By Cristal Cody
Tupelo, Miss., April 24 – Bacardi Ltd. priced a $2.6 billion offering of guaranteed notes (Ba1/BBB-/BBB-) in four tranches in a Rule 144A and Regulation S transaction on Tuesday, according to a market source.
Bacardi sold $650 million of 4.45% seven-year notes at a spread of Treasuries plus 155 basis points.
The company priced $800 million of 4.7% 10-year notes with a Treasuries plus 175 bps spread.
Bacardi sold $350 million of 5.15% 20-year notes at a 200 bps spread over Treasuries.
In the final tranche, the company sold $700 million of 5.3% 30-year bonds with a Treasuries plus 215 bps spread.
The notes priced on top of guidance.
The deal had a final book size of $5.75 billion.
BofA Merrill Lynch, Barclays and Citigroup Global Markets Inc. were the bookrunners.
The company held fixed income investor calls on Monday.
The notes will be guaranteed by Bacardi’s indirect subsidiaries, Bacardi-Martini BV, Bacardi Corp. and Bacardi U.S.A., Inc.
Bacardi said in a press release that proceeds from the deal will be used primarily to fund the acquisition of about 70% of shares of Patron Spirits International AG that Bacardi does not already own and the redemption of all of Bacardi’s $250 million of 8.2% notes issued March 31, 2009. The remainder of funds will be used for general corporate purposes.
On Friday, Moody’s Investors Service dropped the company’s senior ratings to junk from Baa1 following Bacardi’s receipt of Mexican regulatory approval to acquire the remaining stake in Patron. The deal is valued at about $5.1 billion.
S&P Global Ratings downgraded the company’s rating by two notches to BBB- on Friday.
Bacardi is a privately held spirits company based in Hamilton, Bermuda.
| Issuer: | Bacardi Ltd.
|
| Guarantors: | Bacardi-Martini BV, Bacardi Corp. and Bacardi U.S.A., Inc.
|
| Amount: | $2.6 billion
|
| Description: | Notes
|
| Bookrunners: | BofA Merrill Lynch, Barclays and Citigroup Global Markets Inc.
|
| Trade date: | April 24
|
| Ratings: | Moody’s: Ba1
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | Rule 144A, Regulation S
|
| Marketing: | Fixed income investor calls
|
|
|
| Seven-year notes
|
| Amount: | $750 million
|
| Maturity: | May 15, 2025
|
| Coupon: | 4.45%
|
| Spread: | Treasuries plus 155 bps
|
| Price guidance: | Treasuries plus 155 bps
|
|
|
| 10-year notes
|
| Amount: | $800 million
|
| Maturity: | May 15, 2028
|
| Coupon: | 4.7%
|
| Spread: | Treasuries plus 175 bps
|
| Price guidance: | Treasuries plus 175 bps
|
|
|
| 20-year notes
|
| Amount: | $350 million
|
| Maturity: | May 15, 2038
|
| Coupon: | 5.15%
|
| Spread: | Treasuries plus 215 bps
|
| Price guidance: | Treasuries plus 215 bps
|
|
|
| 30-year notes
|
| Amount: | $700 million
|
| Maturity: | May 15, 2048
|
| Coupon: | 5.3%
|
| Spread: | Treasuries plus 215 bps
|
| Price guidance: | Treasuries plus 215 bps
|
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