Sub trade.

We also counted 4 shops that had 1 stand down each. Two deals remains in the pipeline, of which Grupo Norte Energia wrapped up investor calls today and could go as soon as tomorrow.

A total of three FABN issuers were in the market today, adding more supply to December after PROTLI and WSFIN from last week. EQH and GUARDN each issued their 4th deal of the year:

* 3 from Equitable America GF + 1 Equitable Fin Life GF

As for notables,

GUARDN priced a 4.402% coupon, the 5th lowest for any 5yr FABN since 2023, and also marking GUARDN's 3rd appearance on this list:

Here's today's rundown:

[BNP]

BNP Paribas SA (BNP), exp issue ratings Ba1/BBB-/BBB (issuer ratings A1/A+/A+), US$1.25bn 144A/Reg S fixed rate reset PerpNC8 Additional Tier 1 Contingent Convertible Notes. Reset Dates: 12/15/33 (the “First Reset Date”) and each fifth anniversary date thereafter. Coupon: Fixed rate of [•]% per annum from (and including) the Issue Date to (but excluding) the First Reset Date. Thereafter, coupon will be reset every 5 years to a fixed rate based on the then-applicable CMT Rate + the initial margin of [•] bps (no step-up). Interest is payable semi-annual in arrear in equal installments on June 15 and December 15 of each year, commencing on June 15, 2026 (subject to cancellation). Pricing 12/8. Settle 12/15 (T+5).

VIA BNP as global coordinator and sole bookrunner.

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

Guidance came in at 6.875%#.

Ultimately, the $1.25bn deal priced as follows:

PRICED: $1.25bn, 6.875% at 100. Back-end reset: Interpolated T+285.3.

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

-BNP 8.000% PerpNC 08/22/31 $107.625 (G260; 6.375% YTC) - $1.5bn pxd FEB 2024 b/e +372.7
-BNP 7.375% PerpNC 09/10/34 $104.125 (G312; 6.740% YTC) - $1bn pxd SEPT 2024 b/e +353.3
-BNP 7.450% PerpNC 06/27/35 $104.125 (G319; 6.850% YTC) - $1.5bn pxd JUN 2025 b/e +313.4

*** Focusing on their most recent Perp AT1: NC Jun ’35 6.850% YTC, minus 10bp for ‘35/’33 curve = 6.750%.  (heard no back end differential adjustment). 

At the 6.875% pricing level, CONCESSION IS 12.5BP. 

COMPS AWAY:

HSBC (Baa3/NR/BBB)
-HSBC 6.950% PerpNC 08/27/31 $104.000 (G268; 6.110% YTC) - $1.5bn pxd FEB 2025 b/e +263.5
-HSBC 6.950% PerpNC 09/15/34 $104.875 (G260; 6.190% YTC) - $1.15bn pxd SEPT 2025 b/e +319.1

UBS (Baa3/BB/BBB-)
-UBS 6.600% PerpNC 08/05/30 $101.125 (G294; 6.315% YTC) - $750m pxd JUL 2025 b/e +312.3
-UBS 7.000% PerpNC 02/05/35 $101.875 (G308; 6.720% YTC) - $1.25bn pxd JUL 2025 b/e +329.6

ING Groep NV (Ba1/NR/BBB)
-INTNED 7.000% PerpNC 11/16/32 $103.625 (G284; $6.350% YTC) - $1.5bn pxd SEPT 2025 b/e +359.4

Nordea Bank Abp (NR/BBB/BBB+)
-NDAFH 6.750% PerpNC 11/10/33 ($102.625 (G276; 6.320% YTC) - $850m pxd SEPT 2025 b/e +272.3

Standard Chartered PLC (Ba1/BB-/BBB-)
-STANLN 7.625% PerpNC 01/16/32 $106.250 (G292; 6.370% YTC) - $1bn pxd JAN 2025 b/e +302.3
-STANLN 7.000% PerpNC 11/14/35 $102.750 (G293; 6.620% YTC) - $1bn pxd NOV 2025 b/e +287.3

Lloyds Banking Group PLC (Baa3/BB/BBB)
-LLOYDS 6.750% PerpNC 09/27/31 $103.375 (G267; 6.100% YTC) - $1bn pxd SEPT 2024 b/e +315.0
-LLOYDS 6.625% PerpNC 09/27/35 $99.250 (G310; 6.780% YTC) - $1bn pxd OCT 2025 b/e +268.1

Credit Agricole SA (Baa3/BBB-/BBB)
-ACAFP 7.125% PerpNC 09/23/35 $103.750 (G298; 6.660% YTC) - $1.25bn pxd SEPT 2025 b/e +358.4

Barclays PLC (Ba1/BB-/BBB-)
-BACR 7.625% PerpNC03/15/35 $105.875 (G317; 6.820% YTC) - $1.5bn pxd FEB 2025 b/e +368.6

FINAL BOOK

$1.25bn PerpNC8 AT1 - $8.000bn (6.40x)

[GUARDIAN LIFE GF]

Guardian Life Global Funding (GUARDN) exp Aa1/AA+ (s/s) US$600m 5y FXD sr secured FA-Backed due 12/11/30. FA Provider: The Guardian Life Insurance Company of America. Denoms: 2,000 x 1,000. Sales into Canada: Yes, via exemption. UOP: To purchase a Funding Agreement from The Guardian Life Insurance Company of America. Pricing 12/8. Settle 12/11 (T+3). 

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

Announced with benchmark size, we heard initial thoughts as T+90 area.

Guidance came in at T+65#.

Ultimately, a $600m deal priced as follows:

$600m 4.402% 12/11/30 100.00 4.402% T+65.

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

-GUARDN 4.066% due 09/05/28 T+50bp (G51; $99.9) - $550M pxd 9/02/25 +45

-GUARDN 4.327% due 10/06/30 T+59bp (G60; $100.1) - 650M pxd 9/30/25 +60

*  Outstanding Oct ‘30s G60. At the T+65bp pricing level, CONCESSION IS 5BP. 

FINAL BOOK:

$600m 5yr - $1.270bn (2.12x) 

[EQUITABLE AMERICA GF]

Equitable America Global Funding (EQH) exp A1/A+ (s/n) US$500m 144A/Reg S 3y FXD sr secured FA-Backed due 12/15/28. FA Provider: Equitable Financial Life Insurance Company of America. Denoms: 2,000 x 1,000. Sale into Canada: Yes - Exemption. UOP: To purchase one or more Funding Agreements from Equitable Financial Life Insurance Company of America. Pricing 12/8. Settle 12/15 (T+5). 144A Cusip: 29446Q2F9. 144A ISIN: US29446Q2F91. 

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

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

Guidance came in at T+70#.

Ultimately, a $500m deal priced as follows:

$500m 4.30% 12/15/28 99.958 4.315% T+70.

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

-EQH 4.650% due 06/09/28 T+66bp (G67; $100.87) - $750M pxd 06/02/25

-EQH 4.950% due 06/09/30 T+81bp (G84; $101.72) - $850M pxd 06/02/25

-EQH 4.700% due 09/15/32 T+98bp (G100; $98.97) - $500M pxd 09/08/25 +93

** Sep 32s G100; call new 7yr f/v T+100bp; minus 30bp for 3s/7s curve, f/v is T+70bp. (flat)

Although the 28s are less liquid, some would still use Jun 28s G67 plus 5bp for a 6-mos curve extension, calling f/v T+72bp. (neg 2)

Mid-point f/v is T+71bp. At the T+70bp pricing level, CONCESSION IS NEG 1BP.

Comps away:

Athene Global Funding (A1/A+/A+)
-ATH 4.830% due 05/09/28 T+100bp (G101; $100.55) - $800M pxd May 2025

-ATH 5.033% due 07/17/30 T+118bp (G120; $100.58) - $850M pxd 07/14/25 +105

-ATH 5.322% due 11/13/31 T+135bp (G126; $101.31) - $650M pxd Nov 2024

Corebridge Global Funding (A2/A+/N/A)
-CRBG 4.250% due 08/21/28 T+66bp (G66; $100.02) - $500M pxd 08/18/25 +58

-CRBG 4.450% due 10/02/30 T+92bp (G93; $99.22) - $500M pxd 09/29/25 +73

-CRBG 4.900% due 08/21/32 T+97bp (G100; $100.12) - $500M pxd 08/18/25 +88

Lincoln Financial Global Funding (A2/A+/A+)
-LNC 4.625% due 05/28/28 T+70bp (G71; $100.79) - $500M pxd May 2025

-LNC 4.625% due 08/18/30 T+87bp (G89; $100.16) - $500M pxd 08/11/25 +82

Mutual Of Omaha Global Funding (A1/A+/N/A)
-MUTOMA 4.514% due 06/09/28 T+56bp (G57; $100.87) - $400M pxd Jun 2025

-MUTOMA 5.000% due 04/01/30 T+76bp (G80; $102.05) - $500M pxd Mar 2025

NLG Global Funding (A1/A+/N/A)
-LIFEVT 4.350% due 09/15/30 T+93bp (G94; $98.77) - $500M pxd 09/08/25 +82

Principal Life Global Funding II (A1/A+/N/A)
-PFG 4.250% due 08/18/28 T+61bp (G62; $100.12) - $400M pxd 08/11/25 +55

-PFG 4.950% due 11/27/29 T+67bp (G73; $102.06) - $500M pxd Nov 2024

Protective Life Global (A1/AA-/AA-)
-PROTLI 4.161% due 01/15/29 T+64bp (G63; $99.82) - $500M pxd 12/03/25 +65

-PROTLI 4.803% due 06/05/30 T+69bp (G72; $101.62) - $500M pxd May 2025

-PROTLI 5.432% due 01/14/32 T+73bp (G81; $104.2) - $500M pxd Jan 2025

RGA Global Funding (A1/AA-/N/A)
-RGA 4.350% due 08/25/28 T+66bp (G67; $100.25) - $800M pxd 08/18/25 +65

-RGA 4.600% due 11/25/30 T+94bp (G94; $99.78) - $500M pxd 11/18/25 +93

-RGA 5.000% due 08/25/32 T+104bp (G107; $100.31) - $700M pxd 08/18/25 +95

Sammons Financial Global (N/A/A+/A+)
-SAMMON 5.050% due 01/10/28 T+79bp (G82; $101.32) - $500M pxd Jan 2025

-SAMMON 4.950% due 06/12/30 T+94bp (G97; $101.19) - $400M pxd Jun 2025

FINAL BOOKS:

$500m 3yr FABN - $1.70bn (3.40x) - PEAK 2.20BN 

[AFFILIATED MANAGERS]

Affiliated Managers Group Inc (AMG) exp A3/BBB+ (s/s) US$425m (upsized from $350m) SEC registered long 10y FXD sr notes due 2/15/36. MWC then 3mos par call (11/15/35). 101 CoC.Denoms: 2,000 x 1,000. Sale into Canada: Yes - Exemption. UOP: redeem in full and otherwise settle its obligations with respect to the 5.15% Convertible Trust Preferred Securities due 2037 of AMG Capital Trust II in cash, with any remaining net proceeds expected to be used for general corporate purposes. Marketing: https://dealroadshow.com Passcode: AMG2025. Pricing 12/8. Settle 12/11 (T+3). Cusip: 008252AS7. ISIN: US008252AS71. 

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

Announced with $350m, we heard initial thoughts as T+160 area.

Went straight to launch at T+135.

Ultimately, the $425m deal priced as follows: 

$425m 5.50% 2/15/36 99.828 5.520% T+135. MW+25.

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

-AMG 5.500% due 08/20/34 T+109bp (G121; $101.52) - $400M pxd Aug 2024

** Outstanding Aug 34s G121; plus 4bp for curve = T+125bp f/v. At the T+135bp pricing level, CONCESSION IS 10BP.

Comps away:

Blackstone Reg Finance (N/A/A+/A+)
-BX 4.950% due 02/15/36 T+95bp (G93; $98.65) - $600M pxd 10/28/25 +98

Apollo Global Management (A2/A/A)
-APO 5.150% due 08/12/35 T+108bp (G110; $99.19) - $850M pxd 08/07/25 +95

KKR & Co Inc (N/A/A/A)
-KKR 5.100% due 08/07/35 T+102bp (G104; $99.25) - $900M pxd 08/04/25 +93

Ameriprise Financial Inc (A3/A-/A-)
-AMP 5.200% due 04/15/35 T+85bp (G86; $101.62) - $750M pxd Feb 2025

Brookfield Asset Management (N/A/A-/A)
-BAMCN 5.298% due 01/15/36 T+118bp (G117; $99.5) - $400M pxd 11/13/25 +120

Brookfield Finance Inc (A3/A-/A-)
-BNCN 5.330% due 01/15/36 T+118bp (G117; $99.76) - $650M pxd 08/13/25 +110

Carlyle Group Inc (N/A/A-/A-)
-CG 5.050% due 09/19/35 T+114bp (G115; $97.98) - $800M pxd 09/16/25 +105

TPG Operating Group II (A3/BBB+/A-)
-TPG 5.375% due 01/15/36 T+129bp (G128; $99.27) - $500M pxd 08/11/25 +120

FINAL BOOKS:

$425m L10yr - $1.700bn (4.00x) - PEAK $2.00BN

[CNO GF]

CNO Global Funding (CNO) exp A3/A-/A (s/s/s) US$400m 144A/Reg S 5y FXD sr secured FA-Backed due 12/11/30. FA Provider: Bankers Life and Casualty Company. Denoms: 2,000 x 1,000. Sale into Canada: Yes - Exemption. Interest Payment Dates: Semi-annual; payable on June 11 and December 11 of each year, beginning on June 11, 2026 through and including the Maturity Date, subject to adjustment in accordance with the Following Business Day Convention (New York business days only). UOP: Purchase the Relevant Funding Agreement from Bankers Life and Casualty Company. Pricing 12/8. Settle 12/11 (T+3). 144A Cusip:18977W2J8. 144A ISIN: US18977W2J84. 

VIA  Barc (B&D)/GS/RBC joint active books.

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

Guidance came in at T+98#.

Ultimately, the $400m deal priced as follows:

$400m 4.70% 12/11/30 99.868 4.730% T+98.

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

- CNO 4.357% due 09/08/28 T+76bp (G77; $99.95) - $350m pxd 9/2/25 +75
- CNO 4.950% due 09/09/29 T+79bp (G86; $101.50) - $400m pxd SEP 2024

* Outstanding ‘28s G77; Call 3yr f/v T+80bp; plus 18-20bp 3s/5s curve puts f/v at T+98bp-T+100 (T+99 mid).  At the T+98bp pricing level, CONCESSION IS NEG 1BP.

Comps away:

NLG Global Funding (A1/A+)
- LIFEVT 4.350% due 09/15/30 T+91bp (G92; $98.8) - $500m pxd 9/8/25 +82

RGA Global Funding (A1/AA-)
- RGA 4.600% due 11/25/30 T+92bp (G92; $99.8) - $500m pxd 11/18/25 +93

Corebridge Global Funding (A2/A+)
- CRBG 4.250% due 08/21/28 T+66bp (G67; $99.89) - $500m pxd 8/18/25 +58
- CRBG 4.450% due 10/02/30 T+88bp (G89; $99.3) - $500m pxd 9/29/25 +73

Lincoln Financial Global Funding (A2/A+/A+)
- LNC 4.625% DUE 05/28/28 T+70bp (G71; $100.68)  - $500m pxd 5/20/25 +70
- LNC 4.625% due 08/18/30 T+87bp (G89; $99.94) - $500m pxd 8/11/25 +82

Voya Global Funding (A2/A+)
- Voya 4.600% due 11/24/30 T+80bp (G80; $100.30) - $400m pxd 11/17/25 +90

FINAL BOOK: 

$400m 5yr - $1.100bn (2.75x) - PEAK $1.40BN 

[TXNM ENERGY]

TXNM Energy Inc (TXNM) exp issue rating Ba1/BB+ (s/s) US$350m 144A/Reg S no reg rights 30.5nc5.25 fixed rate reset $1,000 par Junior Subordinated Notes due 7/31/56 (with Coupon Floor). First Reset Date: 7/31/31. Interest Reset Date: First Reset Date and July 31 of every fifth year after 2031. Interest Rate: The notes will bear interest (i) from and including the date of the original issuance to, but excluding July 31, 2031 (the “First Reset Date”) at an annual rate of [●]% per annum and (ii) from and including the First Reset Date during each Interest Reset Period at an annual rate equal to the Five-Year Treasury Rate as of the most recent Reset Interest Determination Date plus a spread of [●]%; provided, that the interest rate during any Interest Reset Period will not reset below [●]% (which equals the initial interest rate on the notes). Optional Redemption: In whole or in part, on one or more occasions, (i) on any day in the period commencing on the date falling 90 days prior to the First Reset Date and ending on and including the First Reset Date and (ii) after the First Reset Date, on any interest payment date, in each case at 100% of the principal amount of the notes being redeemed, plus accrued and unpaid interest on the notes to be redeemed to, but excluding, the redemption date; In whole, but not in part, at 100% of their principal amount, plus any accrued and unpaid interest to, but excluding, the redemption date thereon, if certain changes in tax laws, treaties or interpretations occur; or In whole, but not in part, at 102% of their principal amount, plus any accrued and unpaid interest to, but excluding, the redemption date thereon, if a rating agency makes certain changes in the equity credit criteria for securities such as the notes. Optional Int Deferral: (up to) 20 consecutive int pmt pds. Denominations: 2,000 x 1,000. Sale into Canada: Yes - Exemption. Sale into HK or Mainland China: No – All Solicitations Prohibited. UOP: To repay short-term indebtedness and for general corporate purposes, including contributions to the Company’s subsidiaries (which will be used by TXNM Energy’s subsidiaries to repay short-term indebtedness). Pricing 12/8. Settle 12/10 (T+2). 144A Cusip: 69349HAJ6. 144A ISIN: US69349HAJ68. 

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

Announced as $350m no grow, we heard initial thoughts as 7.25-7.375%.

Went straight to launch at 7.00%

Ulitmaley, a $350m deal priced as follows:

$350m 7.00% 7/31/56 7.00%. Back-end reset: +325.4 vs 3.50% 11/30/30.

As for r/v, CONCESSION N/A.

COMPS AWAY (with floors):

Entergy Corp (Baa3/BBB-)
-ETR 5.875% due 06/15/56 nc 03/15/31 $100.000 (G211; 5.873% YTC) - $600m pxd NOV 2025 b/e +217.9

CenterPoint Energy Inc (Baa3/BBB-/BB+)
-CNP 5.950% due 04/01/56 nc 01/01/31 $100.875 (G201; 5.748% YTC) - $700m pxd OCT 2025 b/e +222.3

Spire Inc (Baa3/BBB-)
-SR 6.250% due 06/01/56 nc 03/01/31 $99.250 (G267; 6.422% YTC) - $450m pxd NOV 2025 b/e +250.9

Eushi Finance Inc (Ba1/BB+/BB+)
-EMACN 6.250% due 04/01/56 nc 01/01/31 (G251; 6.250% YTC) - $750m pxd OCT 2025 b/e +250.9

PG&E Corp (Ba3/B/BB)
-PCG 5.375% due 03/15/55 nc 12/15/29 (G259; 6.268% YTC) - $1.5bn pxd SEPT 2024 b/e +388.3

FINAL BOOK:

$350m 30.5nc5.25 Jr Sub - $1.050bn (3.00x) - PEAK $1.350bn

[SSA PRICED]

The World Bank (International Bank for Reconstruction & Development – IBRD), rated Aaa (stable) by Moody’s and AAA (stable) by S&P, US$200m SEC exempt Long 6y Clean Cooking Outcome Bond due 3/31/32. Standard Chartered Bank as Sole Lead Manager and Bookrunner. Coupon payments include a fixed rate component, and a variable rate component linked to Internationally Transferred Mitigation Outcomes (ITMOs) issued from two clean cookstove projects in Ghana. First Pay: 12/12/26. Day Count 30/360. Denoms: 100,000 x 1,000. List: Lux. This will be IBRD’s first Outcome Bond with a return linked to ITMOs generated under the Paris Agreement Article 6.2 which establishes a framework for countries to cooperate towards their Nationally Determined Contributions through market-based mechanisms. The bond’s principal will support financing of World Bank’s sustainable development projects, programs, and activities in IBRD member countries. See IBRD’s Sustainable Development Bond Framework for examples of such eligible projects, programs, and activities. Priced 12/5. Settle 12/12. ISIN: XS3239206488.

PRICED: $200m 1.093% 3/31/32 100.00 1.093%.