Toronto-Dominion Bank 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 in two parts.

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.

And credit spreads were mostly flat to tighter overall on the day.

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

TD Bank two-parter

Toronto-Dominion Bank garnered around $1.8 billion of orders for its new $1.25 billion issue of bonds.

The bank sold fixed- and floating-rate senior medium-term notes, series A, (Aa1/AA-) due Jan. 22, 2019 on Thursday, according to an informed source.

There was $750 million of 1.95% three-year 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 three-year floater priced at par to yield Libor plus 84 bps after being talked at the Libor equivalent to the fixed-rate tranche.

TD Securities, BofA Merrill Lynch, Citigroup Global Markets Inc. and UBS Securities LLC are the bookrunners.

The financial services and banking company is based in Toronto.

AB InBev bonds firm

Anheuser-Busch’s $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.

A $7.5 billion tranche of 2.65% five-year notes firmed 5 bps to 117 bps bid after pricing with a spread of Treasuries plus 120 bps.

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

BofA Merrill Lynch, Barclays and Deutsche Bank Securities Inc. are the bookrunners and global coordinators. MUFG, Santander and Societe Generale are bookrunners.

Proceeds from what was the second-largest ever bond sale will be used to fund a portion of the purchase price for the acquisition of SABMiller and for general corporate purposes.

The brewer is based in Leuven, Belgium.

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