Opus Bank upsizes; Fannie Mae skips issuance; Anheuser-Busch firms; credit spreads tighten

By Cristal Cody

Eureka Springs, Ark., June 23 – Investment-grade primary and secondary bond market activity remained mostly quiet on Thursday as global financial markets focused on the outcome of the United Kingdom’s vote to remain in or leave the European Union.

Opus Bank brought an upsized $135 million offering of 10-year fixed-to-floating rate subordinated notes in a deal first announced at the start of the week.

Fannie Mae announced on Thursday that it will forgo issuing Benchmark Notes.

The Markit CDX North American Investment Grade index closed about 2 basis points tighter at a spread of 77 bps.

High-grade bonds were mixed in the secondary market.

Anheuser-Busch InBev Finance Inc.’s 3.65% notes due 2026 firmed 4 bps on the day.

Broadridge Financial Solutions, Inc.’s 3.4% senior notes due 2026 that priced on Tuesday were wrapped around issuance earlier in the session.

HSBC Holdings plc’s 2.95% subordinated notes due 2021 improved about 2 bps in secondary trading but remain mostly unchanged from where the bonds priced in May.

Opus Bank upsizes

Opus Bank priced an upsized $135 million of 5.5% 10-year fixed-to-floating rate subordinated notes at par on Thursday, according to a company news release.

The company announced it launched an offering of $100 million of the notes due July 1, 2026 on Monday.

The coupon will reset on July 1, 2021 and thereafter at a floating rate equal to Libor plus 428.5 bps.

Sandler O'Neill + Partners, LP and Keefe, Bruyette & Woods were the bookrunners.

Proceeds will be used for general corporate purposes, which may include supporting Opus’ growth and capital.

Opus is a commercial bank based in Irvine, Calif.

Fannie Mae skips issuance

Fannie Mae announced on Thursday that it will forgo issuing Benchmark Notes.

Fannie Mae said it will not utilize its second Benchmark Notes announcement date this month.

The government-backed mortgage lender is based in Washington, D.C.

Anheuser-Busch tightens

Anheuser-Busch InBev’s 3.65% notes due 2026 firmed 4 bps in the secondary market to head out at 128 bps bid, a source said.

Anheuser-Busch InBev sold $11 billion of the bonds (A3/A-/BBB+) on Jan. 13, 2016 at Treasuries plus 160 bps.

The brewery is based in Leuven, Belgium.

Broadridge unchanged

Broadridge Financial Solutions’ 3.4% senior notes due 2026 traded flat earlier on Thursday at 175 bps offered, a market source said.

The company sold $500 million of the notes (Baa1/BBB+/BBB+) on Tuesday at a spread of 175 bps over Treasuries.

Broadridge Financial is a Lake Success, N.Y.-based producer of goods and services for securities processing, clearing and outsourcing and for investor communications.

HSBC firms

HSBC’s 2.95% notes due 2021 traded about 2 bps tighter early Thursday at 157 bps offered, according to a market source.

The company sold $2.5 billion of the notes (A1/A/AA-) on May 18 at Treasuries plus 160 bps.

London-based HSBC is a banking and financial services group.

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