BB&T prices $850 million floaters; bonds mixed; Anheuser-Busch firms; Duke Energy eases

By Cristal Cody

Eureka Springs, Ark., Dec. 22 – BB&T Corp. brought a surprise $850 million offering of floating-rate notes during Thursday’s session as the lone reported issuer this week in the high-grade primary market.

The company sold the notes due June 15, 2020 at par with a coupon of Libor plus 57 basis points.

Market activity overall continues to be thin with an early market close on Friday and closed bond markets on Monday for the Christmas Day holiday.

The Markit CDX North American Investment Grade index ended the day mostly unchanged at a spread of 66 basis points.

Bonds were mixed in the secondary market.

Anheuser-Busch InBev Finance Inc.’s bonds have been active over the week, with the company’s 3.65% senior notes due 2026 trading about 1 bp tighter on Thursday.

Duke Energy Corp.’s 2.65% senior notes due 2026 softened 2 bps in the secondary market.

Pfizer Inc.’s 3% notes due Dec. 15, 2026 brought in November were quoted earlier in the day trading more than 10 bps better than issuance.

BB&T sells floaters

BB&T sold $850 million of series E senior medium-term floating-rate notes due June 15, 2020 at par to yield Libor plus 57 bps on Thursday, according to an FWP filing with the Securities and Exchange Commission.

BB&T Capital Markets, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC were the bookrunners.

Proceeds will be used for general corporate purposes.

The bank and financial services company is based in Winston-Salem, N.C.

Anheuser-Busch firms

Anheuser-Busch’s 3.65% notes due 2026 firmed about 1 bp in the secondary market to 109 bps bid, a source said.

Anheuser-Busch sold $11 billion of the notes (A2/A-) on Jan. 13 at a spread of 160 bps over Treasuries.

The brewery is based in Leuven, Belgium.

Duke Energy softens

Duke Energy’s 2.65% notes due 2026 eased 2 bps during the session to 104 bps bid, according to a market source.

The company sold $1.5 billion of the 10-year notes (Baa1/BBB+/BBB+) on Aug. 9 at a spread of 115 bps over Treasuries.

The diversified energy company is based in Charlotte, N.C.

Pfizer stronger

Pfizer’s 3% notes due 2026 were seen early Thursday at 71 bps offered in secondary trading, according to a market source.

The company sold $1.75 billion of the 10-year notes (A1/AA/A+) on Nov. 14 at a spread of 85 bps over Treasuries.

The biopharmaceutical company is based in Foster City, Calif.

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