Molson Coors Brewing prices $5.3 billion bonds; Anheuser-Busch firms; credit spreads tighten

By Cristal Cody

Eureka Springs, Ark., June 28 – Molson Coors Brewing Co. priced $5.3 billion of senior notes in four parts on Tuesday with all the bonds tightening in the secondary market as the session closed.

Molson Coors had a book size of about $30 billion for the deal, a source said.

The company’s bonds were quoted trading 4 basis points to 7 bps tighter in the secondary market.

Molson Coors’ subsidiary Molson Coors International LP also sold C$1 billion of senior notes in two tranches on Tuesday.

Credit spreads recovered some ground over the day following the shock of the Brexit results in the previous two sessions. The Markit CDX North American Investment Grade index tightened 6 bps to close at a spread of 85 bps.

Anheuser-Busch InBev Finance Inc.’s 3.65% notes due 2026 headed out 6 bps tighter in the secondary market.

Molson prices $5.3 billion

Molson Coors Brewing priced $5.3 billion of senior notes in four parts on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The company sold $500 million of 1.45% notes due July 15, 2019 at 99.95 to yield 1.467% and a spread of 75 bps over Treasuries.

The notes were seen in the secondary market at 71 bps bid, 60 bps offered.

The $1 billion tranche of 2.1% notes due July 15, 2021 priced at 99.962 to yield 2.108% and 110 bps over Treasuries. The five-year notes tightened to 106 bps bid, 104 bps offered in aftermarket trading.

Molson Coors sold $2 billion of 3% 10-year notes at 99.845 to yield 3.018%. The notes priced with a spread of 155 bps over Treasuries. The issue firmed in secondary trading to 150 bps bid, 147 bps offered.

In the final tranche, the company priced $1.8 billion of 4.2% bonds due July 15, 2046 at 99.357 to yield 4.238% and 195 bps plus Treasuries. The long bonds traded at 188 bps bid, 186 bps offered in the secondary market.

BofA Merrill Lynch, Citigroup Global Markets Inc., UBS Securities LLC, BMO Capital Markets Corp., MUFG, RBC Capital Markets, LLC and Wells Fargo Securities, LLC were the bookrunners.

Molson Coors also planned to offer concurrent euro-denominated senior notes and Canadian dollar-denominated senior notes through its wholly owned indirect subsidiary Molson Coors International.

Proceeds from the deal will be used to partially fund the previously announced acquisition from Anheuser-Busch InBev of SABMiller plc’s interest in MillerCoors LLC and all other assets primarily related to the Miller brand portfolio outside of the United States and Puerto Rico.

Molson Coors is a Denver-based brewing company.

Anheuser-Busch firms

Anheuser-Busch InBev’s 3.65% notes due 2026 firmed 6 bps on the day to 138 bps bid, a market source said.

Anheuser-Busch InBev sold $11 billion of the bonds (A3/A-/BBB+) on Jan. 13 at Treasuries plus 160 bps.

The brewery is based in Leuven, Belgium.

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