AB InBev sells $46 billion of bonds; Goldman Sachs firms; MetLife flat; Visa paper eases

By Aleesia Forni and Cristal Cody

New York, Jan. 13 – Anheuser-Busch InBev Finance Inc. sold a staggering $46 billion of bonds on Wednesday to help fund its planned acquisition of SABMiller.

The deal marks the second-largest bond ever to enter the market, coming in behind Verizon Communications Inc.’s $49 billion jumbo deal that priced in 2013.

Investors poured into the highly anticipated deal. The order book reached more than $109 billion, topping the $101 billion of orders seen for Verizon’s deal.

The solid performance of the deal is expected to set the tone for a host of new merger and acquisition financings expected to enter the market later this year.

Away from the jumbo bond, the primary also hosted new offerings from Sumitomo Mitsui Banking Corp., Nippon Life Insurance Co., Province of Ontario and Japan Bank for International Cooperation.

The Markit CDX North American Investment Grade 25 index opened the session 1 bp tighter at a spread of 98 bps and closed 6 bps weaker at a spread of 104 bps.

In secondary trading on Wednesday, Goldman Sachs Group Inc.’s 4.25% subordinated notes due 2025 tightened 6 bps.

MetLife Inc.’s 3.6% senior notes due 2025 remained mostly unchanged after the company reported after the market closed on Tuesday that it plans to divest a significant portion of its U.S. retail segment.

Visa Inc.’s senior notes (A1/A+) eased 3 bps during the session.

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