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.

The 5.5% 10-year fixed-to-floating rate subordinated notes priced at par on Thursday, according to a company news release. 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.

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.

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