Walgreens prints $6 billion of bonds; AT&T tightens; Anheuser-Busch eases; credit spreads flat

By Cristal Cody

Eureka Springs, Ark., May 26 – Walgreens Boots Alliance Inc. priced $6 billion of notes in five tranches on Thursday, bringing the week’s total volume to just over $20 billion, in line with market forecasts.

Primary action is expected to be quiet on Friday with bond markets closing early ahead of the Memorial Day holiday weekend.

In the secondary market, AT&T Inc.’s 4.125% senior notes due 2026 (Baa1//A-) traded 9 bps better on Thursday at 166 bps bid, a market source said.

AT&T is a Dallas-based telecommunications company.

Anheuser Busch InBev Finance Inc.’s 3.65% notes due 2026 headed out about 1 bp weaker in secondary trading at 131 bps bid, a source said.

Earlier in the day, the notes (A3/A-/BBB+) had been quoted 3 bps softer at 130 bps offered.

The company sold $11 billion of the notes on Jan. 13 at a spread of Treasuries plus 160 bps.

Anheuser Busch InBev’s ratings were dropped to A3 from A2 by Moody’s Investors Service on Wednesday due to what the rating agency said would be the significant debt and high leverage the parent company will incur to complete a $106 billion cash and stock acquisition of SABMiller plc.

Fitch downgraded Anheuser Busch’s ratings to BBB+ from A earlier in the month.

The brewery is based in Leuven, Belgium.

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