Commentary & Deal Flow

After Wednesday’s five deals priced with solid demand, we expected a backlog of issuers from earlier in the week to emerge. That dynamic played out as a flurry of 19 issuers came to the market today for $32.9bn. The 19 deals ties with Jan 6 for the second-largest deal day of the year, and today now stands as the largest Thursday deal-day on record, surpassing the prior record set on Thursday, March 26, 2020 during the COVID era, when 18 deals priced.

Today’s $32.9bn print provided a significant boost to weekly volume, bringing issuance up to $51.550bn, and within 21% of the average weekly estimate. With no new marketings remaining in the pipeline, and with the jobs report due tomorrow morning alongside a softer market tone, the primary calendar is likely finished for the week. We did, however, hear of at least one stand-down this morning. 

The largest transaction of the day came from HSBC, which priced an $8bn four-part deal - tying its largest issuance on record from May 18, 2016. HSBC continues to hold the top spot for the largest non-”six-pack" bank deal of all time.

Baker Hughes held investor calls yesterday, looking to fund its pending $13.6bn acquisition of Chart Industries in dual currencies. The company ultimately priced a $6.5bn six-part USD offering alongside a €3bn four-part EUR deal. Baker Hughes’ $6.5bn contribution, combined with $8.5bn from Eaton and $6.8bn from FIS, brings this week’s M&A-related issuance to $21.8bn. That figure slightly exceeds last week’s $21.3bn total ($20bn from Abbott and $1.3bn from Jacobs) and marks the largest M&A-driven supply week since the week ending 3/7/25. 

DE’s 3yr 3.900% coupon is the 4th lowest FIG coupon through 2023:

SEB’s 3y 4.00% coupon is the 5th lowest bank coupon through 2023:

XEL’s 10y 4.85% coupon is the 3rd lowest utility coupon through 2025:

XEL’s 30y 5.55% coupon is the 3rd lowest utility coupon through 2025:

Here’s Today’s Rundown:

[HSBC]

HSBC Holdings plc (HSBC) exp A3/A-/A+ (s/s/s) US$8bn SEC registered 4-part sr notes (4nc3 FTF due 3/10/30, 6nc5 FTF and/or FRN due 3/10/32 and 11nc10 FTF due 3/10/37). Par Redemption Dates: 4nc3: 3/10/29; 6nc5: 3/10/31; 11nc10: 3/10/36. Optional Redemption by Issuer: 4nc3 FTF: Par Redemption (par call 1 year prior to maturity), Certain tax events (any time), Loss Absorption Disqualification Event, Make Whole Call 6 month from issue date to 1 year prior to maturity; 6nc5 FTF: Par Redemption (par call 1 year prior to maturity), Certain tax events (any time), Loss Absorption Disqualification Event, Make Whole Call 6 month from issue date to 1 year prior to maturity; 6nc5 FRN: Par Redemption (par call 1 year prior to maturity), Certain tax events (any time), Loss Absorption Disqualification Event; 11nc10 FTF: Par Redemption (par call 1 year prior to maturity), Certain tax events (any time), Loss Absorption Disqualification Event, Make Whole Call 6 month from issue date to 1 year prior to maturity. First Interest Payment Dates: 4nc3 FTF 9/10/26; 6nc5 FTF 9/10/26; 6nc5 FRN 6/10/26; 11nc10 FTF 9/10/26. FTF Coupons: Semi-annual 30/360 until Par Redemption Date then quarterly ACT/360 SOFR + Xbps until maturity. FRN Coupon: Quarterly ACT/360 SOFR + Xbps until maturity. Listing: Application will be made to list the Notes on the NYSE in accordance with its rules. Denominations 200,000 X 1,000. Governing Law: New York, except that the waiver of set-off provisions will be governed by the laws of England and Wales. UOP: gcp. Pricing 3/5/26. Settle 3/10/26 (T+3). 4NC3 FTF CUSIP 404280FK0 / ISIN: US404280FK06. 6NC5 FTF CUSIP 404280FL8 / ISIN US404280FL88. 6NC5 FRN CUSIP 404280FN4 / ISIN US404280FN45. 11NC10 FTF CUSIP 404280FM6 / ISIN US404280FM61.

VIA HSBC (B&D) sole bookrunner.

Announced as a benchmark, final size came in at $8bn with price progression as follows:

4nc3 FTF - IPT T+115 area; GDNC T+80#; PXD $2bn 4.398% 3/10/30 100.00 4.398% T+80. MW+15. Back-end: SOFR+99.
6nc5 FRN - IPT SOFR equiv; GDNC Seqv; PXD $1.25bn 3/10/32 FRN at SOFR+121, at 100.
6nc5 FTF - IPT T+125 area; GDNC T+95#; PXD $2bn 4.675% 3/10/32 100.00 4.675% T+95. MW+15. Back-end: SOFR+121.
11nc10 FTF - IPT T+145 area; GDNC T+115#; PXD $2.75bn 5.279% 3/10/37 100.00 5.279% T+115. MW+20. Back-end: SOFR+155.

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

-HSBC 5.546% due 03/04/30 nc29 T+74bp (G74; $103.3) - $1.5bn pxd Feb 2024
-HSBC 4.619% due 11/06/31 nc30 T+81bp (G83; $100.3) - $2.25bn pxd 10/30/25 +90
-HSBC 5.133% due 11/06/36 nc35 T+104bp (G106; $99.6) - $2.25bn pxd 10/30/25 +105

** 11nc10 - outstanding Nov 36nc35 G106; plus 2bp for curve to get to T+108bp f/v. At the T+115bp pricing level, 11NC10 CONCESSION IS 7BP.

** 6nc5 - outstanding Nov 31nc30 G83; plus curve call f/v T+85bp. Or 11nc10 f/v T+108bp; minus 20bp 5s/10s curve at IPT to get to T+88bp f/v. Call f/v T+87bp At the T+95bp pricing level, 6NC5 CONCESSION IS 8BP.

** 4nc3 -Outstanding Mar 30nc29 G74; call new 4nc3 FTF T+74bp. At the T+80bp pricing level, 4NC3 CONCESSION IS 6BP.

FINAL BOOKS:

$2bn 4nc3 FTF - $6.200bn (3.10x) - PEAK $7.700bn

$1.25bn 6nc5 FRN - $4.700bn (3.76x) - PEAK $5.100bn

$2bn 6nc5 FTF - $6.000bn (3.00x) - PEAK $6.850bn

$2.75bn 11nc10 FTF - $8.300bn (3.02x) - PEAK $10.500bn

[BAKER HUGHES]

Baker Hughes Holdings LLC / Baker Hughes Co-Obligor Inc (BHI) exp A3/A (s/nw) US$6.5bn SEC registered 5-part sr notes (3y FXD due 3/11/29, 5y FXD due 6/15/31, 7y FXD due 6/15/33, 10y FXD due 6/15/36 and 30y FXD due 6/15/56). MWC then 1mo par call on 3y (2/11/29), 1mo on 5y (5/15/31), 2mos on 7y (4/15/33), 3mos on 10y (3/15/36) and 6mos on 30y (12/15/55). Special Mandatory Redemption (SMR): Yes, at 101%. Guarantor: Baker Hughes Company. Denoms: 2,000 x 1,000. Sales into Canada: Yes, via exemption. UOP: To fund part of the cash portion of the merger consideration for the Chart Merger, to pay related transaction fees and expenses and to repay Chart’s outstanding indebtedness. Marketing: https://dealroadshow.com/e/BAKER2026. Pricing 3/5. Settle 3/11 (T+4). 

VIA Citi/DB/GS (B&D)/JPM/MS joint active books. GS/MS as global coordinators.

Announced with benchmark size, final size came in at $6.5bn with price progression as follows:

3yr - IPT T+75 area; GDNC T+45#; PXD $500m 4.05% 3/11/29 99.958 4.065% T+45. MW+10.

5yr - IPT T+90 area,; GDNC T+65#; PXD $1.25bn 4.35% 6/15/31 99.815 4.391% T+65. MW+10.

7yr - IPT T+100 area; GDNC T+75#; PXD $750m 4.65% 6/15/33 99.805 4.683% T+75. MW+15.

10yr - IPT T+115 area; GDNC T+90#; PXD $2bn 5.00% 6/15/36 99.643 5.046% T+90. MW+15.

30yr - IPT T+135 area; GDNC T+110#; PXD $2bn 5.85% 6/15/56 99.898 5.858% T+110. MW+20.

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

BHI 3.337% due 12/01/27 T+34bp (G34; $99.26) - $1.35bn pxd JAN 2018

BHI 3.138% due 11/01/29 T+53bp (G47; $97.11) - $525m pxd NOV 2019

BHI 4.486% due 05/01/30 T+52bp (G59; $101.60) - $500m pxd APR 2020

BHI 4.080% due 12/01/47 T+90bp ($81.82) - $1.35bn pxd JAN 2018

*** 5yr: May ‘30 G59, add 6bp for ‘30/’31 curve gets f/v to T+65bp. At the T+65bp pricing level, 5yr CONCESSION IS FLAT.

*** 3yr: Dec ‘27 G34, add 1bp for curve gets f/v to T+35bp. At the T+35bp pricing level, 3yr CONCESSION IS FLAT.

*** 7yr: 5y f/v at T+65, add 10bp for IPT curve gets f/v to T+75bp. At the T+75bp pricing level, 7yr CONCESSION IS FLAT.

*** 30yr: Dec ‘47 T+90 ($82), 10s/30s IPT curve is 20bp add 8bp for ‘47/’56 curve = 98bp. Add 7bp for low $ gets f/v to T+105bp. At the T+110bp pricing level, 30yr CONCESSION IS 5BP.

*** 10yr: 30y f/v at T+105, take away 20bp for IPT curve gets f/v to T+85bp. At the T+90bp pricing level, 10yr CONCESSION IS 5BP.

FINAL BOOKS:

$500M 3yr - $3.200bn (6.40x) - PEAK $4.300bn

$1.25bn 5yr - $3.800bn (3.04x) - PEAK $5.000bn

$750M 7yr - $3.450bn (4.60x) - PEAK $4.300bn

$2bn 10yr - $5.800bn (2.90x) - PEAK $7.900bn

$2bn 30yr - $5.175bn (2.59x) - PEAK $7.100bn

[MERCEDES-BENZ]

Mercedes-Benz Finance North America LLC (MBGGR) exp A2/A (s/n) US$3bn 144A/Reg S 6-part sr notes (2y FXD and/or FRN due 3/10/28, 3y FXD and/or FRN due 3/10/29, 5y FXD due 3/10/31 and tap of MBGGR 5.45% 4/1/35 - $300m outstanding). MWC (FXD tranches). Tax Changes Call. Guarantor: Mercedes-Benz Group AG. Denoms: 150,000 x 1,000. Sale into Canada: No. UOP: To make intra-group loans to the Guarantor and/or entities owned directly or indirectly by the Guarantor for purposes of repayment of debt and for general corporate purposes. Pricing 3/5. Settle 3/10 (T+3).

VIA Citi/CACIB/JPM (B&D)/Miz/MUFG/StanChart joint books.

Announced with benchmark size, final size came in at $3bn with price progression as follows:

2y FRN - IPT SOFR equiv; GDNC Seqv; PXD $300m 3/10/28 FRN at SOFR+71, at 100.
2y FXD - IPT T+80 area; GDNC T+57#; PXD  $1bn 4.125% 3/10/28 99.956 4.148% T+57. MW+10.
3y FRN - IPT SOFR equiv; GDNC Seqv; dropped at launch
3y FXD - IPT T+90 area; GDNC T+67#; PXD $900m 4.25% 3/10/29 99.958 4.265% T+67. MW+15.
5y FXD - IPT T+105 area; GDNC T+78#; PXD $500m 4.50% 3/10/31 99.987 4.503% T+78. MW+15.
2035 tap - IPT T+115 area; GDNC T+93#; PXD $300m tap of 5.45% 4/1/35 at 102.788 5.062% T+93. MW+20. Total outstanding now $600m.

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

-MBGGR 4.750% due 03/31/28 T+54bp (G54; $101.25) - $450M pxd Mar 2025
-MBGGR 5.000% due 04/01/30 T+68bp (G72; $102.25) - $450M pxd Mar 2025
-MBGGR 5.450% due 04/01/35 T+84bp (G90; $103.53) - $300M pxd Mar 2025

** 5y -  Outstanding Apr 30s G72; plus 6bp for curve to get to T+78bp f/v for a new 5yr.  At the T+78bp pricing level, 5Y CONCESSION IS FLAT.

** 3y - 5yr f/v T+78bp minus 15bp 3s/5s curve = T+63bp. At the T+67bp pricing level, 3Y CONCESSION IS 4BP.

**  2y - outstanding Mar 28s T54/G54; call new 2y f/v T+54bp.  At the T+57bp pricing level, 2Y CONCESSION IS 3BP.

** 2035 tap - Outstanding 5.45% 4/1/35 T+84bp. Though some mentioned that the small size ($300m) makes it trade a bit tight, we are pegging it against its quoted bid level. At the T+93bp pricing level, 2035 TAP CONCESSION IS 9BP.

Comps away:

Toyota Motor Credit (A1/A+/A+)
-TOYOTA 3.750% due 01/12/28 T+25bp (G25; $99.88) - $750M pxd 01/07/26 +32
-TOYOTA 4.550% due 08/09/29 T+38bp (G34; $101.87) - $1bn pxd Aug 2024
-TOYOTA 4.200% due 01/10/31 T+53bp (G54; $99.84) - $750M pxd 01/07/26 +52

BMW US Capital (A2/A)
-BMW 4.150% due 08/11/27 T+44bp (G43; $100.19) - $750M pxd 08/06/25 +50
-BMW 4.500% due 08/11/30 T+67bp (G70; $100.47) - $1bn pxd 08/06/25 +75
-BMW 5.200% due 08/11/35 T+90bp (G95; $101.29) - $500M pxd 08/06/25 +100

Volkswagen Group America (Baa1/BBB+/A-)
-VW 4.450% due 09/11/27 T+68bp (G67; $100.27) - $700M pxd 09/02/25 +82
-VW 4.550% due 09/11/28 T+80bp (G79; $100.41) - $700M pxd 09/02/25 +95
-VW 4.850% due 09/11/30 T+90bp (G93; $100.96) - $600M pxd 09/02/25 +112
-VW 5.800% due 03/27/35 T+117bp (G125; $103.55) - $550M pxd Mar 2025

FINAL BOOKS:

$300M 2yr FRN - $725M (2.42x) - PEAK $800M

$1bn 2yr - $1.700bn (1.70x) - PEAK $1.900bn

$900M 3yr - $1.650bn (1.83x) - PEAK $1.750bn

$500M 5yr - $1.250bn (2.50x) - PEAK $1.800bn

$300M 2035 Tap - $750M (2.50x) - PEAK $1.200bn

[CHENIERE ENERGY]

Cheniere Energy, Inc. (LNG) exp Baa2/BBB/BBB (s/s/s) US$1.7bn 144A/RegS w/ reg rights 2-pt sr notes (10y due 07/30/36 and 30y due 07/30/56). MWC then 6 mos par call on 10y (01/30/36) and 6 mos on 30y (01/30/56). UoP: The issuer intends to use the proceeds from this offering for general corporate purposes, which may include, among other things, the repayment, refinancing or redemption of the issuer and its subsidiaries' existing indebtedness (including currently outstanding amounts under the CCH Term Loan Facility), funding capital expenditures, working capital and other business opportunities. Sales into Canada: Yes – via Exemption. Denominations: 2,000 x 1,000. 144A CUSIP/ISIN: 10y 16411RAP4/ US16411RAP47; 30y 16411RAQ2/ US16411RAQ20. Pricing 03/05. Settle 03/19 (T+10).

VIA CACIB/GS (B&D)/JPM/Miz/Natixis/Scotia joint active books.

Announced as a benchmark, we heard initial price thoughts as 10y T+140 area, 30y T+160 area.

Went straight to launch at $1bn 10y at T+110. $750m 30y at T+128.

Ultimately, a $1.7bn deal priced as follows

$1bn 5.20% 7/30/36 99.658 5.244% T+110. MW+20.

$750m 6.00% 7/30/56 99.524 6.035% T+128. MW+20.

As for r/v, outstanding LNG was quoted as follows:
-LNG 5.650% due 04/15/34 T+87bp (G104; $104.0) - $1.44bn exch. Sep 2024

** 10y - Outstanding LNG Apr 34s G104; plus 6bp for ‘34/’36 to get to T+110bp f/v. At the T+110bp pricing level, 10Y CONCESSION IS FLAT.

** 30y - 10y f/v T+110bp; plus 20bp 10s/30s curve at IPT = T+130bp f/v.  At the T+128bp pricing level, 30Y CONCESSION IS NEG 2BP.

Comps away:

Cheniere Energy Partners (Baa2/BBB)
-CQP 5.550% due 10/30/35 T+97bp (G103) - $999.25M exch. 01/26/26

Kinder Morgan (Baa2/BBB+/BBB+)
-KMI 6.400% due 01/05/36 T+84bp (G91) - $550M exch. Jan 2006
-KMI 5.950% due 08/01/54 T+111bp - $750M pxd Jul 2024

Williams Companies Inc (Baa2/BBB+/BBB)
-WMB 5.150% due 03/15/36 T+96bp (G97) - $1.25bn pxd 01/05/26 +100
-WMB 5.950% due 03/15/56 T+115bp - $1bn pxd 01/05/26 +112.5

FINAL BOOKS:

$1bn 10yr - $6.400bn (6.40x) - PEAK $8.000bn

$750M 30yr - $5.300bn (7.07x) - PEAK $7.000bn

[SEB]

Skandinaviska Enskilda Banken AB (SEB) exp Aa3/AA-/AA US$1.6bn 144A/Reg S 3-part Senior Preferred (3y FXD and/or FRN due 3/12/29 and 5y FXD due 3/12/31). Denoms: 200,000 x 1,000. Sale into Canada: Yes - Exemption. Governing Law: English law, except for subordination and waiver of set-off provisions which are governed by, and shall be construed in accordance with, the laws of the Kingdom of Sweden. UOP: gcp. Pricing 3/5. Settle 3/12 (T+5). IPTs: 3y and, 5y.

VIA GS/HSBC/JPM/SEB/WFS joint active books.

Announced with benchmark size, final size came in at $1.6bn with price progression as follows:

3yr FRN - IPT SOFR equiv; STL SOFR+68; PXD $500m 3/12/29 FRN at SOFR+68, at 100.

3yr FXD - IPT T+75 area; STL T+48; PXD $500m 4.00% 3/12/29 99.757 4.087% T+48. 

5yr  - IPT T+90 area; STL T+65; PXD $600m 4.375% 3/12/31 99.978 4.380% T+65.

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

Senior Preferred (SP):

• SEB 4.375% due 06/28 (bullet) T+40bp (G39; $100.83) - $750m pxd MAY 2025

*** 3yr: Jun ‘28 G39, add 5bp for curve gets f/v to T+45bp. At the T+48bp pricing level, 3yr CONCESSION IS 3BP.

*** 5yr: 3y f/v at T+45, add 15bp for IPT curve gets f/v to T+60bp. At the T+65bp pricing level, 5yr CONCESSION IS 5BP.

Swedbank (Aa2/AA-/AA)
-SWEDA 4.998% due 11/29 (bullet) T+49bp (G44; $103.09) - $650m pxd NOV 2024

Svenska Handelsbanken (Aa2/AA-/AA+)

• SHBASS 4.375% due 05/28 (bullet)T+38bp (G37; $100.87) - $750m pxd MAY 2025

Nordea Bank (Aa2/AA-/AA)

• NDAFH 4.375% due 03/28 (bullet) T+38bp (G38; $100.78) - $600m pxd MAR 2025
• NDAFH 4.375% due 09/29 (bullet) T+49bp (G45; $100.92) - $700m pxd SEPT 2024
• NDAFH 4.250% due 08/30 (bullet) T+51bp (G54; $100.03) - $600m pxd AUG 2025

Senior Non-Preferred (SNP):

Skandinaviska Enskilda Banken (A3/A/AA-)

• SEB 5.375% due 03/29 (bullet) T+59bp (G59; $103.28) - $750m pxd FEB 2024
• SEB 4.500% due 09/30 (bullet) T+67bp (G70; $100.40) - $750m pxd AUG 2025

Swedbank AB (A3/A/AA-)

• SWEDA 5.407% due 03/29 (bullet) T+54bp (G54; $103.53) - $750m pxd MAR 2024
• SWEDA 5.083% due 05/30 (bullet) T+63bp (G68; $102.80) - $750m pxd MAY 2025

Danske Bank (A3/A-/A+)

• DANBNK 5.019% due 03/31 nc30 T+73bp (G79; $102.03) - $750m pxd FEB 2025
• DANBNK 4.420% due 09/31 nc30 T+84bp (G87; $99.38) - $750m pxd SEPT 2025

FINAL BOOKS:

$500M 3yr SP FRN - $1.200bn (2.40x) - PEAK $1.900bn

$500M 3yr SP - $1.100bn (2.20x) - PEAK $1.300bn

$600M 5yr SP - $1.500bn (2.50x) - PEAK $2.300bn

[JOHN DEERE]

John Deere Capital Corp (DE) exp A1/A/A+ (s/s/s) US$1.5bn SEC registered 3-part sr notes, MTN's Series I (3y FXD and/or FRN due 3/9/29 and 5y FXD due 3/10/31). Denoms: 1,000 x 1,000. Sale into Canada: No. UOP: gcp. Pricing 3/5. Settle 3/10 (T+3). IPTs: 3y and, 5y.

VIA BNP/BofA/Citi (B&D)/CACIB/HSBC joint books.

Announced with benchmark size, final size came in at $1.5bn with price progression as follows:

3yr FRN - IPT SOFR equiv; GDNC Seqv; PXD $300m 3/9/29 FRN at SOFR+55, at 100.

3yr FXD - IPT T+65 area; GDNC T+35#; PXD $700m 3.90% 3/9/29 99.866 3.948% T+35.

5yr - IPT T+80 area; GDNC T+48#; PXD $500m 4.20% 3/10/31 99.978 4.205% T+48.

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

• DE 4.250% due 06/01/28 T+25bp (G25) - $700m pxd JUN 2025
• DE 4.550% due 06/01/30 T+36bp (G46) - $800m pxd JUN 2025
• DE 4.375% due 10/01/30 T+38bp (G40) - $600m pxd JUL 2025

Recently priced CAT was seen as the more relevant comp:

Caterpillar Inc (A2/A/A+)

• CAT 3.750% due 02/01/29 T+36bp (G36) - $950m pxd FEB 2026
• CAT 4.150% due 01/01/31 T+44bp (G45) - $500m pxd JAN 2026

*** 5yr: Jan ‘31 G45, call f/v at T+45bp. At the T+48bp pricing level, 5yr CONCESSION IS 3BP.

*** 3yr: Feb ‘29 G36, call f/v at T+35bp. At the T+35bp pricing level, 3yr CONCESSION IS FLAT.

FINAL BOOKS:

$300M 3yr FRN - $525M (1.75x) - PEAK $700M

$700M 3yr - $1.550bn (2.21x) - PEAK $2.350bn

$500M 5yr - $1.850bn (3.70x) - PEAK $3.000bn

[AMCOR FLEXIBLES]

Amcor Flexibles North America Inc (AMCR) exp Baa2/BBB/BBB+ (s/s/s) US$1.5bn SEC registered 2-part sr notes (3y FXD due 3/8/29 and 10y FXD due 3/12/36). MWCs on both tranches then 3mos par on 10yr.Guarantor: Amcor plc, Amcor Finance (USA), Inc., Amcor UK Finance plc, Amcor Group Finance plc, Amcor International UK plc, Berry Global Group, Inc. and Berry Global, Inc.. UOP: to repay either all or a portion of Amcor Flexibles North America’s $600.0 million 3.625% Guaranteed Senior Notes due 2026 and Berry Global’s $750.0 million 4.875% First Priority Senior Secured Notes due 2026 and the remainder, if any, to repay a portion of the Company's commercial paper borrowings and for general corporate purposes, which may include the repayment of other short- and long-term debt. Denoms: 2,000 x 1,000. Sales into Canada: yes via exemption. Settle: 3/10 (T+3). Pricing 3/5. CUSIPs: 3y: 02344AAJ7, 10y: 02344AAK4. ISINs: 3y:  US02344AAJ79, 10y: US02344AAK43. 

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

Announced with benchmark size, we heard initial thoughts as 3y T+90 area and 10y T+125 area

Went straight to launch at $750m 3y at T+65. $750m 10y at T+100.

Ultimately, a $1.5bn deal priced as follows:

$750m 4.25% 3/8/29 99.978 4.258% T+65. MW+10.

$750m 5.125% 3/12/36 99.883 5.140% T+100. MW+15.

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

Amcor Flexibles North America / Amcor Group Finance (Baa2/BBB)

• AMCR 4.800% due 03/17/28 T+47bp (G47; $101.47) - $725m pxd JUL 2025
• AMCR 5.450% due 05/23/29 T+59bp (G58; $103.68) - $500m pxd MAY 2024
• AMCR 5.100% due 03/17/30 T+58bp (G65; $102.85) - $724m pxd JUL 2025
• AMCR 5.500% due 03/17/35 T+76bp (G85; $104.27) - $750m pxd JUL 2025

*** 10yr: Mar ‘35 G85, add 5bp for ‘35/’36 curve gets f/ to T+90bp. At the T+100bp pricing level, 10yr CONCESSION IS 10BP.

*** 5yr: May ‘29 G58, call f/v at T+58bp. At the T+65bp pricing level, 5yr CONCESSION IS 7BP.

COMPS AWAY:

Packaging Corp of America (Baa1/BBB)

• PKG 3.000% due 12/15/29 T+56bp (G51; $96.07) - $500m pxd NOV 2019
• PKG 5.700% due 12/01/33 T+65bp (G83; $105.81) - $400m NOV 2023
• PKG 5.200% due 08/15/35 T+86bp (G92; $101.63) - $500m AUG 2025

Smurfit Westrock (Baa2/BBB)

• SW 5.200% (green) due 01/15/30 T+64bp (G72; $102.95) - $745m pxd APRL 2025
• SW 5.418% (green) due 01/15/35 T+86bp (G96; $103.04) - $849m pxd APRL 2025
• SW 5.185% due 01/15/36 T+91bp (G93; $101.21) - $800m pxd NOV 2025

International Paper Co (Baa2/BBB)

• IP 5.000% due 09/15/35 T+90bp (G93; $99.87) - $407m pxd MAY 2015

Weyerhaeuser Co (Baa2/BBB)

• WY 3.375% due 03/09/33 T+63bp (G85; $91.90) - $450m pxd FEB 2022

Sonoco Products Co (Baa3/BBB-)

• SON 4.600% due 09/01/29 T+77bp (G74; $100.79) - $600m pxd SEPT 2024
• SON 5.000% due 09/01/34 T+84bp (G96; $100.31) - $700m pxd SEPT 2024

FINAL BOOKS:

$750M 3yr - $1.400bn (1.87x) - PEAK $2.000bn

$750M 10yr - $1.900bn (2.53x) - PEAK $2.850bn

[SOUTHWESTERN EP]

Southwestern Electric Power Co (AEP) exp Baa2/BBB+/BBB+ (s/s/s) US$1.4bn SEC registered 3-part sr notes (tap of AEP 5.30% 4/1/33 - $350m outstanding, new 10y due 4/1/36 and new 30y due 4/1/56). MWC (T+30 on tap), then 3mos par call on 2033 tap (1/1/33), 3mos on 10y (1/1/36) and 6mos on 30y (10/1/55). Denoms: 2,000 x 1,000. Sales into Canada: Yes - Exemption. Sales in HK, Mainland China or Taiwan: No – All Solicitations Prohibited. UOP: redeem all or a portion of the $1,000,000,000 4.244% Senior Note due December 4, 2028 issued to an affiliate, to pay at their March 15, 2026 maturity $500,000,000 aggregate principal amount of the 1.65% Senior Notes, Series N, due 2026 and for general corporate purposes, which may include funding the construction program, repaying advances from affiliates and replenishing working capital. If The Company does not use the net proceeds immediately, The Company may temporarily invest them in short-term, interest-bearing obligations. At March 3, 2026, The Company had $58 million in advances from affiliates outstanding.  Pricing 3/5. Settle T+2. 

VIA BNY/Huntington/Miz (B&D)/Scotia joint active books. 

Announced with benchmark size, final size came in at $1.4bn with price progression as follows:

2033 tap - IPT T+105 area; STL T+72; PXD $300m 5.30% 4/1/33 tap at 102.505 4.864% T+72. MW+30. New outstanding now $650m.

10yr - IPT T+140 area; STL T+107; PXD $600m 5.20% 4/1/36 99.887 5.214% T+107. MW+20. 

30yr - IPT T+150 area; STL T+117; PXD $500m 5.90% 4/1/56 99.617 5.927% T+117. MW+20.

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

• AEP 4.100% due 09/15/28 T+61bp (G61; $99.86) - $575m pxd SEPT 2018
• AEP 5.300% due 04/01/33 T+70bp (G93; $102.91) - $350m MAR 2023
• AEP 3.250% (green) due 11/01/51 T+108bp ($66.03) - $650m pxd NOV 2021

*** 2033 tap: spotted at T+70bp. At the T+72bp pricing level, 2033 tap CONCESSION IS 2BP.

*** 10yr: April ‘33 G93, call new issue  7y f/v at 93bp. Add 10-15bp for 7s/10s curve gets f/v to T+105bp. At the T+107bp pricing level, 10yr CONCESSION IS 2BP.

*** 30yr: 10y f/v at T+105, add 10bp for IPT curve gets f/v to T+115bp. At the T+117bp pricing level, 30yr CONCESSION IS 2BP.

AEP Texas Inc (Baa3/BBB+)

• AEP 5.450% due 05/15/29 T+61bp (G60; $103.70) - $500m pxd MAY 2024
• AEP 5.700% due 05/15/34 T+80bp (G95; $105.24) - $500m pxd MAY 2024
• AEP 5.850% due 10/15/55 T+124bp ($98.26) - $750m pxd SEPT 2025

Public Service Oklahoma (Baa1/BBB+)

• AEP 5.450% due 01/15/36 T+100bp (G103; $102.65) - $800m pxd JUN 2025

Indiana Michigan Power (A2/BBB+)

• AEP 5.600% due 03/15/56 T+98bp ($98.35) - $650m pxd FEB 2026

Alabama Power Co (A1/A)

• SO 4.300% due 03/15/31 T+54bp (G55; $100.34) - $500m pxd SEPT 2025
• SO 5.100% due 04/02/35 T+61bp (G71; $102.74) - $500m pxd MAR 2025
• SO 3.125% due 07/15/51 T+88bp ($66.54) - $600m JUN 2021

Wisconsin Public Service (A2/A-)

• WEC 4.250% due 01/15/31 T+52bp (G53; $100.21) - $300m pxd JAN 2026

Georgia Power Co (A3/A)

• SO 4.850% due 03/15/31 T+55bp (G56; $102.70) - $750m pxd FEB 2025
• SO 5.200% due 03/15/35 T+65bp (G75; $103.16) - $700m pxd FEB 2025
• SO 5.500% due 10/01/55 T+91bp ($97.92) - $500m pxd SEPT 2025

Con Edison Co of NY Inc (A3/A-)

• ED 5.125% due 03/15/35 T+71bp (G80; $102.27) - $450m pxd NOV 2024
• ED 5.750% due 11/15/55 T+99bp ($100.34) - $900m pxd NOV 2025

Virginia Electric & Power Co (A3/BBB+)

• D 4.950% due 03/15/36 T+99bp (G99; $98.95) - $1.3bn pxd FEB 2026
• D 5.700% due 03/15/56 T+109bp ($98.23) - $850m pxd FEB 2026

Interstate Power & Light (Baa1/BBB+)

• LNT 5.700% due 10/15/33 T+66bp (G85; $105.81) - $300m pxd DEC 2025
• LNT 5.600% due 06/29/35 T+91bp (G98; $104.29) - $600m pxd MAY 2025
• LNT 5.600% due 10/01/55 T+103bp ($97.66) - $300m pxd SEPT 2025

Niagara Mohawk Power (Baa1/BBB+)

• NIMO 5.112% due 01/12/36 T+100bp (G101; $100.11) - $650m pxd JAN 2026
• NIMO 5.996% due 07/03/55 T+121bp ($100.69) - $1.1bn JUN 2025

FINAL BOOKS:

$300M 2033 Tap - $1.100bn (3.67x) - PEAK $1.900bn

$600M 10yr - $2.750bn (4.58x) - PEAK $4.450bn

$500M 30yr - $1.500bn (3.00x) - PEAK $3.300bn

[NORTHERN STATES POWER]

Northern States Power Co/MN (XEL) exp Aa3/A/A+ (s/s/s) US$1.2bn SEC registered 2-part first mortgage bonds (10y FXD due 5/15/36 and 30y FXD due 5/15/56). MWC then 6mos par call on 10y (11/15/35) and 6mos on 30y (11/15/55). Special Redemption: Tax Credit Event: 101% ((i) may only be sent by the later of (a) the end of the calendar year in which the first mortgage bonds of such series were issued and (b) six months from the date of issuance of the first mortgage bonds of such series and (ii) shall be accompanied by an officer's certificate stating that a Tax Credit Event has occurred or is occurring). Denoms: 2,000 x 1,000. Sale into Canada: Yes - Exemption. Selling Restrictions: No sales into Hong Kong or China. The first 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 (the "Code"). Each purchaser of the first mortgage bonds, by accepting such first mortgage bonds, will be deemed to have represented, warranted and agreed that it is not, and will not be, for its taxable year that includes the date of the issuance of the first mortgage bonds, a "specified foreign entity. UOP: To repay short-term borrowings, including a portion of outstanding CP, and for other general corporate purposes. Pricing 3/5. Settle 3/12.

VIA BNP/Key/PNC/SMBC/USB joint active books.

Announced as a benchmark, we heard initial price thoughts as 10y T+110 area, 30y T+120 area.

Guidance came in at 10y T+75#, 30y T+85#.

Ultimately, a $1.2bn deal priced as follows:

$600m 4.85% 5/15/36 99.804 4.873% T+75. MW+15.

$600m 5.55% 5/15/56 99.374 5.592% T+85. MW+15.

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

-XEL 5.050% due 05/15/35 T+68bp (G77; $101.75) - $600M pxd Apr 2025
-XEL 5.650% due 05/15/55 T+89bp ($99.96) - $500M pxd Apr 2025

** 10y – Outstanding XEL MN May 35s G77; plus 3bp for ‘35/’36 = T+80bp. At the T+75bp pricing level, 10Y CONCESSION IS NEG 5BP.

** 30y – Outstanding May 55s T+89bp; also 10y f/v T+80 plus 10bp 10s/30s curve = T+90bp. Call 30y f/v T+90bp. At the T+85bp pricing level, 30Y CONCESSION IS NEG 5BP.

Other XEL comps:

Northern States Power-Wisc (A1/A/A+)
-XEL 5.650% due 06/15/54 T+89bp ($100.35) - $650M pxd May 2024

Comps away:

Florida Power & Light Co (Aa2/A+/AA-)
-NEE 4.700% due 02/15/36 T+70bp (G70; $99.05) - $650M pxd 12/02/25 +65
-NEE 5.700% due 03/15/55 T+87bp ($101.14) - $950M pxd Feb 2025

Duke Energy Progress LLC (Aa3/A)
-DUK 5.050% due 03/15/35 T+71bp (G80; $101.55) - $850M pxd Mar 2025
-DUK 5.550% due 03/15/55 T+91bp ($98.45) - $750M pxd Mar 2025

Duke Energy Carolinas (Aa3/A)
-DUK 5.250% due 03/15/35 T+70bp (G78; $103.04) - $700M pxd Jan 2025
-DUK 5.400% due 01/15/54 T+90bp ($96.52) - $925M pxd Jun 2023

DTE Electric Co (Aa3/A/A+)
-DTE 4.850% due 03/01/36 T+81bp (G81; $99.36) - $800M pxd 02/18/26 +78
-DTE 5.550% due 03/01/56 T+91bp ($98.43) - $800M pxd 02/18/26 +85

Duke Energy Indiana LLC
-DUK 4.950% due 03/15/36 T+84bp (G84; $99.85) - $500M pxd 03/04/26 +90

Public Service Colorado (A1/A/A+)
-XEL 5.150% due 09/15/35 T+90bp (G97; $100.93) - $800M pxd 08/04/25 +97
-XEL 5.850% due 05/15/55 T+105bp ($100.70) - $800M pxd Mar 2025

Duke Energy Florida LLC (A1/A)
-DUK 4.850% due 12/01/35 T+79bp (G81; $99.50) - $600M pxd 11/24/25 +82
-DUK 6.200% due 11/15/53 T+95bp ($106.86) - $700M pxd Nov 2023

Public Service Electric (A1/A)
-PEG 4.900% due 08/15/35 T+70bp (G75; $100.56) - $450M pxd 08/07/25 +67
-PEG 5.625% due 01/01/56 T+87bp ($100.06) - $500M pxd 01/05/26 +80

Union Electric Co (A2/A)
-AEE 4.800% due 03/15/36 T+81bp (G81; $98.95) - $450M pxd 02/23/26 +78
-AEE 5.550% due 03/15/56 T+97bp ($97.57) - $450M pxd 02/23/26 +88

Entergy Louisiana LLC (A2/A)
-ETR 4.900% due 04/15/36 T+90bp (G89; $99.02) - $750M pxd 02/23/26 +88

Southwestern Public Service (A3/A-/A-)
-XEL 5.300% due 05/15/35 T+90bp (G99; $101.92) - $500M pxd Apr 2025
-XEL 6.000% due 06/01/54 T+110bp ($102.04) - $600M pxd Jun 2024

FINAL BOOKS:

$600M 10yr FMB - $4.400bn (7.33x) - PEAK $7.800bn

$600M 30yr FMB - $3.000bn (5.00x) - PEAK $6.150bn

[GLOBAL PAYMENTS]

Global Payments Inc (GPN) exp Baa3/BBB-/BBB- (s/s/s) US$1bn (WNG) SEC registered 2-pt sr notes (2yr due 03/15/28 and 7yr due 03/15/33). MWC then 2 mos par call on the 7yr. Use of Proceeds: To repay, in full, the 4.800% notes due April 2026 (the “4.800% Notes”) at maturity, and to repay a portion of the outstanding borrowings under the Revolving Credit Facility. Sale into Canada: Yes - Exemption. Denominations: 2,000 x 1,000. 2s/7s Cusip: 37940XBA9/ 37940XBB7; ISIN: US37940XBA90/ US37940XBB73. Pricing 03/05. Settle 03/12 (T+5).

VIA Barc/BofA(B&D on 7y)/JPM(B&D on 2y) joint active books.

Announced as $1bn no grow, we heard initial thoughts as 2y T+125 area and 7y T+175 area.

Went straight to launch at $500m 2y at T+98. $500m 7y at T+150.

Ultimately, a $1bn deal priced as follows;

$500m 4.55% 3/15/28 99.964 4.569% T+98. MW+15.

$500m 5.40% 3/15/33 99.890 5.419% T+150. MW+25.

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

Global Payments Inc (Baa3/BBB-)

• GPN 4.500% due 11/15/28 T+95bp (G94; $99.90) - $1.75bn pxd NOV 2025
• GPN 4.875% due 11/15/30 T+130bp (G132; $99.40) - $1.7bn pxd NOV 2025
• GPN 5.200% due 11/15/32 T+157bp (G140; $99.50) - $1bn pxd NOV 2025
• GPN 5.550% due 11/15/35 T+155bp (G157; $99.00) - $1.75bn pxd NOV 2025
• GPN 5.950% due 08/15/52 T+163bp ($94.50) - $750m pxd AUG 2022

*** 7yr: Nov ‘32 G140, add 3bp for curve call f/v at T+143bp. At the T+150bp pricing level, 7yr CONCESSION IS 7BP.

*** 2yr: 7y f/v at T+143, take away 50bp for IPT curve gets f/v to T+93bp. At the T+98bp pricing level, 2yr CONCESSION IS 5BP.

Paychex Inc (Baa1/BBB+)

• PAYX 5.350% due 04/15/32 T+128bp (G119; $101.80) - $1.5bn pxd APR 2025
• PAYX 5.600% due 04/15/35 T+124bp (G132; $101.60) - $1.2bn pxd APR 2025

Fiserv Inc (Baa2/BBB)

• FISV 4.550% due 02/15/31 T+101bp (G101; $99.20) - $1bn pxd AUG 2025
• FISV 5.250% due 08/11/35 T+125bp (G129; $99.10) - $1bn pxd AUG 2025

Fidelity National Information Services (Baa2/BBB/BBB)

• FIS 4.450% due 03/10/28 T+83bp (G83; $100.10) - $2bn pxd MAR 2026
• FIS 4.550% due 03/10/29 T+93bp (G93; $100.10) - $2.3bn pxd MAR 2026
• FIS 4.800% due 03/10/31 T+104bp (G104; $100.20) - $2bn pxd MAR 2026

FINAL BOOKS:

$500M 2yr - $1.700bn (3.40x) - PEAK $2.300bn

$500M 7yr - $1.500bn (3.00x) - PEAK $2.200bn

[HUMANA]

Humana Inc (HUM), exp issue ratings Baa3/BB+/BB (n/n/s), US$1bn SEC registered 30nc5 fixed rate reset $1,000 par jr subordinated notes due 9/15/56. Reset Date: September 15, 2031 (“First Reset Date”), and September 15 of every fifth year (“Reset Period”) after 2031. Interest Rate: The Notes will bear interest: (i) From and including March 9, 2026 (the “original issue date”) to, but excluding September 15, 2031 (the “First Reset Date”), at the rate of [•]% per annum; and (ii) From and including the First Reset Date, during each Reset Period, at a rate per annum 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). Interest Payment Dates: September 15 of each year, beginning on March 9, 2026. Pricing 3/5. Settle T+2. 

VIA GS (B&D)/JPM/Miz/TSI/WFS joint books. 

Announced with benchmark size, we heard initial thoughts as 6.875% area.

Went straight to launch at $1bn 30.5nc5.25 at 6.625%.

Ultimately, a $1bn deal priced as follows:

$1bn 6.625% 9/15/56 100.00 6.625%. Back-end Reset: T+289.1.

As for r/v, this is HUM’s debut Jr Sub thus CONCESSION N/A.

CVS Health Corp (Ba1/BB+/BB+)

·       CVS 7.000% due 12/01/55 nc30 (G289; $105.13) b/e+185bp

·       CVS 6.750% due 09/01/54 nc34 (G252; $103.63) b/e+219bp

TELUS Corp (Baa3/BB)

·       TCN 6.375% due 03/01/56 nc30(G269; $101.44) - b/e+233bp

·       TCN 6.625% due 03/01/56 nc35(G252; $100.53) - b/e+244bp

·       TCN 6.625% due 07/01/55 nc30 (G277; $102.78) - b/e+223bp 

·       TCN 7.000% due 07/01/55 nc35 (G271; $104.70) - b/e+226bp

Phillips 66 Co (Baa2/BBB-)

·       PSX 5.875% due 12/01/55 nc30 (G228; $100.24) - b/e+213bp

·       PSX 6.200% due 12/01/55 nc35 (G217; $101.18) - b/e+194bp

Energy Transfer LP (Baa3/BB+/BB+)

·       ET 6.500% due 11/01/55 nc30 (G268; $100.85) - b/e+260bp

·       ET 6.750% due 11/01/55 nc35 (G248; $101.95) - b/e+238bp

Dentsply Sirona (Baa3/BB)

·       XRAY 8.375% due 06/01/55 nc30 (G438; $100.32) - b/e+463bp

Bell Telephone Co of Canada (Baa3/BB+)

·       BCECN 6.875% due 06/01/55 nc30 (G239; $104.00) - b/e+215bp

·       BCECN 7.000% due 06/01/55 nc35(G236; $105.30) - b/e+218bp

Rogers Communications Inc (Ba1/BB)

·       RCICN 7.000% due 02/01/55 nc30 (G265; $104.49) - b/e+207bp

·       RCICN 7.125% due 02/01/55 nc35 (G262; $105.56) - b/e+226bp

Seniors: 

Humana Inc (Baa2/BBB/BBB-)

·       HUM 5.750% due 12/01/28 T+87bp (G86; $103.24)

·       HUM 4.875% due 04/01/30 T+90bp (G97; $100.94)

·       HUM 5.375% due 04/01/31 T+106bp (G106; $102.66)

·       HUM 2.150% due 02/01/32 T+105bp (G96; $86.71)

·       HUM 5.550% due 05/01/35 T+123bp (G131; $101.46)

·       HUM 6.000% due 05/01/55 T+151bp (G152; $96.61)

*** Aprl ’31 G106, call L5y f/v at T+108bp.

5y UST at 3.74%, add 108bp = 4.82%. At the 6.625% pricing level, the Sr-Sub Differential is 180bp.

CVS Health Corp (Baa1/BBB)

·       CVS 5.550% due 06/01/31 T+75bp (G74; $104.93)

·       CVS 5.000% due 09/01/32 T+94bp (G80; $101.96)

FINAL BOOK:

$1bn 30.5nc5.5 Jr Sub - $2.800bn (2.80x) - PEAK $4.000bn

[O’REILLY]

O'Reilly Automotive Inc (ORLY) exp Baa1/BBB (s/s) US$850m SEC registered 10y sr notes due 03/12/36. MWC then 3 mos par call. 101 CoC. Use of Proceeds: To repay at maturity the outstanding 3.550% senior notes due 2026, to repay a portion of amounts outstanding under the company's commercial paper program and, to the extent any net proceeds remain, for general corporate purposes, which may include ordinary course working capital, repurchases of shares of common stock, and investments in other business opportunities, including acquisitions, and to pay related fees and expenses. Denominations: 2,000 x 1,000. Sale into Canada: Yes - Exemption. Cusip: 67103HAP2. Pricing 03/05. Settle 03/12 (T+5).  

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

Announced with benchmark size, we heard initial thoughts as T+130 area.

Went straight to launch at $850m 10y at T+100.

Ultimately, a $850m deal priced as follows:

$850m 5.10% 3/12/36 99.690 5.140% T+100. MW+15.

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

• ORLY 4.200% due 04/01/30 T+57bp (G62; $99.66) - $500m pxd MAR 2020
• ORLY 1.750% due 03/15/31 T+71bp (G71; $88.04) - $500m pxd SEPT 2020
• ORLY 4.700% due 06/15/32 T+84bp (G73; $100.72) - $850m pxd JUN 2022
• ORLY 5.000% due 08/19/34 T+76bp (G88; $100.73) - $500m pxd AUG 2024

*** Outstanding ‘32/’34 curve is fairly wide at 15bp. Aug ‘34 G88, add 8bp for ‘34/’36 curve gets f/v to T+96bp. At the T+100bp pricing level, CONCESSION IS 4BP.

AutoZone Inc (Baa1/BBB)

• AZO 5.125% due 06/15/30 T+65bp (G69; $102.85) - $500m pxd APRL 2025
• AZO 5.400% due 07/15/34 T+75bp (G88; $103.44) - $700m pxd JUN 2024

FINAL BOOKS:

$850M 10yr - $4.900bn (5.8x) - PEAK $5.500bn

[VALERO ENERGY]

Valero Energy Corp (VLO) exp Baa2/BBB/BBB (s/s/s) US$850m SEC registered 10y sr notes due 3/10/36. MWC then 3mos par call (12/10/35). Denoms: 2,000 x 1,000. Sale into Canada: No. Sale into HK or Mainland China: No - All Solicitations Prohibited. UOP: For general corporate purposes, including the repayment, repurchase, or redemption of (i) the remaining $100 million aggregate principal amount of the 7.65% debentures, which mature on July 1, 2026, (ii) the remaining $426 million aggregate principal amount of the 3.400% Notes, which mature on September 15, 2026, and (iii) the remaining $146 million aggregate principal amount of the 4.375% Notes, which mature on December 15, 2026. Pricing 3/5. Settle 3/10 (T+3). Cusip: 91913YBG4. ISIN: US91913YBG44.

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

Announced as a benchmark, we heard initial price thoughts as T+135 area.

Guidance came in at T+102#.

Ultimately, a $850m deal priced as follows

$850m 5.15% 3/10/36 99.985 5.152% T+102. MW+20.

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

-VLO 5.150% due 02/15/30 T+54bp (G60; $103.10) - $650M pxd Feb 2025
-VLO 6.625% due 06/15/37 T+113bp (G103; $111.50) - $1.38bn pxd Jun 2007

VLO is pretty illiquid, so most think it would price flat or a bit inside of MPC:

Marathon Petroleum Corp (Baa2/BBB/BBB)
-MPC 5.150% due 03/01/30 T+60bp (G66; $102.90) - $1.1bn pxd Feb 2025
-MPC 5.700% due 03/01/35 T+92bp (G100; $104.50) - $900M pxd Feb 2025

** Outstanding MPC Mar 35s G100; plus 3bp for curve to get to new 10y f/v T+103bp.

VLO should land flattish to MPC, call f/v T+103bp. At the T+102bp pricing level, CONCESSION IS NEG 1BP.

Comps away:

Phillips 66 Co (Baa1/BBB+)
-PSX 5.250% due 06/15/31 T+70bp (G69; $103.70) - $1.2bn pxd Feb 2024
-PSX 4.950% due 03/15/35 T+81bp (G87; $100.00) - $600M pxd Sep 2024

FINAL BOOKS:

$850M 10yr - $2.100bn (2.5x) - PEAK $5.250bn

[WASTE CONNECTIONS]

Waste Connections Inc (WCNCN) exp A3/BBB+/A- (s/s/s) US$600m SEC registered 10y sr notes due 07/15/36. MWC then 3 mos par call (04/15/36). 101 CoC. Use of Proceeds: To repay borrowings outstanding under the Revolving Credit Facility (See Red). Denominations: 2,000 x 1,000. Cusip: 94106BAK7. ISIN: US94106BAK70. Sale into Canada: No. Pricing 03/05. Settle 03/16 (T+7).

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

Announced as a benchmark, we heard initial price thoughts as T+100 area.

Guidance came in at T+70#.

Ultimately, a $600m  deal priced as follows

$600m 4.80% 7/15/36 99.732 4.834% T+70. MW+15.

As for r/v, outstanding WCNCN was quoted as follows:
-WCNCN 3.500% due 05/01/29 T+33bp (G32; $98.74) - $500M pxd Apr 2019
-WCNCN 2.600% due 02/01/30 T+39bp (G46; $94.59) - $600M pxd Jan 2020
-WCNCN 2.200% due 01/15/32 T+65bp (G56; $88.87) - $650M pxd Sep 2021
-WCNCN 3.200% due 06/01/32 T+69bp (G57; $93.44) - $500M pxd Mar 2022
-WCNCN 4.200% due 01/15/33 T+41bp (G64; $97.99) - $750M pxd Aug 2022
-WCNCN 5.000% due 03/01/34 T+50bp (G66; $102.37) - $750M pxd Feb 2024
-WCNCN 5.250% due 09/01/35 T+62bp (G67; $103.68) - $500M pxd May 2025

** Outstanding Sep 35s G67; plus 3bp for ‘35/’36 curve to get to f/v of T+70bp. At the T+70bp pricing level, CONCESSION IS FLAT.

Comps away:

Waste Management Inc (A3/A-/A-)
-WM 4.650% due 03/15/30 T+37bp (G43; $102.01) - $700M pxd Oct 2024
-WM 4.950% due 07/03/31 T+45bp (G43; $103.57) - $750M pxd Jun 2024
-WM 4.800% due 03/15/32 T+56bp (G47; $102.65) - $750M pxd Oct 2024
-WM 4.950% due 03/15/35 T+53bp (G61; $102.05) - $1.5bn pxd Oct 2024

Republic Services Inc (A3/A-/A-)
-RSG 5.000% due 11/15/29 T+49bp (G45; $103.03) - $400M pxd Jun 2024
-RSG 4.750% due 07/15/30 T+46bp (G50; $102.19) - $500M pxd Mar 2025
-RSG 5.000% due 12/15/33 T+36bp (G54; $103.20) - $650M pxd Dec 2023
-RSG 5.200% due 11/15/34 T+54bp (G65; $103.64) - $500M pxd Jun 2024
-RSG 5.150% due 03/15/35 T+52bp (G60; $103.55) - $700M pxd Mar 2025

FINAL BOOKS:

$600M L10yr - $1.900bn (3.2x) - PEAK $3.300bn

[SIERRA PACIFIC POWER CO]

Sierra Pacific Power Co (BRKHEC), exp issue ratings Baa3/BBB (s/s), US$600m SEC registered 30.5nc5.5 fixed rate reset jr subordinated notes due 9/15/56 (with coupon floor). Reset Date: September 15, 2031 (“First Reset Date”) and September 15 of every fifth year after 2031.. Pricing 3/5. Settle 3/9 (T+2). 

VIA BofA (B&D)/MUFG/Scotia/TSI/USB joint active books

Announced with benchmark size, we heard initial thoughts as 6.75% area.

Guidance came in at 6.375%#.

Ultimately, a $600m deal priced as follows:

$600m 6.375% 9/15/56 100.00 6.375%. Back-end reset: T+263.8.

As for r/v, the outstanding BRKHEC Jr Sub does not have a floor provision whereas the new issue does thus CONCESSION N/A. 

Sierra Pacific Power Co (Baa3/BBB/NR)

·       BRKHEC 6.200% due 09/16/55 nc 06/16/30 ($99.17; G272; YTC 6.414%) - 30NC5 b/e +254.9bp

 30NC5 Hybrid Comps:

Nevada Power Co (Baa2/BBB/NR)

·       BRKHEC 6.250% due 02/15/55 nc30 ($100.88; YTC 5.997%) - b/e +193.6bp

PacifiCorp (Baa3/BB/NR)

·       BRKHEC 7.125% due 05/17/56 nc31 ($96.06; YTC 8.067%) - b/e +329.2bp

·       BRKHEC 7.375% due 06/17/55 nc30 ($98.50; YTC 7.796%) - b/e+331.9bp

NextEra Energy Capital Holdings Inc (Baa2/BBB/BBB)

·       NEE 6.375% due 05/15/55 nc30 ($103.06; YTC 5.548%) - b/e +205.3bp

·       NEE 6.700% due 06/01/54 nc29 ($103.17; YTC 5.620%) - b/e +236.4bp

WEC Energy Group Inc (Baa2/BBB/BBB-)

·       WEC 5.625% due 02/15/56 nc31 ($100.25; YTC 5.566%) - b/e +190.5bp

Xcel Energy Inc (Baa2/BBB-/BBB-)

·       XEL 5.750% due 09/03/56 nc31 ($99.38; YTC 5.889%) - b/e +216.8bp

Dominion Energy Inc (Baa3/BBB-/BBB-)

·       D 6.000% due 11/15/55 nc30 ($101.00; YTC 5.755%) - b/e +226.2bp

·       D 6.875% due 11/03/54 nc29 ($103.88; YTC 5.688%) - b/e +238.6bp

Entergy Corp (Baa3/BBB-/NR)

·       ETR 5.875% due 03/15/56 nc31 ($100.00; YTC 5.872%) - b/e +217.9bp

·       ETR 7.125% due 09/01/54 nc29 ($104.25; YTC 5.762%) - b/e+267.0bp

Alliant Energy Corp (Baa3/BBB-/NR)

·       LNT 5.750% due 01/01/56 nc31 ($98.88; YTC 6.023%) - b/e +207.7bp

Eversource Energy (Baa3/BBB-/BB+)

·       ES 6.100% due 05/15/56 nc31 ($100.19; YTC 6.059%) - b/e +252.1bp

American Electric Power Co Inc (Baa3/BBB-/BB+)

·       AEP 5.800% due 12/15/55 nc30 ($99.75; YTC 5.862%) - b/e +212.8bp

·       AEP 7.050% due 09/15/54 nc29 ($104.58; YTC 5.600%) - b/e +275.0bp

NiSource Inc (Baa3/BBB-/BB+)

·       NI 5.750% due 04/15/56 nc31 ($99.88; YTC 5.773%) - b/e +203.5bp

·       NI 6.950% due 08/30/54 nc29 ($103.88; YTC 5.708%) - b/e +245.1bp

30NC10 Hybrid Comps:

NextEra Energy Capital Holdings Inc (Baa2/BBB/BBB)

·       NEE 6.500% due 05/15/55 nc35 ($105.13; YTC 5.774%) - b/e +197.9b[

·       NEE 6.750% due 03/15/54 nc34 ($105.53; YTC 5.875%) - b/e +245.7bp

Southern Co (Baa2/BBB/BBB-)

·       SO 6.375% due 12/15/54 nc34 ($103.67; YTC 5.836%) - b/e +206.9bp

Dominion Energy Inc (Baa3/BBB-/BBB-)

·       D 6.200% due 11/15/55 nc30 ($100.63; YTC 6.114%) - b/e +200.6bp

·       D 6.625% due 02/15/55 nc35 ($102.63; YTC 6.237%) - b/e +220.7bp

Entergy Corp (Baa3/BBB-/NR)

·       ETR 6.100% due 03/15/56 nc36 ($100.13; YTC 6.081%) - b/e +201.3bp

Eversource Energy (Baa3/BBB-/BB+)

·       ES 6.350% due 05/15/56 nc36 ($100.31; YTC 6.309%) - b/e +232.5bp

American Electric Power Co Inc (Baa3/BBB-/BB+)

·       AEP 6.050% due 12/15/55 nc35 ($99.38; YTC 6.137%) - b/e +194.0bp

NiSource Inc (Baa3/BBB-/BB+)

·       NI 6.375% due 12/31/54 nc34 ($103.38; YTC 5.879%) - b/e +252.7bp

FINAL BOOK:

$600M 30.5nc5.5 Jr Sub - $2.100bn (3.5x) - PEAK $3.400bn

[ESSENTIAL UTILITIES]

Essential Utilities Inc (WTRG) exp Baa2/BBB+ (n/p) US$500m (up from $400m) SEC registered 10y sr notes due 03/15/36. MWC then 3 mos par call (12/15/35). Use of Proceeds: Net proceeds will be used for general corporate purposes, including to repay a portion of the Company's commercial paper borrowings, for working capital, capital expenditures or waste and wastewater utility acquisitions. Sale into Canada: Yes - Exemption. Denominations: 2,000 x 1,000. Cusip: 29670GAL6. ISIN: US29670GAL68. Pricing 03/05. Settle 03/09 (T+2).

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

Announced as $400m, we heard initial price thoughts as T+130 area.

Went straight to launch at $500m 10y at T+100.

Ultimately, a $500m deal priced as follows:

$500m 5.125% 3/15/36 99.867 5.142% T+100. MW+15.

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

-WTRG 2.704% due 04/15/30 T+59bp (G64; $94.00) - $500M pxd Apr 2020
-WTRG 2.400% due 05/01/31 T+77bp (G75; $90.40) - $400M pxd Apr 2021
-WTRG 5.250% due 08/15/35 T+90bp (G96; $101.60) - $500M pxd 08/05/25 +107

** Outstanding Aug 35s G96; plus 2bp for curve to get to T+98bp f/v. At the T+100bp pricing level, CONCESSION IS 2BP.

Comps away:

American Water Capital (Baa1/A)
-AWK 2.800% due 05/01/30 T+41bp (G46; $94.90) - $500M pxd Apr 2020
-AWK 5.250% due 03/01/35 T+68bp (G77; $103.10) - $800M pxd Feb 2025

NextEra Energy Capital (Baa1/BBB+/A-)
-NEE 4.400% due 03/01/31 T+62bp (G62; $100.20) - $700M pxd 02/03/26 +57
-NEE 5.450% due 03/15/35 T+86bp (G94; $103.30) - $1bn pxd Jan 2025

Southern Co (Baa1/BBB+/BBB+)
-SO 4.850% due 03/15/35 T+85bp (G92; $99.00) - $750M pxd Sep 2024

Xcel Energy Inc (Baa1/BBB/BBB+)
-XEL 5.600% due 04/15/35 T+100bp (G110; $103.30) - $750M pxd Mar 2025

Ameren Corp (Baa1/BBB)
-AEE 5.000% due 05/15/36 T+100bp (G99; $98.90) - $400M pxd 02/26/26 +100

NiSource Inc (Baa2/BBB+/BBB)
-NI 5.350% due 07/15/35 T+92bp (G98; $102.20) - $900M pxd 06/23/25 +105

Exelon Corp (Baa2/BBB+)
-EXC 5.125% due 03/15/31 T+65bp (G65; $103.40) - $500M pxd Feb 2025
-EXC 4.950% due 03/15/36 T+104bp (G104; $98.30) - $775M pxd 02/18/26 +92

American Electric Power (Baa2/BBB/BBB)
-AEP 5.625% due 03/01/33 T+62bp (G86; $105.10) - $850M pxd Feb 2023

DTE Energy Co (Baa2/BBB/BBB)
-DTE 5.200% due 04/01/30 T+61bp (G67; $103.20) - $1.1bn pxd Feb 2025
-DTE 5.050% due 10/01/35 T+97bp (G100; $99.60) - $550M pxd 09/09/25 +102

Eversource Energy (Baa2/BBB/BBB)
-ES 4.450% due 12/15/30 T+82bp (G83; $99.60) - $600M pxd 10/15/25 +87
-ES 5.850% due 04/15/31 T+87bp (G87; $105.70) - $700M pxd Apr 2024
-ES 5.950% due 07/15/34 T+89bp (G102; $106.30) - $700M pxd Apr 2024

FINAL BOOKS:

$500M 10yr - $3.200bn (6.4x) - PEAK $3.700bn

[HASBRO]

Hasbro Inc (HAS) exp Baa2/BBB (s/s) US$400m (up from $300m) SEC registered 5y sr notes due 3/12/31. MWC then 1mo par call (2/12/31). UOP: general corporate purposes, including, together with cash on hand, to redeem or repay the outstanding 2026 Notes at or before maturity. Denoms: 2,000 x 1,000. Sales into Canada: Yes via exemption. Settle 3/12 (T+5). Pricing 3/5. CUSIP / ISIN: 418056BB2 / US418056BB29. 

VIA BofA (B&D)/Citi/JPM/Scotia joint active book. 

Announced with $300m size, we heard initial thoughts as T+125 area.

Went straight to launch at $400m 5y at T+95.

Ultimately, a $400m deal priced as follows:

$400m 4.65% 3/12/31 99.850 4.684% T+95. MW+15.

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

• HAS 3.900% due 11/19/29 T+82bp (G77; $98.38) - $900m pxd NOV 2019
• HAS 6.050% due 05/14/34 T+96bp (G111; $106.44) - $500m pxd MAY 2024

*** May ‘34 G111, take away 5bp for ‘34/’33 curve call 7y f/v at 105bp. Take away 10-15bp for 7s/5s curve gets f/v to T+92bp. At the T+95bp pricing level, CONCESSION IS 3BP.

Best Buy Co Inc (A3/BBB+)

• BBY 1.950% due 10/01/30 T+77bp (G79; $89.75) - $650m pxd SEPT 2020

Dollar Tree Inc (Baa2/BBB)

• DLTR 2.650% due 12/01/31 T+83bp (G76; $90.67) - $800m pxd NOV 2021

Take-Two Interactive Software (Baa2/BBB)

• TTWO 5.400% due 06/12/29 T+77bp (G76; $103.16) - $300m pxd JUN 2024
• TTWO 4.000% due 04/14/32 T+99bp (G88; $96.46) - $500m pxd APRL 2022
• TTWO 5.600% due 06/12/34 T+104bp (G118; $103.02) - $300m pxd JUN 2024

Dick's Sporting Goods (Baa2/BBB)

• DKS 3.150% due 01/15/32 T+98bp (G89; $92.32) - $750m - pxd JAN 2022

Dollar General Corp (Baa3/BBB)

• DG 5.200% due 07/05/28 T+55bp (G55; $102.34) - $500m - pxd JUN 2023
• DG 3.500% due 04/03/30 T+72bp (G78; $96.66) - $1bn pxd APRL 2020
• DG 5.450% due 07/05/33 T+64bp (G85; $104.25) - $1bn pxd JUN 2023

Mattel Inc (Baa3/BBB)

• MAT 5.000% due 11/17/30 T+110bp (G112; $100.89) - $600m pxd NOV 2025

Conagra Brands Inc (Baa3/BBB-)

• CAG 5.000% due 08/01/30 T+95bp (G99; $101.43) - $500m pxd JUL 2025
• CAG 5.750% due 08/01/35 T+135bp (G141; $102.16) - $500m pxd JUL 2025

Bacardi-Martini BV (Baa3/BBB-)

• BACARD 5.550% due 02/01/30 T+97bp (G104; $103.11) - $600m pxd JAN 2025
• BACARD 6.000% due 02/01/35 T+136bp (G146; $103.71) - $400m pxd JAN 2025

FINAL BOOKS:

$400M 5yr - $2.100bn (5.3x) - PEAK $2.600bn

[EVERGY]

Evergy Inc (EVRG) exp Baa2/BBB (s/s) US$350m WNG SEC registered 3y sr notes due 03/15/29. MWC then 1 mos par call (02/15/29). Special Redemption: 101% upon a Tax Credit Event. Use of Proceeds: (i) to repay a portion of its and its subsidiaries' outstanding commercial paper borrowings and (ii) for general corporate purposes. Denominations: 2,000 x 1,000. Sale into Canada: Yes - Exemption. Sale into HK/China: None - All Solicitations Prohibited. CUSIP: 30034WAF3. ISIN: US30034WAF32. Pricing 03/05. Settle 03/10 (T+3).

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

Announced as $350m WNG, we heard initial price thoughts as T+95 area.

Went straight to launch at T+65.

Ultimately, a $350m deal priced as follows

$350m 4.25% 3/15/29 99.988 4.254% T+65. MW+10.

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

-EVRG 2.900% due 09/15/29 T+70bp (G66; $95.49) - $800M pxd Sep 2019

** Outstanding EVRG Sep 29s G66; minus 4bp for curve = T+62bp f/v.  (3bp)

Could also look at the recently priced Spire: 

Spire Inc (Baa2/BBB)
-SR 4.600% due 09/01/31 T+94bp (G89; $99.71) - $400M pxd 02/04/26 +82

** SR Sep 31s G89; minus 20bp 3s/5s curve to get to T+69bp f/v for a new 3y. (neg 4bp)

Between 3bp vs direct and neg 4bp vs SR, call CONCESSION FLAT.

Comps away:

NextEra Energy Capital (Baa1/BBB+/A-)
-NEE 4.900% due 03/15/29 T+54bp (G54; $102.11) - $900M pxd Jan 2024
-NEE 4.400% due 03/01/31 T+64bp (G64; $100.17) - $700M pxd 02/03/26 +57

Xcel Energy Inc (Baa1/BBB/BBB+)
-XEL 4.750% due 03/21/28 T+53bp (G53; $101.20) - $350M pxd Mar 2025

Black Hills Corp (Baa2/BBB+)
-BKH 4.550% due 01/31/31 T+78bp (G79; $100.21) - $450M pxd 09/25/25 +80

Exelon Corp (Baa2/BBB+)
-EXC 5.125% due 03/15/31 T+65bp (G65; $103.33) - $500M pxd Feb 2025

Dominion Energy Inc (Baa2/BBB/BBB+)
-D 4.600% due 05/15/28 T+48bp (G48; $101.08) - $1bn pxd May 2025
-D 5.000% due 06/15/30 T+63bp (G68; $102.46) - $800M pxd Mar 2025

DTE Energy Co (Baa2/BBB/BBB)
-DTE 5.200% due 04/01/30 T+63bp (G69; $103.08) - $1.1bn pxd Feb 2025

Eversource Energy (Baa2/BBB/BBB)
-ES 4.450% due 12/15/30 T+79bp (G80; $99.73) - $600M pxd 10/15/25 +87

Pinnacle West Capital (Baa2/BBB/BBB)
-PNW 4.900% due 05/15/28 T+53bp (G53; $101.58) - $400M pxd May 2025
-PNW 5.150% due 05/15/30 T+66bp (G71; $102.86) - $400M pxd May 2025

Public Service Enterprise (Baa2/BBB)
-PEG 4.900% due 03/15/30 T+54bp (G60; $102.30) - $600M pxd Mar 2025

FINAL BOOKS:

$350M 3yr - $1.925bn (5.5x) - PEAK $2.425bn

[AMERICAN TRANSMISSION]

American Transmission Co LLC (AMRTRN) exp A3/A+ (s/s) US$300m (WNG) 144A/Reg S w no reg rights 30y sr notes due 04/01/56. MWC then 6 mos par call (10/01/55). Use of Proceeds: For general corporate purposes. Such purposes are expected to include, among other things, capital expenditures, the repayment of certain long term debt (including the Company's 4.17% Senior Notes due March 2026 in the principal amount of $75 million and the 4.27% Senior Notes due March 2026 in the principal amount of $75 million) and commercial paper (including approximately $150 million outstanding under the Company's private placement commercial paper program which has a weighted interest rate of 4.14%), working capital, and other corporate purposes. Marketing: https://dealroadshow.com/e/ATC26 ; Passcode: ATC26. Denominations: 2,000 x 1,000. Sale into Canada: Yes - Exemption. Sale into HK or China: No – All Solicitations Prohibited. First pay: 10/01/56. 144A CUSIP: 03028PAF3. Pricing 03/05. Settle 03/16 (T+7).

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

Shadow bk on heels of calls $300mm+.

Announced as $300m (WNG), we heard initial price thoughts as T+135 area.

Went straight to launch at $300m 30y at T+103.

Ultimately, a $300m deal priced as follows

$300m 5.75% 4/1/56 99.642 5.775% T+103. MW+20.

As for r/v, this is the company’s first senior notes since 2014 (it was a $50m deal at the time), so CONCESSION IS N/A. 

Indiana Michigan Power (A2/BBB+/A)
-AEP 5.600% due 03/15/56 T+98bp ($98) - $650M pxd 02/18/26 +92

Consolidated Edison of NY (A3/A-/A-)
-ED 5.750% due 11/15/55 T+99bp ($100) - $900M pxd 11/17/25 +103

Wisconsin Power & Light (Baa1/A-)
-LNT 5.700% due 12/15/55 T+101bp ($100) - $300M pxd 12/02/25 +98

Virginia Electric & Power (A3/BBB+/A)
-D 5.700% due 03/15/56 T+105bp ($98) - $850M pxd 02/24/26 +105

AEP Transmission Co (A2/BBB+/A)
-AEP 5.375% due 06/15/35 T+84bp (G90; $96) - $425M pxd May 2025

FirstEnergy Transmission (Baa2/A-/BBB+)
-FE 4.750% due 01/15/33 T+82bp (G83; $100) - $449.998M exch. Dec 2025

FINAL BOOKS:

$300M 30yr - $2.350bn (7.8x) - PEAK $2.900bn

[M&A TODAY]

Baker Hughes hit the market with $6.5bn to help fund their pending $13.6bn acquisition of Chart Industries. An SMR is also attached to the notes.

jdziwura@creditflowresearch.com

sarah@creditflowresearch.com