Morning Commentary: Primary action set; Molson Coors modestly better; Anheuser-Busch tightens

By Cristal Cody

Eureka Springs, Ark., June 29 – Several high-grade issuers are set to price new bonds on Wednesday following Molson Coors Brewing Co.’s $5.3 billion four-part offering of senior notes in the previous session.

Oracle Corp., Express Scripts Holding Co. and General Motors Financial Co., Inc. are among the companies in the day’s deal pipeline.

Molson-Coors’ notes, which were priced to partially fund its acquisition from Anheuser-Busch InBev SA/NV of SABMiller plc’s interest in MillerCoors LLC and assets mostly related to the Miller brand portfolio outside of the United States and Puerto Rico, remained modestly tighter in secondary trading.

Anheuser-Busch InBev Finance Inc.’s 3.65% notes due 2026, which headed out 6 basis points tighter on Tuesday, were quoted another 11 bps tighter early Wednesday.

The Markit CDX North American Investment Grade index improved 2 bps at the start of the day to a spread of 83 bps.

Investment-grade secondary trading volume climbed to $16,663,000,000 of issues on Tuesday from $12,695,000,000 on Monday, according to Trace.

Molson Coors trades

Molson Coors’ 3% notes due 2026 traded modestly tighter at 148 bps offered, a market source said.

The notes traded late afternoon on Tuesday at 150 bps bid, 147 bps offered.

Molson Coors sold $2 billion of the 10-year notes at a spread of 155 bps over Treasuries on Tuesday.

The brewing company is based in Denver.

Anheuser-Busch firms

Anheuser-Busch InBev’s 3.65% notes due 2026 were quoted 11 bps tighter at 130 bps offered, according to a market source.

The 10-year notes headed out on Tuesday 6 bps tighter at 138 bps bid.

Anheuser-Busch InBev sold $11 billion of the bonds (A3/A-/BBB+) on Jan. 13, 2016 at 160 bps over Treasuries.

The brewery is based in Leuven, Belgium.

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