By Andrea Heisinger
New York, Oct. 5 - Darden Restaurants, Inc. sold an upsized $400 million of 4.5% 10-year senior notes on Wednesday at a spread of Treasuries plus 265 basis points, an informed source said.
The deal size was increased from $350 million.
The notes (Baa2/BBB/BBB) were priced at 99.601 to yield 4.55%.
The securities have a make-whole call at Treasuries plus 40 bps and feature a change-of-control put at 101%.
Active bookrunners were Bank of America Merrill Lynch and Wells Fargo Securities LLC. Passive bookrunners were SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments Inc.
Co-managers were Comerica Securities Inc., Deutsche Bank Securities Inc., Fifth Third Securities Inc., Goldman Sachs & Co., Loop Capital Markets Inc., Mizuho Securities USA Inc. and Williams Capital Group LP.
Proceeds are being used for general corporate purposes, including short-term debt repayment.
Darden last priced bonds in a $1.15 billion deal in three tranches on Oct. 10, 2007. The 6.2% 10-year notes from that sale were priced at 158 bps over Treasuries.
The restaurant chain operator is based in Orlando.
| Issuer: | Darden Restaurants, Inc.
|
| Issue: | Senior notes
|
| Amount: | $400 million, upsized from $350 million
|
| Maturity: | Oct. 15, 2021
|
| Bookrunners: | Bank of America Merrill Lynch, Wells Fargo Securities LLC (active), SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments Inc. (passive)
|
| Co-managers: | Comerica Securities Inc., Deutsche Bank Securities Inc., Fifth Third Securities Inc., Goldman Sachs & Co., Loop Capital Markets Inc., Mizuho Securities USA Inc., Williams Capital Group LP
|
| Coupon: | 4.5%
|
| Price: | 99.601
|
| Yield: | 4.55%
|
| Spread: | Treasuries plus 265 bps
|
| Call: | Make-whole at Treasuries plus 40 bps
|
| Change-of-control put: | 101%
|
| Trade date: | Oct. 5
|
| Settlement date: | Oct. 11
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
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