Morning Commentary: Credit spreads soften; AB InBev bonds mostly weaker in secondary market

By Aleesia Forni

New York, Jan. 14 – High-grade credit spreads were leaking wider to open Thursday’s trading day.

The Markit CDX North American Investment Grade 25 index was around 1 bp wider at a spread of 105 bps at mid-morning on Thursday.

Meantime, tranches of Anheuser-Busch InBev Finance Inc.’s $46 billion megadeal that priced on Wednesday were trading mostly wider at mid-morning.

The $4 billion of 1.9% three-year notes that sold at Treasuries plus 85 basis points were around 1 bp wider at 86 bps bid.

A $7.5 billion 2.65% tranche of five-year notes was also 1 bp wider at 212 bps bid after pricing with a spread of Treasuries plus 120 bps.

And the $11 billion of 3.65% 10-year bonds traded 3 bps wider at 163 bps bid. Pricing was at 160 bps over Treasuries.

The $11 billion of 4.9% 30-year bonds was unchanged at 205 bps bid.

BofA Merrill Lynch, Barclays and Deutsche Bank Securities Inc. are bookrunners and global coordinators. MUFG, Santander and Societe Generale are also bookrunners.

Proceeds from what was the second-largest ever bond sale will be used to fund a portion of the purchase price for the acquisition of SABMiller and the remainder for general corporate purposes.

The brewery is based in Leuven, Belgium.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.