Anheuser-Busch, XTO Energy, Union Pacific price new issues on otherwise quiet day

By Andrea Heisinger

Omaha, Aug. 21 - New issues from Anheuser-Busch Companies Inc., XTO Energy Inc. and Union Pacific Corp. priced Tuesday, although one market source called it a quiet day for investment-grade trading.

XTO had the big issue for the day, with $1 billion of senior notes in three tranches.

A $250 million tranche of 5.9% five-year notes priced at 101.450 with a spread of Treasuries plus 130 basis points and yield of 5.558%.

The $300 million in 6.25% 10-year notes priced 101.482 with a spread of Treasuries plus 145 bps and yield of 6.048%.

The $450 million in 6.75% 30-year notes priced at 100.179 with a spread of Treasuries plus 178 bps and yield of 6.735%.

Anheuser-Busch's $500 million issue of 6.45%30-year debentures was reportedly upsized from $350 million. The notes priced at 99.656 with a spread of 153 bps and yield of 6.476%.

Union Pacific priced $500 million in 5.45% notes at a spread of Treasuries plus 123 bps with a yield of 5.484%. The price was 99.846.

Final terms were also put out for Bank of America Corp.'s $1.5 billion in 6% 10-year senior notes that priced at 99.775.

"It was a calm day all around in stocks and credit," one trader said.

Although market conditions are better, there's still room for improvement, the source cautioned.

"There's more stability, but it's not completely stable yet."

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