By Cristal Cody
Tupelo, Miss., June 14 – CME Group Inc. (Aa3/AA-) priced a $1.2 billion two-tranche offering of senior notes (Aa3/AA-), according to an FWP filing with the Securities and Exchange Commission on Thursday.
The company sold $500 million of 3.75% 10-year notes at 99.984 to yield 3.752%, or a spread of Treasuries plus 80 basis points.
CME Group priced $700 million of 4.15% 30-year notes at 99.541 to yield 4.177%, or Treasuries plus 110 bps.
J.P. Morgan Securities, LLC, Barclays, BofA Merrill Lynch, BMO Capital Markets Corp., Credit Suisse Securities (USA), Lloyds Securities Inc., MUFG and Wells Fargo Securities LLC were the bookrunners.
The notes will have make-whole and par calls, as well as a special acquisition redemption.
The issue also has a 101% change-of-control put.
Proceeds will be used along with cash on hand to finance the cash portion of the acquisition costs of NEX Group plc.
CME Group announced in March it would acquire the London electronic FX and fixed income cash trading platform operator in a deal valued at about $5.4 billion, including about $2.7 billion in cash. The company will pay £10 per share, which includes 500 pence in cash and 0.0444 CME Group shares. If the acquisition does not close on or before June 30, 2019, CME Group will be required to redeem the new notes at 101.
CME Group is a Chicago-based derivatives electronic trading marketplace.
| Issuer: | CME Group Inc.
|
| Amount: | $1.2 billion
|
| Description: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities, LLC, Barclays, BofA Merrill Lynch, BMO Capital Markets Corp., Credit Suisse Securities (USA), Lloyds Securities Inc., MUFG and Wells Fargo Securities LLC
|
| Co-managers: | Loop Capital Markets LLC, TD Securities (USA) LLC, U.S. Bancorp Investments, Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Williams Capital Group, LP and Penserra Securities LLC
|
| Trade date: | June 14
|
| Settlement date: | June 21
|
| Ratings: | Moody’s: Aa3
|
| S&P: AA-
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | June 15, 2028
|
| Coupon: | 3.75%
|
| Price: | 99.984
|
| Yield: | 3.752%
|
| Spread: | Treasuries plus 80 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps before March 15, 2028; thereafter at par; special call at 101 if NEX acquisition does not close by June 30, 2019
|
| Change-of-control put: | 101%
|
|
|
| 30-year notes
|
| Amount: | $700 million
|
| Maturity: | June 15, 2048
|
| Coupon: | 4.15%
|
| Price: | 99.541
|
| Yield: | 4.177%
|
| Spread: | Treasuries plus 110 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps before Dec. 15, 2047; thereafter at par; special call at 101 if NEX acquisition does not close by June 30, 2019
|
| Change-of-control put: | 101%
|
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