By William Gullotti
Buffalo, N.Y., May 1 – Hershey Co. priced $750 million of senior notes in parts due 2028 and 2033 (A1/A) on Monday, according to an FWP filing and a 424B5 filing with the Securities and Exchange Commission.
A $350 million tranche of 4.25% five-year notes priced at 99.857 to yield 4.282%, or a spread of 67 basis points over Treasuries.
Hershey also sold $400 million of 4.5% 10-year notes at 99.801, or at Treasuries plus 97 bps, to yield 4.525%.
Both tranches feature a change-of-control put at 101. The five-year notes have a make-whole call at Treasuries plus 12.5 bps until April 4, 2028, followed by a par call. The 10-year notes’ make-whole call is at Treasuries plus 15 bps until Feb. 4, 2033, likewise followed by a par call.
BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC and U.S. Bancorp Investments, Inc. are the joint bookrunners.
The company intends to use proceeds to repay all of its 2.625% notes due May 1, 2023, of which $250 million is outstanding, and all of its 3.375% notes due May 15, 2023, of which $500 million is outstanding, as well as for general corporate purposes.
The maker of chocolate and confectionery products is based in Hershey, Pa.
| Issuer: | Hershey Co.
|
| Amount: | $750 million
|
| Issue: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC and U.S. Bancorp Investments, Inc.
|
| Co-managers: | Academy Securities Inc., Banco Bradesco BBI SA, CIBC World Markets Corp. and Loop Capital Markets LLC
|
| Trustee: | U.S. Bank Trust Co., NA
|
| Counsel to issuer: | Hunton Andrews Kurth LLP
|
| Counsel to underwriters: | Cleary Gottlieb Steen & Hamilton LLP
|
| Change of control: | At 101
|
| Trade date: | May 1
|
| Settlement date: | May 4
|
| Ratings: | Moody’s: A1
|
| S&P: A
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $350 million
|
| Maturity: | May 4, 2028
|
| Coupon: | 4.25%
|
| Price: | 99.857
|
| Yield: | 4.282%
|
| Spread: | Treasuries plus 67 bps
|
| Call features: | Make-whole call of Treasuries plus 12.5 bps before April 4, 2028; thereafter at par
|
| Cusip: | 427866BH0
|
|
|
| 10-year notes
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| Amount: | $400 million
|
| Maturity: | May 4, 2033
|
| Coupon: | 4.5%
|
| Price: | 99.801
|
| Yield: | 4.525%
|
| Spread: | Treasuries plus 97 bps
|
| Call features: | Make-whole call of Treasuries plus 15 bps before Feb. 4, 2033; thereafter at par
|
| Cusip: | 427866BJ6
|
|
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