By Cristal Cody
Tupelo, Miss., March 26 – Allstate Corp. sold $500 million of floating-rate senior notes (A3/A-) in two parts on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company priced $250 million of three-year floaters at par to yield Libor plus 43 basis points.
Allstate sold $250 million of five-year floaters at par to yield Libor plus 63 bps.
Both tranches priced on the tight side of guidance.
BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used for general corporate purposes, including potentially repaying at maturity the company’s 6.75% senior debentures due May 15, 2018 and other debt repayment.
The company also priced $500 million of $25-par series G noncumulative perpetual preferred stock with a 5.625% dividend rate on Monday.
Allstate is a Northbrook, Ill.-based insurance company.
| Issuer: | Allstate Corp.
|
| Amount: | $500 million
|
| Description: | Floating-rate senior notes
|
| Bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC
|
| Co-managers: | Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and UBS Securities LLC
|
| Trade date: | March 26
|
| Settlement date: | March 29
|
| Ratings: | Moody’s: A3
|
| S&P: A-
|
| Distribution: | SEC registered
|
|
|
| Three-year floaters
|
| Amount: | $250 million
|
| Maturity: | March 29, 2021
|
| Coupon: | Libor plus 43 bps
|
| Price: | Par
|
| Yield: | Libor plus 43 bps
|
| Call feature: | None
|
| Price talk: | Libor plus 45 bps area
|
|
|
| Five-year floaters
|
| Amount: | $250 million
|
| Maturity: | March 29, 2023
|
| Coupon: | Libor plus 63 bps
|
| Price: | Par
|
| Yield: | Libor plus 63 bps
|
| Call feature: | None
|
| Price talk: | Libor plus 65 bps area
|
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