Investment-grade primary action mostly quiet; Anheuser-Busch, AT&T ease; credit spreads widen

By Cristal Cody

Eureka Springs, Ark., June 10 – Investment-grade primary action mostly took a break on Friday following more than $25 billion of new bonds priced over the week.

Volume is expected to be lower in the week ahead with about $20 billion of issuance forecast, a source said.

Peapack-Gladstone Financial Corp. priced $50 million of 10-year fixed-to-floating-rate subordinated notes during the session.

In the secondary market, Anheuser-Busch InBev Finance Inc.’s 3.65% notes due 2026 widened 4 basis points.

AT&T Inc.’s 4.125% senior notes due 2026 traded about 1 bp weaker on Friday.

Wells Fargo & Co.’s new 4.4% subordinated notes due 2046 were quoted trading about 2 bps weaker than issuance earlier in the day.

The Markit CDX North American Investment Grade index closed the day 4 bps weaker at a spread of 79 bps.

Peapack-Gladstone prices

Peapack-Gladstone Financial sold $50 million of 6% 10-year fixed-to-floating-rate subordinated notes at par, according to an FWP filing on Friday with the Securities and Exchange Commission.

The interest rate resets June 30, 2021 at Libor plus 485 bps.

Sandler O’Neill + Partners, LP was the bookrunner.

Proceeds will be used for general corporate purposes, potential strategic acquisitions and investments in the bank as regulatory capital to fund growth.

Peapack-Gladstone Financial is the holding company for Peapack-Gladstone Bank, which is based in Bedminster, N.J.

Anheuser-Busch softens

Anheuser-Busch InBev’s 3.65% notes due 2026 eased 4 bps on Friday to 135 bps bid, a market source said.

The Leuven, Belgium-based brewer sold $11 billion of the bonds (A3/A-/BBB+) on Jan. 13 at Treasuries plus 160 bps.

AT&T eases

AT&T’s 4.125% notes due 2026 (Baa1//A-) softened about 1 bp on the day to 174 bps bid, a market source said.

AT&T priced a $900 million add-on to the bonds on May 3 at Treasuries plus 150 bps.

The notes originally were priced on Jan. 29 in a $1.5 billion tranche at 195 bps over Treasuries.

AT&T is a Dallas-based telecommunications company.

Wells Fargo eases

Wells Fargo’s 4.4% notes due 2046 were seen over the morning trading at 190 bps offered, according to a market source.

Wells Fargo sold $2 billion of the notes on Tuesday at a spread of 188 bps over Treasuries.

The financial services company is based in San Francisco.

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