Toronto-Dominion brings day’s sole deal; AB InBev megadeal tightens in secondary market

By Aleesia Forni

New York, Jan. 14 – Toronto-Dominion Bank was the only investment-grade issuer to enter Thursday’s primary market, selling $1.25 billion of three-year notes (Aa1/AA-) in two parts.

The deals garnered around $1.8 billion of orders.

There was $750 million of 1.95% notes at 99.913 to yield 1.98%, or Treasuries plus 85 bps.

The notes sold on top of guidance, which tightened from talk in the range of Treasuries plus 90 bps to 95 bps

A $500 million floater priced at par to yield Libor plus 84 bps after being talked at the Libor equivalent to the fixed-rate tranche.

The day’s lone deal pushed the week’s total high-grade new issuance to a staggering $66.4 billion.

Elsewhere, primary activity was subdued on Thursday as the market digested the jumbo $46 billion bond deal priced by Anheuser-Busch InBev Finance Inc. on Wednesday.

Tranches of the megadeal made up earlier losses to trade mostly tighter later during the session.

The $4 billion of 1.9% three-year notes that sold at Treasuries plus 85 bps on Wednesday were around 3 bps tighter at 84 bps bid later during the session Thursday.

The $11 billion of 3.65% 10-year bonds traded flat at 162 bps bid. Pricing was at 160 bps over Treasuries.

Credit spreads were mostly flat to tighter overall on the day.

The Markit CDX North American Investment Grade 25 index was around 2 bps tighter at a spread of 103 bps.

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