By Lisa Kerner
Charlotte, N.C., July 22 – Fastenal Co. agreed to sell up to $200 million of senior notes to Metropolitan Life Insurance Co., NYL Investors LLC and PGIM, Inc. over a period of three years, according to an 8-K filed with the Securities and Exchange Commission.
The first and second series of notes issued under the agreement settled on Wednesday. The company issued $40 million of 2% notes due 2021 to Metropolitan Life and an affiliate and $35 million of 2.45% notes due 2022 to NYL Investors.
Interest on the notes is payable quarterly on Jan. 20, April 20, July 20 and Oct. 20.
Proceeds will be used to fund the purchase of industrial vending lockers.
Currently, Fastenal has no plans to issue additional notes under the master note agreement.
Under the agreement, Fastenal is required to offer to prepay all of the outstanding notes in full, together with unpaid interest but without premium, in the event of a change in control. In addition, the notes have a make-whole call at Treasuries plus 50 basis points.
Fastenal must also maintain a consolidated total leverage ratio of 2 to 1 as of the end of each fiscal quarter.
Consolidated EBITDA during any consecutive four-quarter period may not be less than $400 million.
Fastenal is a supplier of fasteners and other industrial products based in Winona, Minn.
| Issuer: | Fastenal Co.
|
| Issue: | Senior notes
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| Amount: | Up to $200 million
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| Agreement tenor: Three years
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| Agreement date: | July 20
|
| Distribution: | Private placement
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|
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| First series
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| Amount: | $40 million
|
| Coupon: | 2%
|
| Maturity: | July 20, 2021
|
| Call: | Make-whole call at Treasuries plus 50 bps
|
| Purchaser: | Metropolitan Life Insurance Co. and an affiliate
|
| Settlement date: | July 20
|
|
|
| Second series
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| Amount: | $35 million
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| Coupon: | 2.45%
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| Maturity: | July 20, 2022
|
| Call: | Make-whole call at Treasuries plus 50 bps
|
| Purchaser: | NYL Investors LLC
|
| Settlement date: | July 20
|
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