Published on 10/1/2012 in the Prospect News Investment Grade Daily.
New Issue: Darden taps market for $450 million 3.35% 10-year notes at Treasuries plus 175 bps
By Andrea Heisinger
New York, Oct. 1 - Darden Restaurants, Inc. sold an upsized $450 million of 3.35% 10-year senior notes on Monday to yield 175 basis points over Treasuries, a source away from the trade said.
The notes were sold tighter than guidance in the 200 bps area. The size of the offering was upsized from $300 million.
The bonds (Baa2/BBB/BBB) were priced at 99.828 to yield 3.37%.
There is a make-whole call at Treasuries plus 30 bps until Aug. 1, 2022, with a par call after that date. The notes feature a change-of-control put at 101%.
Bank of America Merrill Lynch, SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments Inc. were the active bookrunners. Fifth Third Securities Inc. and Wells Fargo Securities LLC were passive bookrunners.
Proceeds will be used for general corporate purposes, including repayment of 5.625% notes due in October and to repay short-term debt.
The full service restaurant owner and operator is based in Orlando.
| Issuer: | Darden Restaurants, Inc.
|
| Issue: | Senior notes
|
| Amount: | $450 million, upsized from $300 million
|
| Maturity: | Nov. 1, 2022
|
| Bookrunners: | Bank of America Merrill Lynch, SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments Inc. (active), Fifth Third Securities Inc., Wells Fargo Securities LLC (passive)
|
| Co-managers: | Deutsche Bank Securities Inc., Mizuho Securities USA Inc., Goldman Sachs & Co., Blaylock Robert Van, LLC, Comerica Securities, Inc., Muriel Siebert & Co., Inc.
|
| Coupon: | 3.35%
|
| Price: | 99.828
|
| Yield: | 3.37%
|
| Spread: | Treasuries plus 175 bps
|
| Call: | Make-whole at Treasuries plus 30 bps until Aug. 1, 2022, par call after
|
| Change-of-control put: | 101%
|
| Trade date: | Oct. 1
|
| Settlement date: | Oct. 4
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
| Price talk: | 200 bps area
|
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