Morning Commentary: Crown Castle tightens; Anheuser-Busch firms; credit spreads leak wider

By Cristal Cody

Tupelo, Miss., Jan. 29 – High-grade primary action for the day is expected to include a two-tranche sale of senior notes from Hospitality Properties Trust and an offering of floating-rate senior notes due 2017 from Lloyds Bank plc.

In the secondary market, Crown Castle International Corp.’s 4.45% senior notes due 2026 that priced on Thursday traded 3 basis points tighter.

Anheuser-Busch InBev Finance Inc.’s 3.65% senior notes due 2026 firmed about 5 bps to 6 bps in secondary trading.

The Markit CDX North American Investment Grade 25 index opened 1 bp wider at a spread of 103 bps.

The three-month Libor yield was steady at 62 bps.

Secondary volume climbed to $19.6 billion of high-grade bonds traded on Thursday, up from $17.9 billion of issues traded on Wednesday, according to Trace.

Crown Castle firms

Crown Castle International’s 4.45% notes due 2026 firmed 3 bps in secondary trading to 247 bps offered, according to a market source.

Crown Castle sold $900 million of the 10-year notes (Ba1/BBB-/BBB-) as part of a $1.5 billion total two-tranche offering on Thursday at Treasuries plus 250 bps.

The operator of wireless infrastructures is based in Houston.

Anheuser-Busch stronger

Anheuser-Busch’s 3.65% notes due 2026 traded about 5 bps to 6 bps tighter early Friday at 157 bps offered, a market source said.

The company sold $11 billion of the 10-year notes (A2/A-) on Jan. 13 at Treasuries plus 160 bps.

The brewery is based in Leuven, Belgium.

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