By Cristal Cody
Chicago, Aug. 10 – Alleghany Corp. sold an upsized $500 million issue of 3.25% 30-year notes (Baa1/BBB+) at 98.639 to yield 3.322%, according to an FWP filing with the Securities and Exchange Commission.
The notes were sold with a Treasuries plus 132 basis points spread, low to talk in the Treasuries plus 160 bps area, a market source reported earlier on Tuesday.
Originally, the notes were announced at $400 million.
The notes have a make-whole call at Treasuries plus 20 bps until Feb. 15, 2051 and a par call thereafter.
BMO Capital Markets Corp., Goldman Sachs & Co. LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC are joint bookrunners.
Proceeds will be used for general corporate purposes, which may include the repayment at maturity of the company’s 4.95% senior notes due 2022.
Alleghany is a New York-based investment holding company, with a core position in property and casualty reinsurance and insurance.
| Issuer: | Alleghany Corp.
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Maturity: | Aug. 15, 2051
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| Bookrunners: | BMO Capital Markets Corp., Goldman Sachs & Co. LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
|
| Trustee: | Bank of New York Mellon
|
| Counsel to issuer: | Olshan Frome Wolosky LLP
|
| Coupon: | 3.25%
|
| Price: | 98.639
|
| Yield: | 3.322%
|
| Spread: | Treasuries plus 132 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps until Feb. 15, 2051; par call thereafter
|
| Trade date: | Aug. 10
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| Settlement date: | Aug. 13
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Distribution: | SEC registered
|
| Cusip: | 017175AF7
|
| Price talk: | Treasuries plus 160 bps area
|
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