By Cristal Cody
Tupelo, Miss., Aug. 19 – Hanover Insurance Group Inc. priced $300 million of 2.5% 10-year notes (Baa2/BBB) on Wednesday at 99.868 to yield 2.515%, or a spread of Treasuries plus 185 basis points, according to a market source and an FWP filed with the Securities and Exchange Commission.
Price talk was at the 225 bps spread area.
Morgan Stanley & Co. LLC, Wells Fargo Securities LLC and J.P. Morgan Securities LLC were the bookrunners.
Proceeds will be used to redeem all $175 million of the company’s 6.35% subordinated debentures due 2053 and for general corporate purposes.
Worcester, Mass.-based Hanover is a property and casualty insurance company.
| Issuer: | Hanover Insurance Group Inc.
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| Amount: | $300 million
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| Maturity: | Sept. 1, 2030
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| Description: | Senior notes
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| Bookrunners: | Morgan Stanley & Co. LLC, Wells Fargo Securities LLC and J.P. Morgan Securities LLC
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| Co-managers: | Goldman Sachs & Co. LLC, PNC Capital Markets LLC, Scotia Capital (USA) Inc. and Truist Securities, Inc.
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| Coupon: | 2.5%
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| Price: | 99.868
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| Yield: | 2.515%
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| Spread: | Treasuries plus 185 bps
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| Call features: | Make-whole call before June 1, 2030 at Treasuries plus 30 bps; thereafter at par
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| Trade date: | Aug. 19
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| Settlement date: | Aug. 24
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| Ratings: | Moody’s: Baa2
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| S&P: BBB
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| Distribution: | SEC registered
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| Price guidance: | Treasuries plus 225 bps area
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