Commentary & Deal Flow

Following Amazon’s fourth-largest deal ever yesterday, Salesforce hit the market today with a $25bn eight-part jumbo, tied for the eleventh-largest on record. The back-to-back prints have already lifted weekly issuance above $100bn, securing a top-three week all time with two sessions remaining.

Since Monday was a goose, that also puts the back to back two day total at $107.45bn, crushing the previous high set around the Labor Day supply window in 2024.

While $12bn smaller than Amazon’s offering, Salesforce’s transaction still ranks tied for the third-largest non-M&A deal on record.

The market showed signs of fatigue, with a sharp shift in new issue statistics compared to yesterday, largely driven by Salesforce’s 30.63bp average NIC. Market consensus pointed to a generally weaker tone following the outsized supply seen the prior session. Sentiment was also tempered by Salesforce’s use of proceeds (share buybacks) - typically not a preferred driver for investors - as well as recent underperformance across the software sector. Some investors also characterized the deal as "ambitious," noting that the $25bn issuance represents roughly 13.9% of Salesforce’s ~$180bn market capitalization, a significantly larger proportional offering than Amazon’s $37bn deal, which equates to roughly 1.6% of its market cap.

Away from the jumbo, the market also saw another sizable bank day. After HSBC and SEB combined for $9.6bn last week (3/5), today featured a $6bn two-part offering from Morgan Stanley, alongside additional deals from Wells Fargo, UBS, and BMO. Together, the group brought $12.5bn of bank supply, marking the largest bank issuance day since January 29.

Morgan Stanley’s $6bn two-part transaction also ties its largest two-part deal on record, matching the size of its January 16, 2020 issuance.

Nestle's spreads were notable against other Yankees

NESNVX’s 5y at T+45 ranks as the 4th lowest Yankee spread through 2022:

NESNVX’s 7y at T+55 ranks as the 4th lowest Yankee spread through 2009:

NESNVX’s 10y at T+63 ranks as the 6th lowest Yankee spread through 2009:

Heres today’s Rundown:

[SALESFORCE]

Salesforce Inc (CRM) exp A2/A+ (s/n) US$25bn SEC registered 8-part sr notes (2y FXD due 3/15/28, 3y FXD due 3/15/29, long 5y FXD due 9/15/31, 7y FXD due 3/15/33, 10y FXD due 3/15/36, 20y FXD due 3/15/46, 30y FXD due 3/15/56 and 40y FXD due 3/15/66). MWC then 1mo par call on 2y (2/15/28), 1mo on 3y (2/15/29), 1mo on L5y (8/15/31), 2mos on 7y (1/15/33), 3mos on 10y (12/15/35), 6mos on 20y (9/15/45), 6mos on 30y (9/15/55) and 6mos on 40y (9/15/65). 101 CoC. First Pay: 9/15/26. Denoms: 2,000 x 1,000. Sale into Canada: Yes - Exemption. Sale into Japan: Yes - Exemption. UOP: The Company intends to use all of the net proceeds from the offering of the notes to repurchase shares of their common stock pursuant to one or more accelerated share repurchase agreements that they expect to enter into with one or more of the underwriters or their affiliates and/or one or more other financial institutions substantially concurrently with the pricing of the notes offered hereby, with any remainder to be used for general corporate purposes. Pricing 3/11. Settle 3/13 (T+2).

VIA BofA (B&D on 30y, 40y)/Barc (B&D on 7y, 10y)/Citi (B&D on 3y, L5y)/JPM (B&D on 20y)/WFS (B&D on 2y) joint active books.

Announced with benchmark size, final size came in at $25bn with price progression as follows:

2y - IPT T+100 area; GDNC T+90#; PXD $3.5bn 4.50% 3/15/28 99.920 4.542% T+90. MW+15.
3y - IPT T+110 area; GDNC T+100#; PXD $4.25bn 4.65% 3/15/29 99.978 4.658% T+100. MW+15.
L5y - IPT T+125 area; GDNC T+115#; PXD $3.75bn 4.90% 9/15/31 99.809 4.940% T+115. MW+20.
7y - IPT T+135 area; GDNC T+125#; PXD $2.75bn 5.20% 3/15/33 99.779 4.238% T+125. MW+20.
10y - IPT T+145 area; GDNC T+135#; PXD $4.5bn 5.55% 3/15/36 99.969 5.554% T+135. MW+25.
20y - IPT T+170 area; GDNC T+160#; PXD $1.5bn 6.40% 3/15/46 99.821 6.416% T+160. MW+25.
30y - IPT T+180 area; GDNC T+170#; PXD $3.75bn 6.55% 3/15/56 99.921 6.556% T+170. MW+30.
40y - IPT T+195 area; GDNC T+185#; PXD $1bn 6.70% 3/15/66 99.916 6.706% T+185. MW+30.

As for r/v, outstanding CRM was quoted as follows:
-CRM 3.700% due 04/11/28 T+45bp (G45; $99.33) - $1.5bn pxd Apr 2018
-CRM 1.500% due 07/15/28 T+45bp (G44; $94.38) - $1bn pxd Jun 2021
-CRM 1.950% due 07/15/31 T+74bp (G70; $88.08) - $1.5bn pxd Jun 2021
-CRM 2.700% due 07/15/41 T+155bp (G115; $69.46) - $1.25bn pxd Jun 2021
-CRM 2.900% due 07/15/51 T+119bp ($59.87) - $2bn pxd Jun 2021
-CRM 3.050% due 07/15/61 T+121bp ($56.71) - $1.25bn pxd Jun 2021

After Amazon priced a $37bn deal yesterday (#4 largest deal of all time, #1 non-M&A related) with an all time largest final book ($119bn), along with HONA’s $16bn that put Tuesday as the largest volume day, Salesforce announced marketing yesterday and forged ahead today with a $25bn deal. Order books peaked at $50bn at guidance, and ended at $36.75bn. The deal ended up only moving 10bp from IPT. 

The market consensus was that there was a generally weaker tone in the market following a huge day yesterday, coupled with the use of proceeds (share buyback), and the software as a  sector has suffered quite a lot. Some also called the deal “ambitious,” pointing out to the fact that this $25bn deal would represent ~13.9% of Salesforce’s market cap (roughly $180bn), which weighs differently than AMZN ($37bn is roughly ~1.62%). 

However, once the bonds were freed to trade, secondary performance proved constructive, with spreads tightening roughly 5-11bps across the curve.

As for r/v, most looked at the most traded 51s and curve adjusted:

** 30y - Outstanding Jul 51s T+119bp; plus ~15bp for low $ (30bp away from 90 *0.5) = T+135bp, some added more for low dollar since it is hugely discounted and given the sector, could also argue adding some for the ‘51/’56 curve, so add 5bp call f/v T+140bp. At the T+170bp pricing level, 30Y CONCESSION IS 30BP.

** 20y - Outstanding Jul 41s G115; plus 10bp for low $ gets to T+125bp f/v; similar logic, could add a bit more for low $ and also from ‘41 to ‘46. Call f/v T+130bp. Aldo can curve adjust from 30y T+140bp; minus 10bp 20s/30s curve = T+130bp. At the T+160bp pricing level, 20Y CONCESSION IS 30BP.

** 40y - Outstanding Jul 61s T+121bp; plus 0.5bp per $ from 90 (~17bp) = T+138bp f/v; take 15bp 30s/40s curve at IPT, split in the middle and call ‘61/’66 curve 7bp; new 40y f/v T+145bp. Or 30y f/v T+140bp plus 15bp 30s/40s curve at IPT = T+155bp f/v. Mid-point f/v T+150bp. At the T+185bp pricing level, 40Y CONCESSION IS 35BP.

** 10y - 20y f/v T+130bp; minus 25bp 10s/20s curve to get to T+105bp f/v. At the T+135bp pricing level, 10Y CONCESSION IS 30BP.

** 7y - 10y f/v T+105bp minus 10bp 7s/10s curve = T+95bp f/v. At the T+125bp pricing level, 7Y CONCESSION IS 30BP.

** 5y - 7y f/v T+95bp; minus 10bp L5s/7s curve = T+85bp. At the T+115bp pricing level, L5Y CONCESSION IS 30BP.

** 3y - L5y T+85bp minus 15bp 3s/L5s curve at IPT = T+70bp. At the T+100bp pricing level, 3Y CONCESSION IS 30BP.

** 2y - 3y f/v T+70bp minus 10bp for 2s/3s curve = T+60bp. At the T+90bp pricing level, 2Y CONCESSION IS 30BP.

Comps away:

Alphabet Inc (Aa2/AA+)
-GOOGL 3.700% due 02/15/29 T+25bp (G25; $99.50) - $2.5bn pxd 02/09/26 +27
-GOOGL 4.100% due 02/15/31 T+41bp (G41; $99.70) - $3bn pxd 02/09/26 +43
-GOOGL 4.400% due 02/15/33 T+53bp (G53; $99.50) - $3bn pxd 02/09/26 +53
-GOOGL 4.800% due 02/15/36 T+62bp (G62; $100.00) - $4.25bn pxd 02/09/26 +63
-GOOGL 5.500% due 02/15/46 T+76bp ($99.60) - $1.5bn pxd 02/09/26 +75
-GOOGL 5.650% due 02/15/56 T+83bp ($100.10) - $4bn pxd 02/09/26 +83
-GOOGL 5.750% due 02/15/66 T+98bp ($99.30) - $1.75bn pxd 02/09/26 +95

Cisco Systems Inc (A1/AA-)
-CSCO 4.550% due 02/24/28 T+18bp (G18; $101.40) - $1bn pxd 02/19/25 +30
-CSCO 4.750% due 02/24/30 T+30bp (G36; $102.54) - $1bn pxd 02/19/25 +40
-CSCO 4.950% due 02/24/32 T+60bp (G51; $103.08) - $1bn pxd 02/19/25 +50
-CSCO 5.100% due 02/24/35 T+57bp (G66; $102.59) - $1.25bn pxd 02/19/25 +58
-CSCO 5.500% due 02/24/55 T+84bp ($97.95) - $750M pxd 02/19/25 +75

Adobe Inc (A1/A+)
-ADBE 4.750% due 01/17/28 T+21bp (G22; $101.61) - $800M pxd Jan 2025
-ADBE 4.950% due 01/17/30 T+39bp (G46; $102.82) - $700M pxd Jan 2025
-ADBE 5.300% due 01/17/35 T+64bp (G73; $103.50) - $500M pxd Jan 2025

PepsiCo Inc (A1/A+)
-PEP 4.100% due 01/15/29 T+31bp (G31; $100.40) - $750M pxd 07/21/25 +33
-PEP 4.300% due 07/23/30 T+28bp (G33; $101.00) - $650M pxd 07/21/25 +43
-PEP 4.650% due 07/23/32 T+58bp (G46; $101.70) - $850M pxd 07/21/25 +53
-PEP 5.000% due 07/23/35 T+56bp (G62; $102.00) - $1.25bn pxd 07/21/25 +63

ServiceNow Inc (A2/A)
-NOW 1.400% due 09/01/30 T+67bp (G69; $87.93) - $1.5bn pxd Aug 2020

United Parcel Service (A2/A)
-UPS 4.650% due 10/15/30 T+33bp (G36; $102.30) - $500M pxd 05/12/25 +55
-UPS 5.250% due 05/14/35 T+60bp (G67; $103.50) - $1.25bn pxd 05/12/25 +82
-UPS 5.950% due 05/14/55 T+96bp ($102.50) - $1.25bn pxd 05/12/25 +107
-UPS 6.050% due 05/14/65 T+111bp ($101.90) - $1bn pxd 05/12/25 +117

Intuit Inc (A3/A)
-INTU 5.125% due 09/15/28 T+43bp (G42; $102.53) - $750M pxd Sep 2023
-INTU 5.200% due 09/15/33 T+56bp (G76; $102.91) - $1.25bn pxd Sep 2023
-INTU 5.500% due 09/15/53 T+117bp ($93.64) - $1.25bn pxd Sep 2023

Amazon.com Inc (AA/AA-)
-AMZN 3.850% due 03/13/28 T+28bp (G28; $99.90) - $2.25bn pxd 03/10/26 +30
-AMZN 4.000% due 03/13/29 T+38bp (G38; $100.00) - $3bn pxd 03/10/26 +40
-AMZN 4.250% due 03/13/31 T+52bp (G52; $99.90) - $5bn pxd 03/10/26 +55
-AMZN 4.550% due 03/13/33 T+61bp (G61; $99.90) - $4bn pxd 03/10/26 +65
-AMZN 4.875% due 03/13/36 T+72bp (G72; $99.80) - $6bn pxd 03/10/26 +75
-AMZN 5.650% due 03/13/46 T+92bp ($99.40) - $2.5bn pxd 03/10/26 +95
-AMZN 5.800% due 03/13/56 T+102bp ($99.50) - $5.5bn pxd 03/10/26 +105
-AMZN 5.950% due 03/13/66 T+113bp ($100.10) - $3bn pxd 03/10/26 +118
-AMZN 6.050% due 03/13/76 T+124bp ($99.90) - $3bn pxd 03/10/26 +124

FINAL BOOKS:

$3.5bn 2yr - $5.1bn (1.46x) - PEAK $5.75bn

$4.25bn 3yr - $5.6bn (1.32x) - PEAK $6.65bn

$3.75bn L5yr - $5.2bn (1.39x) - PEAK $6.8bn

$2.75bn 7yr - $4bn (1.45x) - PEAK $6bn

$4.5bn 10yr - $6.7bn (1.49x) - PEAK $9.3bn

$1.5bn 20yr - $2.05bn (1.37x) - PEAK $3.6bn

$3.75bn 30yr - $6.05bn (1.61x) - PEAK $8.15bn

$1bn 40yr - $2.05bn (2.05x) - PEAK $3.75bn

[MORGAN STANLEY]

Morgan Stanley (MS) exp A1/A-/A+ (s/s/s) US$6bn SEC registered 2-part sr notes (6nc5 fixed to float due 3/12/32 and 21nc20 fixed to float due 3/13/47). One-time call dates: 3/12/31 and 3/13/46. MWC then 1mo par call on 6nc5 (2/12/32) and 6mos on 21nc20 (9/13/46). First Pay: 9/12/26 (6nc5), 9/13/26 (21nc20). Denoms: 1,000 x 1,000. Sale into Canada: Yes - Exemption. UOP:  gcp. Pricing 3/11. Settle 3/13 (T+2).  

VIA MS (B&D) sole active books. Active JLM: 6nc5: Cabrera, 21nc20: Ramirez. Passive JLM: 6nc5: Blaylock, SIEWIL, 21nc20: Seelaus, Cabrera. Co-mgrs: 6nc5: Independent Point, Telsey, 21nc20: Academy, Amerivet. 

Announced with benchmark size, we heard initial thoughts as 6nc5: T+110 area, 21nc20: T+125 area.

Guidance came in at 6nc5 T+93#, 21nc20 T+108#.

Ultimately, a $6bn deal priced as follows:

$3.5bn 4.708% 3/12/32 100.00 4.708% T+93. MW+15. Back-end: SOFR+119.5.

$2.5bn 5.90% 3/13/47 100.00 5.90% T+108. MW+20. Back-end: SOFR+178.2.

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

-MS 4.238% due 01/09/30 nc29 T+71bp (G71; $99.729) - $2.5B pxd 01/15/26 +65

-MS 4.493% due 01/16/32 nc31 T+83bp (G84; $99.539) - $3.25B pxd 1/15/26 +75

-MS 5.073% due 01/30/37 nc36 T+99bp (G99; $99.243) - $4B pxd 01/29/26 +85

*** 6nc5: Jan ‘32 nc31 G84, add 1bp for curve gets f/v to T+85bp. At the T+93bp pricing level, 6nc5 CONCESSION IS 8BP.

*** 21nc20: 6nc5 f/v at T+85, add 15bp for IPT curve gets f/v to T+100bp. At the T+108bp pricing level, 21nc20 CONCESSION IS 8BP.

COMPS AWAY:

Goldman Sachs Group (A2/BBB+/A)

-GS 5.065 due 01/21/37 nc36 T+101bp (G102; $98.77) - $4.5bn pxd 01/15/26 +90

-GS 5.541 due 01/21/47 T+103bp (G103; $96.39) - $2.75bn pxd 01/15/26 +80 

FINAL BOOKS:

$3.5bn 6nc5 FTF - $7.3bn (2.09x)

$2.5bn 21nc10 FTF - $6.2bn (2.48x)

[UBS]

UBS AG, acting through its Stamford branch (UBS) exp Aa2/A+/A+ US$3bn 3(a)2 exempt 3-part sr notes (3nc2 fixed to float and/or FRN due 3/16/29 and short 6nc5 fixed to float due 2/16/32). Floating Rate commencement Date: 3nc2: 3/16/28, S6nc5: 2/16/31. Special Redemption: At the Issuer's option, in whole but not in part, on the occurrence of certain tax events, on the terms and subject to the provisions described under "Description of Notes We May Offer – Optional Tax Redemption" in the Offering Circular. Pricing 3/11. Settle 3/16 (T+3). 

VIA UBS (B&D) sole books. 

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

3nc2 FRN - IPT SOFR equiv; GDNC SOFR+81; PXD $500m 3/16/29 FRN at SOFR+81, at 100.

3nc2 FTF - IPT T+95 area; GDNC T+67#; PXD $1.25bn 4.302% 3/16/29 100.00 4.302% T+67. Back-end: SOFR+81.0.

S6nc5 FTF - IPT T+115 area; GDNC T+85#; PXD $1.25bn 4.632% 2/16/32 100.00 4.632% T+85. Back-end: SOFR+111.0.

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

-UBS 5.65% due 9/28 (bullet) T+48bp (G47; $103.60) - $1.5bn pxd SEPT 2023 

More recent Callable Holdcos were the main ones to focus on:

UBS (A2/A-/A)

-UBS 4.214% due 4/30nc29 T+78bp (G77; $99.36) - $2bn pxd 02/05/26 +67 

-UBS 4.588% due 8/32nc31 T+98bp (G94; $99.14) - $1.25bn pxd 02/05/26 +85 

*** 6nc5: Aug ’32 nc31 G94, take away few bp for curve gets 6nc5 holdco f/v at 92bp. Take away 10bp for credit holdco differential gets f/v to T+82bp. At the T+85bp pricing level, 6nc5 CONCESSION IS 3BP.

*** 3nc2: 6nc5 f/v at T+82, take away 20bp for IPT curve gets f/v to T+62bp. At the T+67bp pricing level, 3nc2 CONCESSION IS 5BP.

ABN ARAO (Aa3/A/A+)

-ABNANV 4.197% due 7/28 (bullet) T+55bp (G54; $100.01) - $750m pxd JUN 2025 

-ABNANV 4.197% due 2/31 (bullet) T+66bp (G66; $98.89) - $650m pxd 02/18/26 +55 

Skandiavska (Aa3/AA-/AA)

-SEB 4.00% due 3/29 (bullet) T+48bp (G48; $99.61) - $500m pxd 03/05/26 +48 

-SEB 4.375% due 3/31 (bullet) T+64bp (G64; $99.76) - $600m pxd 03/05/26 +65 

Nationwide Building Society (A1/A+/A+)

-NWIDE 4.351% due 9/30 (bullet) T+70bp (G73; $99.43) - $700m pxd SEPT 2025 

Banco Santander (A1/A+/A+)

-SANTAN 5.439% due 7/31 (bullet) T+79bp (G75; $104.03) - $1.5bn pxd JUL 2024 

Deutshce Bank (A1/A/A)

-DB 4.469% due 12/31nc30 T+87bp (G88; $99.19) - $1bn pxd DEC 2025 

Toronto-Dominion (A2/A-/AA-)

-TD 4.109% due 10/28 (bullet) T+55bp (G54; $99.81) - $1bn pxd OCT 2025

-TD 4.411% due 01/31 (bullet) T+61bp (G62; $100.04) - $900m pxd 01/06/26 +70

Royal Bank of Canada (A1/A/AA-)

-RY 3.995% due 11/28nc27 T+51bp (G52; $99.75) - $750m pxd OCT 2025

-RY 4.498% due 08/29nc28 T+60bp (G59; $100.58) - $1.25bn pxd JUL 2025

-RY 4.305% due 11/31nc30 T+67bp (G69; $99.36) - $1bn pxd OCT 2025

Bank of Nova Scotia (A2/A/AA-)

-BNS 4.247% due 02/30nc29 T+68bp (G68; $99.75) - $1.35bn pxd 01/22/26 +57

-BNS 4.338% due 09/31nc30 T+72bp (G75; $99.31) - $850m pxd SEPT 2025

Canadian Imperial Bank (A2/A-/AA-)

-CM 4.283% due 01/30nc29 T+64bp (G64; $99.96) - $1.6bn pxd 01/21/26 +63

-CM 4.580% due 09/31nc30 T+67bp (G70; $100.51) - $1bn pxd SEPT 2025

Bank of Montreal

-BMO 4.062% due 09/28nc27 T+50bp (G51; $99.88) - $750m pxd SEPT 2025

-BMO 5.004% due 01/29nc28 T+54bp (G54; $101.46) - $750m pxd JAN 2025

-BMO 4.640% due 09/30nc29 T+68bp (G64; $100.97) - $800m pxd SEPT 2024

-BMO 4.439% due 01/32nc31 T+82bp (G83; $99.25) - $1.1bn pxd 01/07/26 +75

FINAL BOOKS:

$500M 3nc2 FRN - $750M (1.50x) - PEAK $970M

$1.25bn 3nc2 FTF - $2.4bn (1.92x) - PEAK $3.15bn

$1.25bn S6nc5 FTF - $2.2bn (1.76x) - PEAK $3.75bn

[WELLS FARGO]

Wells Fargo & Co (WFC),  exp issue ratings Baa2/BB+/BBB/AL (s/p/s/s), US$2.25bn SEC registered $1,000 par fixed rate reset PerpNC5 pfd, Series GG. Dividend: [ ]% from, and including, the date of issuance to, but excluding, June 15, 2031 (the “first reset date”), and the five-year treasury rate as of the most recent reset dividend determination date plus [ ]% for each reset period, from, and including, the first reset date, commencing on June 15, 2031. Payment date: 15th day of each March, June, September and December, commencing on June 15, 2026 (each a “dividend payment date”). Optional Redemption: (I) In whole, or in part, on June 15, 2031, or on any dividend payment date thereafter, at a redemption price equal to $25,000 per share of Series GG Preferred Stock (equivalent to $1,000 per depositary share), plus an amount equal to any declared and unpaid dividends, without accumulation of any undeclared dividends (II) In whole, but not in part, prior to June 15, 2031, upon the occurrence of a “regulatory capital treatment event”. DRD/QDI eligible: Yes. Sale into Canada: Yes - Exemption. UOP:  the company intends to use the net proceeds from the sale of the depositary shares representing interests in the Series GG Preferred Stock for general corporate purposes, including, but not limited to, the redemption of some or all of one or more series of our outstanding preferred stock and related depositary shares, as applicable. Pricing 3/11. Settle 3/18 (T+5). CUSIP: 95002YAE3. ISIN: US95002YAE32. 

VIA WFS (B&D) sole books.

Announced with benchmark size, we heard initial thoughts as 6.50% area.

Guidance came in at 6.125%#.

Ultimately, a $2.25bn deal priced as follows:

$2.25bn, 6.125% at 100. Back-end reset: T+234.0.

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

-WFC 6.850% due PerpNC 09/15/29 $105.00 (G162; YTC 5.28%) - $2bn pxd JUL 2024 +276.7bp

The outstanding was seen as too old to use thus going CONCESSION N/A.

 COMPS AWAY:

Bank of New York (Baa1/BBB/BBB+)

-BK 5.625% due PerpNC 03/20/31 $99.75 (YTC 5.68%) +203.4bp

-BK 5.950% due PerpNC 12/20/30 $101.70 (YTC 5.54%) +227.1bp

Citi (Ba1/BB+/BBB-)

-C 6.500% due PerpNC5 $100.50 (YTC 6.38%) +274.5bp

-C 6.625% due PerpNC 05/15/31 $101.38 (YTC 6.29%) +300.1bp

Bank of America (Baa2/BBB-/BBB+)

-BAC 6.250% due PerpNC 07/26/30 $102.00 (YTC 5.73%) +235.1bp

JP Morgan (Baa1/BBB/BBB+)

-JPM 6.500% due PerpN 04/01/30 $103.38 (YTC 5.56%) +215.2bp

Goldman Sachs (Ba1/BB+/BBB-)

-GS 6.850% due PerpNC 02/10/30 $104.00 (YTC 5.69%) +246.1bp

State Street (Baa1/BBB/BBB+)

-STT 6.450% due PerpNC 09/15/30 $103.30 (YTC 5.62%) +213.5bp

PNC (Baa2/BBB-/BBB)

-PNC 6.200% due PerpNC 09/15/27 $101.30 (YTC 5.30%) +323.8bp

FINAL BOOK:

$2.25bn PerpNC5 - $4.2bn (1.87x) - PEAK $5.9bn

[NESTLE]

Nestle Capital Corp (NESNVX) exp Aa3/AA- (s/n) US$2bn 144A/Reg S no reg rights 3-part sr notes (5y FXD due 3/18/31, 7y FXD due 3/18/33 and 10y FXD due 3/18/36). MWC then 1mo par call on 5y (2/18/31), 2mos on 7y (1/18/33) and 3mos on 10y (12/18/35). Guarantor: Nestle SA. Denoms: 150,000 x 1,000. Sale into Canada: Yes - Exemption. UOP: gcp. Netroadshow: www.netroadshow.com/nrs/home/#!/?show=2d0e1d3a (Recommended) OR visit www.netroadshow.com and enter the entry code: Nestle2026 (not case-sensitive). Pricing 3/11. Settle 3/18 (T+5).

VIA BofA (B&D on 7y)/Citi/HSBC/JPM (B&D on 10y)/RBC (B&D on 5y) joint active books.

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

5y - IPT T+70 area; GDNC T+45#; PXD $750m 4.20% 3/18/31 99.875 4.228% T+45. MW+10.
7y - IPT T+80 area; GDNC T+55#; PXD $500m 4.50% 3/18/33 99.822 4.530% T+55. MW+10.
10y - IPT T+90 area; GDNC T+63#; PXD $750m 4.80% 3/18/36 99.733 4.834% T+63. MW+10. 

As for r/v, outstanding NESNVX capital corp was quoted as follows:
-NESNVX 4.650% due 03/12/29 T+41bp (G38; $101.67) - $600M pxd Mar 2024
-NESNVX 4.875% due 03/12/34 T+38bp (G54; $101.85) - $800M pxd Mar 2024

** Outstanding NESNVS Mar 34s G54; plus 5bp for curve to get to new 10y f/v T+49bp. At the T+63bp pricing level, 10Y CONCESSION IS 4BP.

** 7yr - 10y f/v T+59bp; minus 10bp 7s/10s curve at IPT = T+49bp for 7t. At+55bp pricing level, 7Y CONCESSION IS 6BP.

** 5yr – 7yr f/v T+49bp; minus 10bp 5s/7s curve at IPT for new 5y T+39bp. At+45bp pricing level, 5Y CONCESSION IS 6BP.

NESNVX holdco:
Nestle Holdings Inc (Aa3/AA-)
-NESNVX 5.000% due 09/12/30 T+22bp (G26; $103.92) - $500M pxd Sep 2023
-NESNVX 5.000% due 09/12/33 T+16bp (G36; $103.88) - $500M pxd Sep 2023

Comps away:

PepsiCo Inc (A1/A+)
-PEP 4.100% due 01/15/29 T+34bp (G34; $100.27) - $750M pxd 07/21/25 +33
-PEP 4.600% due 02/07/30 T+30bp (G36; $101.84) - $1bn pxd Feb 2025
-PEP 4.300% due 07/23/30 T+31bp (G35; $100.80) - $650M pxd 07/21/25 +43
-PEP 4.650% due 07/23/32 T+58bp (G45; $101.55) - $850M pxd 07/21/25 +53
-PEP 5.000% due 07/23/35 T+57bp (G62; $101.66) - $1.25bn pxd 07/21/25 +63

Unilever Capital Corp (A1/A+)
-UNANA 4.625% due 08/12/34 T+42bp (G54; $99.89) - $1bn pxd Aug 2024

Procter & Gamble Co (Aa3/AA-)
-PG 4.050% due 05/01/30 T+22bp (G27; $100.17) - $700M pxd 04/28/25 +28
-PG 4.600% due 05/01/35 T+30bp (G36; $100.63) - $550M pxd 04/28/25 +43

L'Oreal SA (Aa1/AA)
-ORFP 5.000% due 05/20/35 T+44bp (G51; $102.53) - $1bn pxd 05/12/25 +62.5

FINAL BOOKS:

$750M 5yr - $1.69bn (2.25x) - PEAK $2.3bn

$500M 7yr - $1.06bn (2.12x) - PEAK $2bn

$750M 10yr - $1.84bn (2.45x) - PEAK $3bn

[WSP GLOBAL]

WSP Global Inc (WSPCN) exp Baa2/BBB (Moody's/Fitch - s/s) US$1.5bn 144A/Reg S for life 2-pt sr notes (L5s due 09/18/31 and L10s due 09/18/36). MWC then 1 mos par call on L5s (08/18/31) and 3 mos on L10s (06/18/36). Denominations: 2,000 x 1,000. Sales into Canada: Yes – via Exemption. Use of Proceeds: The Company expects to use the net proceeds from the sale of the Notes to repay a portion of the advances and drawdowns under the Credit Facilities incurred in connection with the payment of the purchase price in respect of the acquisition of TRC Companies and for general corporate purposes. Electronic Presentation: www.netroadshow.com/event/WSP2026. 144A CUSIP/ISIN: L5s 92938WAG8/ US92938WAG87 and L10s 92938WAH6/ US92938WAH60. Pricing 03/11. Settle 03/18 (T+5).

VIA BNP/JPM(B&D)/Scotia joint active books.

Announced as a benchmark, we heard initial price thoughts as L5s T+145 area, L10s T+170 area.

Guidance came in at L5y T+125#, L10y T+150#.

Ultimately, a $1.5bn deal priced as follows

$650m 5.039% 9/18/31 100.00 5.039% T+125. MW+20.

$850m 5.714% 9/18/36 100.00 5.714% T+150. MW+25.

As for r/v,  this is WSP global’s USD debut. So CONCESSION IS N/A.

Jacobs Solutions Inc (Baa2/BBB-)
-J 4.750% due 03/03/31 T+110bp (G110; $99.50) - $800M pxd 02/24/26 +115
-J 5.375% due 03/03/36 T+139bp (G139; $98.48) - $500M pxd 02/24/26 +135

Quanta Services Inc (Baa3/BBB/BBB)
-PWR 4.500% due 01/15/31 T+72bp (G73; $100.17) - $500M pxd 08/04/25 +80
-PWR 5.100% due 08/09/35 T+88bp (G92; $100.42) - $500M pxd 08/04/25 +93

Roper Technologies Inc (Baa2/BBB+)
-ROP 4.450% due 09/15/30 T+82bp (G85; $99.56) - $500M pxd 08/07/25 +70
-ROP 5.100% due 09/15/35 T+107bp (G110; $99.02) - $1bn pxd 08/07/25 +90

FINAL BOOKS:

$650M L5yr - $1.1bn (1.69x) - PEAK $1.6bn

$850M L10yr - $1.4bn (1.65x) - PEAK $1.9bn

[BANK OF MONTREAL]

Bank of Montreal (BMO) exp A2/A-/AA- US$1.25bn SEC registered 2-pt sr notes (4nc3 fixed to floating and FRN due 03/19/30). One-time call date 03/19/29 on both. MWC then 1mos par call on the fixed (02/19/30). 1 mos par call on FRN (02/19/30).  Use of Proceeds: General Corporate Purposes. Denominations: 2,000 x 1,000. Sale into Canada: Yes - Exemption. First pay: 09/19/26 for fixed and 06/19/26 for FRN. Pricing 03/11. Settle 03/19 (T+6). 

VIA BMO(B&D)/GS/JPM/MS/NATIX/Sant joint active books. 

Announced with benchmark size, we heard initial thoughts as 4nc3 T+100 area and SOFR equivalent. 

Guidance came in at 4nc3 FTF T+70#, 4nc3 FRN SOFR equiv (currently ~SOFR+89, will set at launch). FRN tranche dropped at launched

Ultimately, a $1.25bn deal priced as follows:

$1.25bn 4.338% 3/19/30 100.00 4.338% T+70. MW+15. Back-end: SOFR+89.

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

-BMO 4.062% due 09/28nc27 T+50bp (G51; $99.88) - $750m pxd SEPT 2025

-BMO 5.004% due 01/29nc28 T+54bp (G54; $101.46) - $750m pxd JAN 2025

-BMO 4.640% due 09/30nc29 T+68bp (G64; $100.97) - $800m pxd SEPT 2024

-BMO 4.439% due 01/32nc31 T+82bp (G83; $99.25) - $1.1bn pxd 01/07/26 +75

*** Working off most recent Jan ‘32 nc31 G83, Take away 15bp for 6nc5 / 4nc3 curve gets f/v to T+68bp. At the T+70bp pricing level, CONCESSION IS 2BP.

BNS that recently priced a 4nc3 was also seen as a relevant comp that pointed to a similar spot:

Bank of Nova Scotia (A2/A/AA-)

-BNS 4.247% due 02/30nc29 T+68bp (G68; $99.75) - $1.35bn pxd 01/22/26 +57

-BNS 4.338% due 09/31nc30 T+72bp (G75; $99.31) - $850m pxd SEPT 2025

*** Feb ‘30 nc29 call f/v at T+68bp. At the T+70bp pricing level, CONCESSION IS 2BP.

COMPS AWAY:

Toronto-Dominion (A2/A-/AA-)

-TD 4.109% due 10/28 (bullet) T+55bp (G54; $99.81) - $1bn pxd OCT 2025

-TD 4.411% due 01/31 (bullet) T+61bp (G62; $100.04) - $900m pxd 01/06/26 +70

Royal Bank of Canada (A1/A/AA-)

-RY 3.995% due 11/28nc27 T+51bp (G52; $99.75) - $750m pxd OCT 2025

-RY 4.498% due 08/29nc28 T+60bp (G59; $100.58) - $1.25bn pxd JUL 2025

-RY 4.305% due 11/31nc30 T+67bp (G69; $99.36) - $1bn pxd OCT 2025

Canadian Imperial Bank (A2/A-/AA-)

-CM 4.283% due 01/30nc29 T+64bp (G64; $99.96) - $1.6bn pxd 01/21/26 +63

-CM 4.580% due 09/31nc30 T+67bp (G70; $100.51) - $1bn pxd SEPT 2025

FINAL BOOK:

$1.25bn 4nc3 FTF - $2.3bn (1.84x) - PEAK $3.43bn

[BROOKLYN UNION GAS]

The Brooklyn Union Gas Co (NGGLN) exp Baa2/BBB+/BBB+ (p/s/s) US$700m 144A/Reg S no reg rights 2-part sr notes (new 10y FXD due 3/16/36 and tap of NGGLN 6.415% 7/18/54s - $450m outstanding). MWC (+30 on tap) then 3mos par call on 10y (12/16/35) and 6mos on 2054 tap (1/18/54). Denoms: 2,000 x 1,000. Governing Law: New York. Sale into Canada: Yes - Exemption. UOP: gcp. Pricing 3/11. Settle 3/16 (T+3).

VIA BNP/Citi/Miz (B&D)/MS/Sant joint active books.

Announced as a benchmark, we heard initial price thoughts as 10y T+145 area, 2054 tap T+162.5 area.

Guidance came in at 10y T+125#, 2054 tap T+145#.

Ultimately, a $700m deal priced as follows

$500m 5.456% 3/16/36 100.00 5.456% T+125. MW+10.

$200m tap of 6.415% 7/18/54 at 101.358 6.310% T+145. MW+30. Total outstanding now $650m.

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

-NGGLN 3.865% due 03/04/29 T+70bp (G70; $98.68) - $550M pxd Feb 2019
-NGGLN 4.866% due 08/05/32 T+119bp (G105; $99.49) - $400M pxd Aug 2022
-NGGLN 6.388% due 09/15/33 T+96bp (G116; $107.41) - $550M pxd Sep 2023
-NGGLN 6.415% due 07/18/54 T+131bp ($103.54) - $450M pxd Jul 2024

** Outstanding NGGLN Jul 54s T+131. At the T+145bp pricing level, TAP CONCESSION IS 14BP.

** Jul 54s T+131 minus 17.5bp 10s/30s curve at IPT = T+113.5bp f/v. At the T+125bp pricing level, 10Y CONCESSION IS 11.5BP.

Though some noted that the 54s traded wider intraday to T+136bp, calling nics 9bp on the tap and 6.5bp on the 10yr. 

Other NGGLN comps:

Niagara Mohawk Power (Baa1/BBB+)
-NGGLN 5.112% due 01/12/36 T+100bp (G101; $99.38) - $650M pxd 01/07/26 +97
-NGGLN 5.996% due 07/03/55 T+117bp ($99.85) - $1.1bn pxd 06/30/25 +120

Boston Gas Company (Baa1/BBB+)
-NGGLN 5.843% due 01/10/35 T+84bp (G94; $105.59) - $500M pxd Jan 2025

Massachusetts Electric (Baa1/BBB+)
-NGGLN 5.867% due 02/26/54 T+109bp ($99.25) - $400M pxd Feb 2024

New England Power Co (A3/BBB+/A-)
-NGGLN 5.848% due 09/08/55 T+122bp ($97.15) - $350M pxd 09/03/25 +95

National Grid PLC (Baa2/BBB/BBB)
-NGGLN 5.809% due 06/12/33 T+72bp (G95; $105.25) - $800M pxd Jun 2023
-NGGLN 5.418% due 01/11/34 T+78bp (G96; $102.80) - $750M pxd Jan 2024

FINAL BOOKS:

$500M 10yr - $1bn (2.00x) - PEAK $1.6bn

$200M 2054 Tap - $500M (2.50x) - PEAK $850M

[M&A TODAY]

WSP Global hit the market with $1.5bn to repay part of their term loan used in association with their acquisition of TRC Companies. WSP announced a $3.3bn (CAD 4.5bn) acquisition of TRC Companies on 12/16/25 which then later closed on 2/24/26. They obtained a $3.3bn term loan to help fund the purchase price at announcement and later raised CAD 732m through equity offerings and another CAD $118m through private placement offerings which reduced their term loan by such amount. WSP also issued a CAD 1bn deal in January 2026 to go towards the acquisition. 

Cintas Corp "CTAS" (A3/A-) entered an agreement to UniFirst Corp "UNF" for $310 per share in a cash and stock transaction representing an enterprise value of $5.5bn.

The transaction consists of $155.00 per share in cash and 0.7720 in CTAS shares at a price of $200.77 per UNF share.

Cintas plans on funding the cash portion of the transaction with cash on hand and new debt in which they obtained a $2.85bn bridge facility with MS, Key, and WFS.

The transaction is expected to close by Q4 2026.

Morgan Stanley is the financial advisor with Davis Polk & Wardwell LLP providing legal counsel to Cintas.

Goldman Sachs and JP Morgan is the financial advisor with Paul Hastings LLP providing legal counsel to UniFirst.

[NEW MANDATES & MARKETING]

–Airbnb, Inc. (“Airbnb”, “the Company”) (Ticker: ABNB) (Country: US) has asked BofA Securities, Goldman Sachs & Co. LLC, and Morgan Stanley to arrange two fixed income investor calls that will be held today.

An electronic investor presentation has been made available. Goldman Sachs & Co. LLC is coordinating logistics.

The Company Will be Represented by:

• Ellie Mertz – Chief Financial Officer

• Brian Moore – Vice President, Treasurer

• Andrew Slabin – Vice President, Investor Relations

Investor Call Schedule: Wednesday, March 11th

• 12:00-12:45pm ET (https://evercall.co/oacc/81473)

• 1:00-1:45pm ET (https://evercall.co/oacc/15525)

Electronic Investor Presentation:

Direct Link: https://dealroadshow.com/e/ABNB2026

URL: https://dealroadshow.com

Entry Code: ABNB2026

About Airbnb:

Airbnb was founded in 2007 when two hosts welcomed three guests to their San Francisco home, and has since grown into a global community of over 5 million hosts who have welcomed over 2.5 billion guest arrivals in almost every country and region across the globe. Every day, hosts offer unique stays, experiences, and services that enable guests to connect with communities in a more authentic way. Airbnb operates a global marketplace connecting guests with stays, experiences, and services, collectively in over 220 countries and regions. Airbnb’s offerings have expanded to include services and redesigned experiences, which launched in May 2025.