Anheuser-Busch, American Honda, CenterPoint price; Danske Bank readies deal; utilities firm

By Cristal Cody

Tupelo, Miss., Jan. 10 – Anheuser-Busch InBev Worldwide Inc. brought $15.5 billion of fixed-rate notes in six tranches to the primary market on the tight side of guidance on Thursday.

In addition, American Honda Finance Corp. priced $1.6 billion of medium-term notes in three tranches.

CenterPoint Energy Houston Electric, LLC sold $700 million of 30-year general mortgage bonds.

A deal from Washington Gas Light Co. announced on Thursday remains in the pipeline.

Meanwhile, a two-part offering from Danske Bank A/S that was postponed on Wednesday is expected to come on Friday.

In other activity, the FHLBank System announced it would not issue or reopen a Global Note on Thursday. The next funding opportunity is scheduled for Jan. 23.

High-grade issuers have priced about $37 billion of corporate bonds this week to date, beating market forecasts of about $25 billion to $30 billion of supply.

For the week ended Jan. 9, Lipper US Fund Flows reported that corporate investment-grade funds had outflows of $1.14 billion.

The Markit CDX North American Investment Grade 31 index firmed about 1 basis point to end the day at a spread of 78 bps.

In the secondary market, Anheuser-Busch’s existing 4% senior notes due April 13, 2028 (Baa1/A-) tightened 8 bps to 172 bps bid by the afternoon, a market source said. The notes headed out on Wednesday about 1 bp softer.

The bonds priced in a $2.5 billion tranche on March 20, 2018 at 99.216 to yield 4.096%, or a spread of 120 bps over Treasuries.

Bonds in the energy sector, including new issues, are trading mostly better, according to market sources.

MidAmerican Energy Co.’s $1.5 billion of green first mortgage bonds (Aa2/A+/) priced in two tranches on Monday have tightened about 1 bp to 7 bps, one source said.

Metropolitan Edison Co.’s $500 million of 4.3% senior notes due Jan. 15, 2029 (A3/BBB/BBB+) that came on Monday improved to the 154 bps area in the secondary market.

The Akron, Ohio-based electric utility and subsidiary of FirstEnergy Corp. sold the 10-year notes at a spread of Treasuries plus 163 bps.

Pacific Gas & Electric Co.’s senior notes (Ba3/BB-/BBB-) improved Thursday, although the company was downgraded to junk by Moody’s Investors Service, a move that followed S&P Global Ratings’ downgrade of the issuer on Monday.

The downgrades come on potential liability concerns in connection with the deadly and destructive California Camp Fire.

In other utility issues trading, Southwestern Electric Power Co.’s 4.1% senior notes due Sept. 15, 2028 tightened 4 bps during the session.

Anheuser-Busch InBev prices

Anheuser-Busch InBev Worldwide priced a $15.5 billion six-tranche offering of guaranteed fixed-rate notes (Baa1/A-/) on Thursday, according to a market source.

The company sold $2.5 billion of 4.15% six-year notes at a spread of Treasuries plus 160 bps.

A $4.25 billion offering of 4.75% 10-year notes were placed at a Treasuries plus 205 bps spread.

The company sold $750 million of 4.9% 12-year notes with a spread of 220 bps over Treasuries.

A $2 billion tranche of 5.45% 20-year notes priced at a Treasuries plus 240 bps spread.

Anheuser-Busch sold $4 billion of 5.55% 30-year notes with a spread of 250 bps over Treasuries.

In the final tranche, $2 billion of 5.8% 40-year notes priced at a Treasuries plus 275 bps spread.

BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC were the bookrunners.

Anheuser-Busch InBev Worldwide is a subsidiary of Leuven, Belgium-based beer brewer Anheuser-Busch InBev NV/SA.

American Honda in primary

American Honda Finance priced $1.6 billion of medium-term notes (A2/A+/) in three tranches on Thursday, according to a market source.

The company sold $400 million of floating-rate notes due Jan. 8, 2021 at Libor plus 47 bps.

A $500 million tranche of 3.15% two-year fixed-rate notes priced at a spread of Treasuries plus 62 bps.

Also, $700 million of 3.55% five-year notes came at a Treasuries plus 100 bps spread.

Citigroup, Mizuho Securities USA LLC, SMBC Nikko Securities America Inc. and Wells Fargo Securities LLC were the bookrunners.

American Honda Finance is a Torrance, Calif.-based financing arm of American Honda Motor Co.

CenterPoint Energy prices

CenterPoint Energy Houston Electric sold $700 million of 4.25% 30-year general mortgage bonds at a spread of 122 bps over Treasuries, according to an FWP filing with the Securities and Exchange Commission on Thursday.

The bonds (A1/A/A+) priced at 99.393 to yield 4.286%.

Mizuho, PNC Capital Markets LLC, Regions Securities LLC, TD Securities (USA) LLC and U.S. Bancorp Investments Inc. were the bookrunners.

CenterPoint Energy is a Houston-based electricity transmitter and distributor.

Danske Bank looks to Friday

Danske Bank plans to tap the high-grade primary market on Friday with a two-part offering of senior notes (Baa2/A/A), according to an informed source.

The deal was expected to price on Wednesday but was postponed. The offering includes notes due Jan. 12, 2022 that were initially talked to price in the Treasuries plus 280 bps area with guidance later tightened to Treasuries plus 255 bps.

Notes due Jan. 12, 2024 were guided at Treasuries plus 285 bps from initial talk in the Treasuries plus 310 bps area.

BofA Merrill Lynch, Barclays, Danske Markets Inc., Goldman Sachs & Co. LLC, JPMorgan and UBS Securities LLC are the lead managers.

Danske Bank launched a roadshow and fixed income investor calls for the Rule 144A and Regulation S offering in the U.S. and European markets on Monday.

The deal was postponed on Wednesday following news reports of additional information regarding money laundering charges against the company.

The bank is based in Copenhagen.

PG&E improves

Pacific Gas & Electric’s 4.25% notes due Aug. 6, 2023 traded on Thursday at 86.25 bid, compared to 85 bid in the previous session, a market source said.

The company sold $500 million of the notes on Aug. 2 at 99.76 to yield 4.3% and a spread of 145 bps over Treasuries.

Pacific Gas & Electric’s 4.65% notes due Aug. 6, 2028 improved to 84.5 bid from the 81.4 bid area on Wednesday.

The 10-year notes priced in a $300 million tranche in the Aug. 2 offering at 99.72 to yield 4.69% and a Treasuries plus 170 bps spread.

The electric and natural gas utility is based in San Francisco.

Southwestern Electric firms

Southwestern Electric Power’s 4.1% senior notes due Sept. 15, 2028 firmed about 4 bps on the day to 137 bps bid, according to a market source.

The company sold $575 million of the notes (Baa2/A-/) on Sept. 11 at par to yield a spread of 112.5 bps over Treasuries.

Southwestern Electric Power is a Columbus, Ohio-based electric power company.

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