Molson Coors Brewing prices $5.3 billion bonds; Anheuser-Busch firms; spreads tighten

By Cristal Cody

Eureka Springs, Ark., June 28 – Molson Coors Brewing Co. priced $5.3 billion of senior notes in four parts on Tuesday with all the bonds tightening in the secondary market as the session closed.

Molson Coors had a book size of about $30 billion for the deal, a source said.

The company sold $500 million of 1.45% notes due July 15, 2019 at 99.95 to yield 1.467% and a spread of 75 bps over Treasuries. The notes were seen in the secondary market at 71 bps bid, 60 bps offered.

The $1 billion tranche of 2.1% notes due July 15, 2021 priced at 99.962 to yield 2.108% and 110 bps over Treasuries. The notes tightened to 106 bps bid, 104 bps offered in aftermarket trading.

Molson Coors sold $2 billion of 3% 10-year notes at 99.845 to yield 3.018% and 155 bps over Treasuries. The issue firmed in secondary trading to 150 bps bid, 147 bps offered.

In the final tranche, the company priced $1.8 billion of 4.2% bonds due July 15, 2046 at 99.357 to yield 4.238% and 195 bps plus Treasuries. They traded at 188 bps bid, 186 bps offered.

Credit spreads recovered some ground over the day. The Markit CDX North American Investment Grade index tightened 6 bps to close at a spread of 85 bps.

Anheuser-Busch InBev Finance Inc.’s 3.65% notes due 2026 headed out 6 bps tighter in the secondary market.

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