High Grade Basic Materials Weekly

Research evidence excerpt

High Grade Basic Materials Weekly

Accessible version

Week ended June 26, 2026

Industry Overview

HG Basic Materials spreads finished 2 bps wider w-o-w 26 June 2026

HG Basic Materials spreads finished 2 bps wider w-o-w, performing in-line with the Corp High Grade Credit

Index (+2 bps w-o-w, OAS basis). All subsectors performed roughly in line outside of North America

Paper & Packaging (+4 bps), which slightly underperformed. In Chemicals, we highlight Basic Materials

DOW Inc (DOW) and LyondellBasell (LYB), who both underperformed and widened ~10

bps across the curve.

HG Basic Materials underperformed the Corp Index

HG Basic Materials (-20 bps of excess returns) underperformed the Corp Index (-12 bps)

w-o-w. All subsectors underperformed, outside of Construction / Building Materials (-8

bps). Metals (-24 bps) and Chemicals (-21 bps) were the largest underperformers, while Daniel Lungo Research Analyst

Paper & Packaging (-14 bps) finished closer to in-line. BofAS

daniel.e.lungo@bofa.com

CRHID to acquire ACA for $8.5b; IFF enters $1b term loan PeterResearchMerliniAnalyst

On Monday, CRH Plc (CRHID) announced an agreement to acquire Arcosa Inc. (ACA) in an BofAS

all-cash transaction for $150/share, valuing the company at ~$8.5b. Management peter.merlini@bofa.com

expects the transaction to close by the end of 1Q27. The deal is expected to be funded GavinResearchAndersenAnalyst

through cash on hand (~$3.2b at 1Q26 for legacy CRHID) and committed debt financing. BofAS

gavin.andersen@bofa.com

Notably, CRHID entered a $5.75b bridge term loan facility, which is expected to be

replaced with alternative financing prior to the closing of the merger. Management

expects FY26E pro forma net leverage of 2.4x. CRHID expects net leverage to improve

Exhibit 1: WTD Excess Returns (bps)