Light high-grade supply forecast for week ahead; Macquarie, Unilever, Anheuser-Busch mixed

By Cristal Cody

Tupelo, Miss., March 23 – Investment-grade primary action stayed quiet on Friday with light supply expected over the upcoming holiday-shortened market week.

About $10 billion to $15 billion of volume is expected for the week ahead, according to syndicate sources.

The bonds markets are scheduled to close early on Thursday and be fully closed on March 30 for the Good Friday holiday.

In the secondary market on Friday, new issues priced over the week were mixed.

Macquarie Group Ltd.’s $1.75 billion of senior notes (A3/BBB/A-) priced in three tranches on Monday were mixed. The company’s floaters improved by more than 10 basis points, while the fixed-rate notes eased about 3 bps.

Unilever Capital Corp.’s $2.1 billion of guaranteed senior notes (A1/A+/A+) priced in four tranches on Monday traded flat to about 1 bp softer.

Anheuser-Busch InBev Worldwide Inc.’s $10 billion of senior notes priced in six tranches on Tuesday were mixed.

The Markit CDX North American Investment Grade 30 index eased about 3 bps during the session to a spread of 69 bps.

Anheuser-Busch mixed

The 3.5% notes due Jan. 12, 2024 that Anheuser-Busch InBev Worldwide (A3/A-) priced on Tuesday improved in the secondary market to 87 bps bid, 85 bps offered, a source said.

The $1.5 billion tranche priced at a 90 bps spread over Treasuries.

Anheuser-Busch’s $2.5 billion of 4% bonds due April 13, 2028, which priced at a 120 bps spread over Treasuries, eased on the bid side to 121 bps bid, 118 bps offered.

The beer brewer is based in Leuven, Belgium.

Macquarie Group’s floating-rate notes due March 27, 2024 tightened to 121 bps bid, 117 bps offered in the secondary market, a source said.

The company sold $550 million of the floaters on Monday at Libor plus 135 bps.

Macquarie’s 4.15% notes due March 27, 2024 softened to 153 bps bid, 150 bps offered.

The notes priced in a $700 million tranche on Monday at a spread of Treasuries plus 150 bps.

Macquarie Group is a Sydney, Australia-based financial services company.

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