Published on 2/24/2021 in the Prospect News Investment Grade Daily.
New Issue: Fortinet prices $1 billion of five-. 10-year senior notes
By Wendy Van Sickle
Columbus, Ohio, Feb. 24 – Fortinet, Inc. priced $1 billion of senior notes due in five and 10 years (Baa1/BBB+) on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
The company priced $500 million of 1% five-year notes at a spread of 50 basis points over Treasuries. These notes priced at 99.463 to yield 1.11%.
The issuer priced $500 million of 2.2% 10-year notes at a spread of 85 bps over Treasuries. These notes priced at 99.66 to yield 2.238%.
The notes will have a make-whole call and then a par call.
BofA Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC are the bookrunners.
Proceeds will be used for general corporate purposes.
Based in Sunnyvale, Calif., Fortinet develops and sells cybersecurity solutions.
| Issuer: | Fortinet, Inc.
|
| Issue: | Senior notes
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| Amount: | $1 billion
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| Bookrunners: | BofA Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC
|
| Co-managers: | BBVA Securities Inc., BNP Paribas Securities Corp., Commerz Markets LLC, Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Loop Capital Markets LLC, Mizuho Securities USA LLC, PNC Capital Markets LLC, Scotia Capital (USA) Inc., SG Americas Securities, LLC, Standard Chartered Bank and UBS Securities LLC
|
| Trade date: | Feb. 24
|
| Settlement date: | March 5
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
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| Amount: | $500 million
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| Maturity: | March 15, 2026
|
| Coupon: | 1%
|
| Price: | 99.463
|
| Yield: | 1.11%
|
| Spread: | Treasuries plus 50 bps
|
| Call: | Make-whole call at Treasuries plus 10 bps until Feb. 15, 2026; par call thereafter
|
|
|
| 10-year notes
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| Amount: | $500 million
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| Maturity: | March 15, 2031
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| Coupon: | 2.2%
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| Price: | 99.66
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| Yield: | 2.238%
|
| Spread: | Treasuries plus 85 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps until Dec. 15, 2030; par call thereafter
|
|
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