Commentary & Deal Flow

Primary activity picked up today, with 12 issuers pricing $13.625bn, doubling yesterday’s deal count while also exceeding the prior session’s $11.4bn in volume. This marks the first double-digit issuance day since January 22 and the highest deal count since January 7 (14 deals).

Utilities represented a meaningful share of supply, totaling $5.225bn across four issuers. This accounts for 25% of year-to-date Utility issuance and stands as both the largest single-day Utility volume and the highest Utility share of IG issuance YTD. The last larger Utility day was September 23, 2025 ($7.225bn), which ranks as the second-largest Utility issuance day since 2020.

BBB-rated supply continues to dominate issuance this week, representing $19.175bn of the $25.025bn priced week-to-date (77%).

As flagged in this morning’s open, we had been awaiting the arrival of additional February frequent issuers. Five such names were priced today, bringing the month-to-date total of February frequent flyers to 12. Even after today’s activity, that represents just 12 of a potential 42 issuers.

CAT's 3y at T+30 ties for the 3rd lowest FIG spread through 2022:

And its coupon at 3.750% is the 2nd behind GOOGL from earlier this month (and the lowest FIG coupon) through 2023:

EXC's 10y at T+92 ranks as the 3rd lowest BBB utility spread through 2009:

DTE's 10y coupon at 4.85% is the 2nd lowest 10y utility coupon through 2025 with EXC's 4.95% right behind:

ABNANV's 10y at T+75bp grabs the 2nd lowest bank spread through 2022:

MAR's 7y coupon at 4.500% ties for the lowest BBB 7y coupon through 2023:

Here's today's rundown:

[PACIFIC GAS AND ELECTRIC]

Pacific Gas and Electric Co (PCG) exp Baa1/BBB/BBB+ (p/p/s) US$2.2bn SEC registered 3-part first mortgage bonds (tap of PCG 6.10% 1/15/29s - $850m o/s, new 10y FXD due 5/1/36 and new 30y FXD due 5/1/56). MWC (T+40 on tap until 12/15/28), then 1mo par call on tap (12/15/28), 3mos on 10y (2/1/36) and 6mos on 30y (12/1/55). Denoms: 2,000 x 1,000. Sale into Canada: Yes - Exemption. Restricted Sales: NO E-MAIL OR WRITTEN MATERIALS MAY BE SENT, NOR ANY SALES CALLS OR OTHER ORAL COMMUNICATIONS BE INITIATED, TO INVESTORS LOCATED IN HONG KONG OR MAINLAND CHINA. UOP: For the repayment at maturity of the $600,000,000 aggregate principal amount of 2.95% Senior Notes due March 1, 2026, repayment of short-term borrowings, and general corporate purposes. Pricing 2/18. Settle 2/20 (T+2).

OTHER

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

Announced as a benchmark, we heard initial price thoughts as follows:

2029 tap IPT - T+95 area; GDNC T+73#; PXD $400m tap of 6.10% 1/15/29 at 104.928 4.227% T+73. MW+40. Total outstanding now $1.25bn.
10yr IPT - T+145 area; GDNC T+115#; PXD $1bn 5.20% 5/1/36 99.693 5.237% T+115. MW+20.
30yr IPT - T+160 area; GDNC T+132#; PXD $800m 6.00% 5/1/56 99.451 6.038% T+132. MW+20. 

As for r/v, outstanding PCG was quoted as follows:
-PCG 6.100% due 01/15/29 T+73bp (G74; $104.000) - $850M pxd Jun 2023
-PCG 5.700% due 03/01/35 T+109bp (G118; $105.000) - $1B pxd Feb 2025
-PCG 6.000% due 08/15/35 T+112bp (G117; $105.000) - $850M pxd Jun 2025
-PCG 6.100% due 10/15/55 T+130bp ($100.000) - $750M pxd Sep 2025

** 2029 tap - outstanding Jan 29s T+73bp. At the T+73bp pricing level, TAP CONCESSION IS FLAT. 

** 10y - outstanding Aug 35s G117; plus 1bp for curve to get to T+118bp f/v. At the T+115bp pricing level, 10Y CONCESSION IS NEG 3BP.

** 30y - Outstanding Oct 55s T+130bp; call new 30y f/v T+130bp. At the T+132bp pricing level, 30Y CONCESSION IS 2BP.

Comps away:

PacifiCorp (A3/BBB+)
-BRKHEC 4.250% due 03/15/29 T+65bp (G65; $100.000) - $400M pxd 02/04/26 +65

Southern California Gas Co (Aa3/A/AA-)
-SRE 5.450% due 06/15/35 T+75bp (G81; $104.000) - $600M pxd May 2025
-SRE 6.000% due 06/15/55 T+98bp ($104.000) - $500M pxd May 2025

San Diego Gas & Electric (A1/A/A)
-SRE 5.400% due 04/15/35 T+77bp (G85; $103.000) - $850M pxd Mar 2025
-SRE 5.550% due 04/15/54 T+97bp ($99.000) - $600M pxd Mar 2024

Southern California Edison (A2/BBB+/A-)
-EIX 5.450% due 03/01/35 T+105bp (G114; $102.000) - $850M pxd Jan 2025
-EIX 6.200% due 09/15/55 T+128bp ($102.000) - $650M pxd Mar 2025

FINAL BOOKS:

$400m 2029 FMB Tap - $1.900bn (4.75x) - PEAK $2.200bn

$1.000bn 10yr FMB - $5.700bn (5.70x) - PEAK $7.100bn

$800m 30yr FMB - $3.900bn (4.88x) - PEAK $5.100bn

[DTE ELECTRIC CO]

DTE Electric Co (DTE) exp Aa3/A/A+ (s/s/s) US$1.6bn SEC registered 2-part first mortgage bonds (10y FXD due 3/1/36 and 30y FXD due 3/1/56). MWC then 3mos par call on 10y (12/1/35) and 6mos on 30y (8/1/55). Special Redemption: Tax Credit Event: 101% (notice may be issued no later than December 31, 2026, for a redemption no less than 30 days nor more than 60 days after notice). Denoms: 2,000 x 1,000. Sale into Canada: Yes - Exemption. Selling Restriction: No sales into Hong Kong or Mainland China The mortgage bonds should not be purchased, held or otherwise acquired by a “specified foreign entity” as defined in Section 7701(a)(51)(B) of the Internal Revenue Code of 1986, as amended (“specified foreign entity”). By purchasing the mortgage bonds, any investor in the mortgage bonds will be deemed to represent and warrant to us that it is not, and will not be, for its taxable year that includes the date of the original issuance of the mortgage bonds, an SFE. UOP: Repayment of short-term borrowings, capital expenditures, and for other general corporate purposes. Pricing 2/18. Settle 2/27 (T+7). Cusip: 10y: 23338VBB1, 30y: 23338VBA3. ISIN: 10y: US23338VBB18, 30y: US23338VBA35. 

VIA BNP/Barc (B&D)/FITB/MUFG/PNC/USB joint active books.

Announced with benchmark size, we heard initial thoughts as 10y T+105 area, 30y T+115 area.

Guidance came in at 10y T+78#, 30y T+85#.

Ultimately, a $1.6bn deal priced as follows:

$800m 4.85% 3/1/36 99.866 4.867% T+78. MW+12.5.

$800m 5.55% 3/1/56 99.782 5.565% T+85. MW+15.

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

-DTE 1.900% due 04/01/28 T+33bp (G32; $96.21) - $575m pxd MAR 2021
-DTE 2.625% due 03/01/31 T+49bp (G48; $93.25) - $600m pxd APRL 2020
-DTE 5.250% due 05/15/35 T+71bp (G78; $103.47) - $700m pxd MAY 2025
-DTE 5.850% due 05/15/55 T+82bp ($104.85) - $700m pxd MAY 2025

*** 10yr: May ’35 G78, add 2bp for curve gets f/v to T+80bp. At the T+78bp pricing level, 10yr CONCESSION IS NEG 2BP.

*** 30yr: Mar ’55 T+82, call f/v at T+82bp. With the ‘55s trading on top of the 35s, also looking at 10y f/v at T+80, add 10bp for IPT curve points to f/v at T+90bp. Going midpoint call f/v at T+86bp. At the T+85bp pricing level, 30yr CONCESSION IS NEG 1BP..

COMPS AWAY:

Florida Power & Light Co (Aa2/A+/AA-)
-NEE 4.700% due 02/15/36 T+66bp (G66; $99.79) - $650m pxd DEC 2025
-NEE 5.600% due 02/15/66 T+89bp ($100.27) - $1.15bn pxd DEC 2025

MidAmerican Energy Co (Aa2/A)
-BRKHEC 5.350% due 01/15/34 T+52bp (G69; $104.90) - $350m pxd SEPT 2023
-BRKHEC 5.500% due 11/15/56 T+82bp ($99.83) - $400m pxd NOV 2025

Duke Energy Carolinas (Aa3/A)
-DUK 5.250% due 03/15/35 T+64bp (G72; $103.91) - $700m pxd JAN 2025
-DUK 5.400% due 01/15/54 T+80bp ($98.70) - $925m pxd MAY 2025

Northern States Power (Aa3/A/A+)
-XEL 5.050% due 05/15/35 T+64bp (G73; $102.45) - $600m pxd MAY 2025
-XEL 5.650% due 05/15/55 T+83bp ($101.84) - $500m pxd MAY 2025

PECO Energy (Aa3/A)
-EXC 4.875% due 09/15/35 T+66bp (G71; $101.13) - $525m pxd SEPT 2025
-EXC 5.650% due 09/15/55 T+83bp ($101.85) - $525m pxd SEPT 2025

FINAL BOOKS:

$800m 10yr FMB - $4.700bn (5.88x) - PEAK $5.400bn

$800m 30yr FMB - $4.600bn (5.75x) - PEAK $5.400bn

[AVOLON]

Avolon Holdings Funding Ltd (AVOL) exp Baa2/BBB-/BBB (s/p/s) US$1.5bn 144A/Reg S no reg rights 2-part sr notes (3y FXD due 4/15/29 and 7y FXD due 4/1/33). MWC then 1mo par call on 3y (3/15/29) and 2mos on 7y (2/1/33). 101 CoC. Guarantors: Avolon Holdings Limited, Park Aerospace Holdings Limited, Avolon Aerospace Leasing Limited, CIT Aerospace LLC, CIT Group Finance (Ireland) Unlimited Company, CIT Aviation Finance III Ltd. and CIT Aerospace International Unlimited Company. Denoms: 2,000 x 1,000. Sale into Canada: Yes - Exemption. UOP: The net proceeds from this offering are intended to be used for general corporate purposes, which may include funding the Share Repurchase and/or the future repayment of outstanding indebtedness. Pricing 2/18. Settle 2/23 (T+3). 144A CUSIP: 3y: 05401ABE0, 7y:: 05401ABF7. 144A ISIN: 3y: US05401ABE01, 7y: US05401ABF75.

VIA BMO/HSBC/Lloyds/Miz/WFS (B&D) joint active books.

Announced as $1.5bn, we heard initial price thoughts as 3y T+115 area, 7y T+145 area.

Guidance came in at 3y T+83#, 7y T+115#.

Ultimately, a $1.5bn deal priced as follows:

$750m 4.20% 4/15/29 99.645 4.319% T+83. MW+15.

$750m 4.85% 4/1/33 99.134 4.995% T+115. MW+20. 

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

-AVOL 5.750% due 03/01/29 T+83bp (G83; $103.9 ) - $1.15B pxd Jan 2024
-AVOL 5.750% due 11/01/29 T+98bp (G93; $104.2) - $1B pxd May 2024
-AVOL 4.900% due 10/10/30 T+98bp (G101; $101.1) - $650M pxd Jul 2025
-AVOL 4.700% due 01/30/31 T+104bp (G104; $100.0 ) - $850M pxd Dec 2025
-AVOL 4.950% due 10/15/32 T+131bp (G114; $100.0) - $1.250B pxd Sep 2025

** 3y - Interpolate between outstanding Mar 29s G83 and Nov 29s G93, call new 3y f/v T+85bp. At the T+83bp pricing level, 3Y CONCESSION IS NEG 2BP.

** 7y - Outstanding Oct 32s G114; plus 2bp for curve to get to T+116bp f/v. At the T+115bp pricing level, 7Y CONCESSION IS NEG 1BP.

Come away:

AerCap Ireland Capital (Baa1/BBB+/BBB+)
-AER 4.125% due 02/28/29 T+68bp (G68; $99.8) - $900M pxd 01/06/26 +70
-AER 4.750% due 01/15/33 T+95bp (G95; $99.8) - $850M pxd 01/06/26 +92

Aviation Capital Group (Baa2/BBB-)
-ACGCAP 4.250% due 04/30/29 T+83bp (G81; $99.8) - $400M pxd 01/14/26 +83
-ACGCAP 4.875% due 01/28/33 T+115bp (G115; $99.3) - $600M pxd 01/14/26 +115

FINAL BOOKS:

$750m 3yr - $2.300bn (3.07x) - PEAK $3.500bn

$750m 7yr - $2.000bn (2.67x) - PEAK $3.100bn

[MARRIOT]

Marriott International Inc (MAR) exp Baa2/BBB (s/s) SEC registered US$1.45bn 2-pt sr notes (7y due 05/01/33 and 12y due 05/01/38). MWC then 2 mos par call on 7y (03/01/33) and 3 mos on 12y (02/01/38). 101 CoC. UOP: General corporate purposes, which may include working capital, capital expenditures, acquisitions, stock repurchases or repayment of outstanding indebtedness. Denoms: 2,000 x 1,000. Sales into Canada: Yes, via exemption. Pricing 02/18. Settle 02/20 (T+2). 7s/12s CUSIP: 571903BY8/571903BZ5; ISIN: US571903BY80/US571903BZ55.

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

Announced as a benchmark, we heard initial price thoughts as 7y T+110 area and 12y T+135 area.

Guidance came in at 7y T+80#, 12y T+110#.

Ultimately, a $1.45bn deal priced as follows

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

-MAR 4.875% due 05/15/29 T+60bp (G59; $102.310) - $500M pxd Feb 2024
-MAR 4.500% due 10/15/31 T+70bp (G64; $100.780) - $500M pxd Aug 2025
-MAR 5.100% due 04/15/32 T+78bp (G68; $103.550) - $500M pxd Feb 2025
-MAR 5.250% due 10/15/35 T+88bp (G93; $102.220) - $600M pxd Aug 2025
-MAR 5.500% due 04/15/37 T+106bp ($103.050) - $1.500B pxd Feb 2025

** 12y - Apr 37s T+106bp; plus 4bp for curve to get to f/v of T+110bp.

Or curve up from the 10y: outstanding Oct 35s G93; plus curve, call new 10y f/v T+95bp;  plus 15bp for 10s/12s curve to get to new 12y f/v of T+110bp. 

At the T+110bp pricing level, 12Y CONCESSION IS FLAT.

** 7yr - 30yr f/v T+110bp; minus 25bp 7s/12s curve to get to T+85bp f/v. At the T+80bp pricing level, 7Y CONCESSION IS NEG 5BP.

Comps away:

Host Hotels & Resorts LP (Baa2/BBB-/BBB)
-HST 3.500% due 09/15/30 T+95bp (G98; $95.550) - $750M pxd Aug 2020
-HST 5.700% due 06/15/32 T+115bp (G103; $104.800) - $500M pxd May 2025
-HST 5.500% due 04/15/35 T+115bp (G123; $101.960) - $700M pxd Aug 2024

Hyatt Hotels Corp (Baa3/BBB-/BBB-)
-H 5.375% due 12/15/31 T+104bp (G97; $103.420) - $450M pxd Nov 2024
-H 5.750% due 03/30/32 T+111bp (G101; $105.130) - $500M pxd Mar 2025
-H 5.400% due 12/15/35 T+119bp (G122; $101.030) - $400M pxd Nov 2025

Choice Hotels International (Baa3/BBB-)
-CHH 3.700% due 12/01/29 T+98bp (G92; $97.360) - $400M pxd Nov 2019
-CHH 3.700% due 01/15/31 T+94bp (G94; $96.170) - $450M pxd Jul 2020
-CHH 5.850% due 08/01/34 T+128bp (G142; $103.280) - $600M pxd Jun 2024

FINAL BOOKS:

$600m 7yr - $3.650bn (6.08x) - PEAK $4.350bn

$850m 12yr - $2.950bn (3.47x) - PEAK $3.400bn

[CATERPILLAR]

Caterpillar Financial Services Corp (CAT) exp A2/A/A+ (p/s/s) US$1.3bn SEC registered 3y FXD and/or FLOAT sr notes due 2/23/29. MWC on FXD tranche. Denoms: 1,000 x 1,000. Sale into Canada: Yes - Exemption. UOP: gcp. Pricing 2/18. Settle 2/24 (T+4). CUSIP: FRN: 14913UBK5, FXD: 14913UBJ8. 

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

Announced with benchmark size, we heard initial thoughts as T+55 area and SOFR equiv.

Guidance came in at 3y FRN SOFR+49#, 3y FXD T+30#.

Ultimately, a $1.3bn deal priced as follows:

$350m 2/23/29 FRN at SOFR+49, at 100.

$950m 3.75% 2/23/29 99.868 3.797% T+30. MW+5.

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

-CAT 3.700% due 01/10/28 T+19bp (G19; $100.10) - $500m pxd 01/05/26 +27
-CAT 4.850% due 02/27/29 T+30bp (G30; $103.00) - $600m pxd FEB 2024
-CAT 4.150% due 01/08/31 T+40bp (G40; $100.50) - $500m pxd 01/05/26 +45

*** Feb ’29 G30, call f/v at T+30bp. At the T+30bp pricing level, CONCESSION IS FLAT.

COMPS AWAY:

Paccar Financial (A1/A+)
-PCAR 4.100% due 11/07/28 T+25bp (G23; $100.80) - $400m pxd NOV 2025
-PCAR 3.900% due 02/05/29 T+24bp (G24; $100.50) - $400m pxd 01/29/26 +30

John Deere Capital Corp (A1/A)
-DE 4.650% due 01/07/28 T+23bp (G23; $101.80) - $500m pxd JAN 2025
-DE 4.500% due 01/16/29 T+25bp (G25; $102.10) - $1bn pxd JAN 2024
-DE 4.375% due 10/15/30 T+35bp (G37; $101.70) - $600m pxd JUL 2025

Toyota (A1/A+)
-TOYOTA 3.750% due 01/12/28 T+25bp (G25; $100.10) - $750m pxd 01/07/26 +32
-TOYOTA 4.050% due 09/05/28 T+34bp (G32; $100.60) - $800m pxd SEPT 2025
-TOYOTA 4.200% due 01/10/31 T+51bp (G51; $100.30) - $750m pxd 02/07/26 +52

FINAL BOOKS:

$350m 3yr FRN - $800m (2.29x) - PEAK $1.070bn

$950m 3yr FXD - $1.650bn (1.74x) - PEAK $2.650bn

[ABN AMRO]

ABN Amro Bank NV (ABNANV), exp issue ratings Aa3/A/A+ (issuer ratings Aa3/A/A (s/p/s)), US$1.25bn 144A/Reg S 2-part Senior Preferred notes (5y FXD due 2/26/31 and 10y FXD due 2/26/36). UOP: gcp. Pricing 2/18. Settle 2/26 (T+6). 

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

Announced with benchmark size, we heard initial thoughts as 5y T+80 area, 10y T+95-100.

Guidance came in at 5y T+55#, 10y T+75#.

Ultimately, a $1.25bn deal priced as follows:

$650m 4.197% 2/26/31 100.00 4.197% T+55.

$600m 4.831% 2/26/36 100.00 4.831% T+75.

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

-ABNANV 4.197% due 07/07/28 T+45bp (G44; $100.78) - $750m pxd JUN 2025

More recent 5y from Rabo was also seen as a relevant comp.

Cooperatieve Rabobank (Aa2/A+/AA-)
-RABOBK 4.160% due 01/14/31 T+45bp (G45; $100.35) - $500m pxd 01/07/26 +47

*** 5yr: Vs ABNANV Jul ’28 G44, add 4bp for curve call new issue 3y at 48bp. Add 10bp for 3s/5s curve = 58bp. 

Vs RABOBK Jan ‘31 G45, ABN should price 10bp wide of Rabo = 55bp. 

Going midpoint between vs ABN and vs Rabo call f/v at T+57bp. At the T+55bp pricing level, 5yr CONCESSION IS NEG 2BP.

*** 10yr: 5yr f/v at T+57, add 17.5bp for IPT curve gets f/v to T+75bp. At the T+75bp pricing level, 10yr CONCESSION IS FLAT.

Nordea Bank Abp (Aa2/AA-/AA)
-NDAFH 4.250% due 08/28/30 T+47bp (G50; $100.78) - $600m pxd AUG 2025

National Australia Bank (Aa2/AA-)
-NAB 4.148% due 01/13/31 T+38bp (G39; $100.78) - $500m pxd 01/06/26 +45

Credit Agricole SA (A1/A+/AA-)
-ACAFP 5.365% due 03/11/34 T+59bp (G74; $104.98) - 750m pxd MAR 2024

Banque Federative du Credit Mutuel SA (A1/A+/AA-)
-BFCM 4.541% due 01/15/31 T+84bp (G84; $100.48) - $1.5bn pxd 01/07/26 +85
-BFCM 5.106% due 01/15/36 T+96bp (G97; $100.66) - $750m pxd 01/07/26 +97

FINAL BOOK:

650m 5yr SP - $1.650bn (2.54x) - PEAK $2.625bn

$600m 10yr SP - $1.900bn (3.17x) - PEAK $2.725bn

[GOLDMAN SACHS PRIVATE CREDIT]

Goldman Sachs Private Credit Corp (GSCRED) exp Baa3/BBB-/BBB- (s/s/s) US$1.1bn 144A/Reg S with reg rights 2-part sr notes (new 2y FXD due 2/23/28 and tap of GSCRED 5.875% 1/31/31s - $500m o/s). MWC (T+40 on tap) then 1mo par call on 5y tap (12/31/30). 100 CoC.Denoms: 2,000 x 1,000. Sale into Canada: Yes - Exemption. UOP: To repay a portion of the outstanding indebtedness under the Company's Credit Facilities and for general corporate purposes. Marketing: www.netroadshow.com Passcode: GSCRED2026. Pricing 2/18. Settle 2/23 (T+3). 144A CUSIP: 2y: 38152BAJ0, 5y tap: 38152BAG6. 144A ISIN: 2y: US38152BAJ0, 5y tap: US38152BAG68. 

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

Announced with benchmark size, we heard initial thoughts as 2y T+215 area, 5y tap T+275 area.

Guidance came in at 2y T+185#, 5y tap T+260#.

Ultimately, a $1.1bn deal priced as follows:

$700m 5.05% 2/23/28 99.502 5.316% T+185. MW+30.

$400m tap of 5.875% 1/31/31 at 98.386 6.252% T+260. MW+40. New outstanding now $900m.

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

-GSCRED 5.875% due 05/06/28 T+164bp (G163; $101.60) - $400m pxd APRL 2025
-GSCRED 5.375% due 01/31/29 T+194bp (G194; $99.90) - $660m pxd OCT 2025
-GSCRED 6.250% due 05/06/30 T+227bp (G234; $101.30) - $600m pxd APRL 2025
-GSCRED 5.875% due 01/31/31 T+251bp (G251; $98.90) - $500m pxd NOV 2025

*** 2031 tap: Spotted at T+251bp call f/v at T+251bp. At the T+260bp pricing level, 2031 tap CONCESSION IS 9BP.

*** Jan ’29 G194, call new issue 3y f/v at 195bp. Take away 15bp for 3s/2s curve gets f/v to T+180bp. At the T+185bp pricing level, 3yr CONCESSION IS 5BP.

Goldman Sachs BDC (Baa3/NR/BBB-)
-GSBD 5.100% due 01/28/29 T+192bp (G192; $99.20) - $400m pxd 01/21/26 +170
-GSBD 5.650% due 09/09/30 T+231bp (G234; $98.90) - $400m pxd SEPT 2025

Blackstone Private Credit Fund (Baa2/BBB-)
-BCRED 7.300% due 11/27/28 T+176bp (G174; $105.20) - $646m pxd OCT 2024
-BCRED 5.600% due 1122//29 T+195bp (G190; $100.60) - $399m pxd APRL 2025
-BCRED 5.050% due 09/10/30 T+204bp (G207; $97.60) - $500m pxd SEPT 2025
-BCRED 5.350% due 03/12/31 T+218bp (G217; $98.00) - $700m pxd 01/05/26 +190

FINAL BOOKS:

$700m 2yr - $2.600bn (3.71x) - PEAK $2.800bn

$400m 2031 Tap - $1.200bn (3.00x) - PEAK $1.200bn

[EXELON]

Exelon Corp (EXC) exp Baa2/BBB+ (s/s) US$775m SEC registered 10y FXD sr notes due 3/15/36. MWC then 3mos par call (12/15/35). Denoms: 2,000 x 1,000. Sale into Canada: Yes - Exemption. Selling Restrictions: No Sales to Hong Kong or China. The notes may not be purchased, held or otherwise acquired (directly or indirectly) by a "specified foreign entity" as defined in Section 7701(a)(51)(B) of the Internal Revenue Code of 1986 ("specified foreign entity"). Each purchaser of a note, by accepting the note, will be deemed to have represented, warranted and agreed that it is not a "specified foreign entity". UOP: To retire the $750,000,000 3.400% Notes due 2026 at maturity and for general corporate purposes. Pricing 2/18. Settle 2/20 (T+2). CUSIP: 30161NBV2. ISIN: US30161NBV29.

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

Announced as a benchmark (expect $700+ w/modest growth and max of $775mm), we heard initial price thoughts as T+115 area.

Went straight to launch at $775m 10y at T+92.

Ultimately, a $775m deal priced as follows:

$775m 4.95% 3/15/36 99.611 4.999% T+92. MW+15.

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

-EXC 5.625% due 06/15/35 T+83bp (G88; $105.000) - $500M pxd May 2025
-EXC 5.875% due 03/15/55 T+106bp ($101.000) - $500M pxd Feb 2025

** Outstanding Jun 35s G88; plus curve, call new 10y f/v T+90bp. At the T+92bp pricing level,  CONCESSION IS 2BP.

Comps away:

NextEra Energy Capital (Baa1/BBB+/A-)
-NEE 5.450% due 03/15/35 T+81bp (G90; $104.000) - $1B pxd Jan 2025

Duke Energy Corp (Baa2/BBB)
-DUK 4.950% due 09/15/35 T+88bp (G91; $100.000) - $1B pxd Sep 2025

Ameren Corp (Baa1/BBB)
-AEE 5.375% due 03/15/35 T+81bp (G91; $103.000) - $750M pxd Feb 2025

NiSource Inc (Baa2/BBB+/BBB)
-NI 5.350% due 07/15/35 T+86bp (G92; $103.000) - $900M pxd Jun 2025

FINAL BOOKS:

$775m 10yr - $2.200bn (2.84x) - PEAK $2.750bn

[SYNCHRONY]

Synchrony Financial (SYF), exp BBB-/BBB (s/s) by S&P/Fitch, US$750m SEC registered 6nc5 fixed to floating sr notes due 2/25/32. MWC (with 6mo lockout). One time par call 1yr prior to maturity (2/25/31). Par call beginning 30 days prior to maturity (1/25/32). SOFR Convention: Compounded SOFR rate calculated by reference to the SOFR index. Denoms: 2,000 x 1,000. Sale into Canada: Yes - Exemption. UOP: gcp. Pricing 2/18. Settle 2/25 (T+5). Cusip: 87165BAZ6, ISIN: US87165BAZ67. 

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

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

Guidance came in at T+130#.

Ultimately, a $750m deal priced as follows:

$750m 4.947% 2/25/32 100.00 4.947% T+130. MW+20.

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

-SYF 5.935% due 08/02/30 nc29 T+118bp (G115; $104.00) - $750m pxd JUL 2024
-SYF 5.450% due 03/06/31 nc30 T+113bp (G120; $102.40) - $800m pxd MAR 2025
-SYF 6.000% due 07/29/36 nc35 T+157bp (G161; $102.60) - $500m pxd JUL 2025

*** Mar ’31 nc30 G120, assuming a 15bp 3s/5s curve add 8bp for curve gets f/v to T+128bp. At the T+130bp pricing level, CONCESSION IS 2BP.

FINAL BOOK:

$750m 6nc5 FTF - $3.700bn (4.93x) - PEAK $4.100bn

[INDIANA MICHIGAN POWER]

Indiana Michigan Power Co (AEP) exp A2/BBB+/A (s/s/s) SEC registered US$650M (WNG) 30y sr notes due 03/15/56. MWC then 6 mos par call (9/15/55). UoP: General corporate purposes and the acquisition of a natural gas‑fueled electric generating facility (the Oregon Clean Energy Center). Denominations: 2,000 x 1,000. Sale into Canada: Yes - Exemption. Pricing 02/18. Settle 02/20 (T+2).

VIA BMO/CIBC(B&D)/SMBC/TD joint active books.

Announced as $650m WNG, we heard initial price thoughts as T+120 area.

Went straight to launch at $650m 30y at T+92.

Ultimately, a $650m deal priced as follows:

Indiana Michigan Power was upgraded  by Moody’s yesterday (2/17/26) from A3 to A2, stable outlook. 

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

-AEP 5.625% due 04/01/53 T+83bp ($101.280) - $500M pxd Mar 2023

The direct outstanding has not traded in a while. So looking at the other long bonds in the AEP complex, the only one that trade is AEP Transmission

AEP Transmission Co (A2/BBB+/A)
-AEP 5.375% due 06/15/35 T+76bp (G83; $103.940) - $425M pxd May 2025
-AEP 5.400% due 03/15/53 T+87bp ($97.794) - $700M pxd Mar 2023

** AEP Transmission Mar 53s T+87bp; plus 5bp for delta gets you to T+92bp. At the T+92bp pricing level, CONCESSION IS FLAT.

Also pricing today is DTE Electric Co (DTE) exp Aa3/A/A+ (s/s/s) 30y at +85. With the two-notch rating differential between the two names, Indiana Michigan Power Co priced 7bp wider at T+92bp.

Other AEP outstandings:

Public Service Oklahoma (Baa1/BBB+/A-)
-AEP 5.450% due 01/15/36 T+96bp (G99; $103.157) - $800M pxd Jun 2025
-AEP 3.150% due 08/15/51 T+91bp ($66.831) - $400M pxd Aug 2021

Appalachian Power Co (Baa1/BBB+/A-)
-AEP 5.650% due 04/01/34 T+81bp (G97; $104.960) - $400M pxd Mar 2024
-AEP 3.700% due 05/01/50 T+97bp ($74.207) - $500M pxd May 2020

Ohio Power Company (Baa1/BBB+/A-)
-AEP 5.650% due 06/01/34 T+81bp (G96; $105.134) - $350M pxd May 2024
-AEP 2.900% due 10/01/51 T+92bp ($63.425) - $600M pxd Sep 2021

Other comps away:

Georgia Power Co (A3/A/A)
-SO 5.200% due 03/15/35 T+66bp (G77; $103.337) - $700M pxd Feb 2025
-SO 5.500% due 10/01/55 T+87bp ($98.953) - $500M pxd Sep 2025

Baltimore Gas & Electric (A3/A)
- EXC 5.450% due 06/01/35 T+76bp (G83; $104.470) - $650M pxd May 2025
-EXC 5.650% due 06/01/54 T+85bp ($101.380) - $400M pxd Jun 2024

Con Edison Co of NY (A3/A-/A-)
-ED 5.125% due 03/15/35 T+65bp (G74; $102.874) - $450M pxd Nov 2024
-ED 5.750% due 11/15/55 T+94bp ($101.528) - $900M pxd Nov 2025

Virginia Electric & Power Co (A3/BBB+/A)
-D 4.900% due 09/15/35 T+80bp (G83; $100.200) - $825M pxd Sep 2025
-D 5.600% due 09/15/55 T+98bp ($98.826) - $875M pxd Sep 2025

Tampa Electric Co (A3/BBB+/A)
-TE 5.150% due 03/01/35 T+77bp (G86; $102.178) - $600M pxd Mar 2025
-TE 5.000% due 07/15/52 T+85bp ($92.393) - $300M pxd Jul 2022

Arizona Public Service (Baa1/BBB+/A-)
-PNW 5.700% due 08/15/34 T+76bp (G89; $105.862) - $700M pxd May 2024
-PNW 5.900% due 08/15/55 T+97bp ($103.223) - $700M pxd Aug 2025

FINAL BOOKS:

$650m 30yr - $3.950bn (6.08x) - PEAK $4.250bn

[HA SUSTAINABLE INFRASTRUCTURE]

HA Sustainable Infrastructure Capital Inc (HASI), exp security ratings Ba1/BB/BB, US$600m SEC registered fixed rate reset jr subordinated notes (with coupon floor) due 11/15/56. Par call date: 8/17/31. Guarantor: 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”). Interest Rate: The Notes will bear interest: (i) from and including February 18, 2026 (which is the expected original issuance date) to, but excluding, the First Reset Date at the rate of [ ]% per year and (ii) from and including the First Reset Date, during each Reset Period, at a rate per year equal to the Five-year U.S. Treasury Rate as of the most recent Reset Interest Determination Date plus a spread of [ ]%, to be reset on each Reset Date; provided, that the interest rate during any Reset Period will not reset below [ ]% (which equals the initial interest rate on the Notes). Pricing 2/18. Settle 2/27 (T+7). 

VIA BofA (B&D)/GS/CACIB/MS/Rabo/SMBC joint active books. 

Announced with benchmark size, we heard initial thoughts as 7.625% area.

Went straight to launch at $600m 30.75nc5.5 at 7.125%.

Ultimately, a $600m deal priced as follows:

$600m 7.125% 11/15/56 100.00 7.126%. Back-end reset: T+347.8.

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

-HASI 8.000% due 06/01/56 nc 03/01/31 $105.13 (G312; 6.779% YTC) - $500m pxd NOV 2025 b/e +430.1

*** NC Mar ’31 6.779% YTC, add 2bp for curve = 6.80%.

Outstanding b/e 430.1 minus outstanding G312 = 118.1 * 0.2 = 23.62bp.

Outstanding b/e 430.1 minus new issue b/e 347.8 = 82.3 * 0.3 = 24.69bp.

Add 25bp for b/e differential = 7.05%.

New issue floor is lower than the outstanding floor. Outstanding coupon 8.00% minus new issue coupon 7.125% = 87.5bp * 0.2 = 17.5bp.

Add another 17.5p for floor differential gets f/v to 7.225%. At the 7.125% pricing level, CONCESSION IS NEG 10BP.

COMPS AWAY:

PCG&E Corp (Ba3/B/BB)
-PCG 6.850% due 09/15/56 nc 06/15/31 $100.00 (G316; 6.850% YTC) - $1bn pxd FEB 2026 b/e +322.5

PacifiCorp (Baa3/BB)
-BRKHEC 7.125% due 08/15/56 nc l05/17/31 $100.40 (G335; 7.033% YTC) - $1.1bn pxd FEB 2026 b/e +329.2

Spire Inc (Baa3/BBB-)
-SR 6.250% due 06/01/56 nc 03/01/31 $100.00 (G259; 6.249% YTC) - $450m pxd NOV 2025 b/e +255.6

Global Atlantic Fin Co (Baa3/BB+/BB+)
-GBLATL 7.250% due 03/01/56 nc 03/01/31 $100.35 (G351; 7.166% YTC) - $600m pxd NOV 2025 b/e +355.0

Seniors:

HA Sustainable (Baa3/BBB-/BBB-)
-HASI 6.150% (green) due 01/15/31 T+172bp (G173; $103.28) - $600m pxd JUN 2025
-HASI 6.750% (green) due 07/15/35 T+185bp (G191; $105.76) - $400m pxd JUN 2025

Jan ’31 G173, call new issue L5y f/v at 175bp.

5yr UST at 3.65%, add 175bp = 5.400%. At the 7.125% pricing level, Sr-Sub Differential is 172.5bp.

FINAL BOOK:

$600m 30.75nc5.5 Jr Sub - $4.400bn (7.33x) - PEAK $4.600bn

[REGENCY]

Regency Centers LP (REG) exp A3/A- (s/s) $450m (up from $400m) SEC registered 7y sr notes due 3/15/33. MWC then 2mos par call (1/15/33). Guarantor: Regency Centers Corp. UOP: we plan to use net proceeds from the offering to (i) reduce the outstanding balance on our line of credit, (ii) for the repayment of the $100 million aggregate principal amount outstanding of 3.81% notes due May 11, 2026 (the "2026 Notes") upon their maturity and (iii) for general corporate purposes, including, but not limited to, prefunding certain capital expenditures, development and redevelopment projects and the future repayment of other outstanding debt. Prior to using any of the net proceeds, we may invest the net proceeds in certificates of deposit, interest-bearing short-term investment grade securities or money-market accounts. First pay: 9/15/26. Denoms: 2,000 x 1,000. Sales into Canada: no. Pricing 2/18. Settle 2/23 (T+3). CUSIP: 75884RBF9.

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

Announced as $400m, we heard initial price thoughts as T+105 area.

Went straight to launch at $450m 7yr at T+75. 

Ultimately, a $450m deal priced as follows:

$450m 4.50% 3/15/33 99.376 4.604% T+75. MW+15. 

As for r/v, outstanding REG was quoted as follows:
-REG 5.000% due 07/15/32 T+86bp (G73; $102.720) - $400M pxd May 2025
-REG 5.250% due 01/15/34 T+65bp (G82; $103.410) - $400M pxd Jan 2024
-REG 5.100% due 01/15/35 T+75bp (G84; $102.000) - $325M pxd Aug 2024

** Outstanding Jan 35s G84; call new 7y f/v T+85bp; then take off 10bp for 7s/10s curve to get to T+75bp f/v. 

Going off the Jul 32s G73 plus curve would also get you to a similar spot.

At the T+75bp pricing level, CONCESSION IS FLAT.

Comps away:

Simon Property Group LP (A3/A)
-SPG 4.300% due 01/15/31 T+63bp (G63; $100.160) - $800M pxd Jan 2026
-SPG 5.500% due 03/08/33 T+48bp (G73; $105.530) - $650M pxd Mar 2023
-SPG 4.750% due 09/26/34 T+68bp (G78; $100.020) - $1B pxd Sep 2024
-SPG 5.125% due 10/01/35 T+78bp (G82; $102.070) - $800M pxd Aug 2025

Kimco Realty OP (A3/A-/A-)
-KIM 2.250% due 12/01/31 T+71bp (G62; $89.370) - $500M pxd Sep 2021
-KIM 4.600% due 02/01/33 T+47bp (G72; $100.360) - $650M pxd Aug 2022
-KIM 4.850% due 03/01/35 T+72bp (G80; $100.470) - $500M pxd Sep 2024
-KIM 5.300% due 02/01/36 T+78bp (G80; $103.500) - $500M pxd Jun 2025

FINAL BOOKS:

$450m 7yr - $3.000bn (6.67x) - PEAK $3.500bn