Published on 5/8/2014 in the Prospect News Investment Grade Daily.
New Issue: Hasbro prices $600 million of notes in seven-, 30-year tranches
By Aleesia Forni
Virginia Beach, May 8 - Hasbro Inc. was in Thursday's market with a $600 million two-part offering of senior notes (Baa2/BBB/BBB+) due 2021 and 2044, according to a syndicate source.
The $300 million of 3.15% seven-year notes priced with a spread of Treasuries plus 100 basis points, or 99.906 to yield 3.165%.
A second tranche was $300 million of 5.1% 30-year bonds sold at 99.817 to yield 5.112%. The notes sold at 170 bps over Treasuries.
Both tranches sold at the tight end of talk.
BofA Merrill Lynch, Morgan Stanley & Co. LLC, Citigroup Global Markets Inc. and RBS Securities Inc. were the joint bookrunners.
Proceeds will be used to repay $425 million of the company's 6.125% notes due 2014, and remaining proceeds will be used for general corporate and working capital purposes, which may include the repayment of debt, capital expenditures, acquisitions and repurchases of shares of its common stock.
The toy and game company is based in Pawtucket, R.I.
| Issuer: | Hasbro Inc.
|
| Issue: | Senior notes
|
| Amount: | $600 million
|
| Joint bookrunners: | BofA Merrill Lynch, Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., RBS Securities Inc.
|
| Co-managers: | SunTrust Robinson Humphrey Inc., ANZ Securities Inc., BBVA Securities Inc., BNY Mellon Capital Markets LLC, Huntington Investment Co., Scotia Capital (USA) Inc., SMBC Nikko Capital Markets Ltd.
|
| Trade date: | May 8
|
| Settlement date: | May 13
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| Six-year notes
|
| Amount: | $300 million
|
| Maturity: | May 15, 2021
|
| Coupon: | 3.15%
|
| Price: | 99.906
|
| Yield: | 3.165%
|
| Spread: | Treasuries plus 100 bps
|
| Price talk: | Treasuries plus 105 bps area
|
| Make-whole call: | Treasuries plus 15 bps prior to March 15, 2021, then callable at par
|
|
|
| 30-year bonds
|
| Amount: | $300 million
|
| Maturity: | May 15, 2044
|
| Coupon: | 5.1%
|
| Price: | 99.817
|
| Yield: | 5.112%
|
| Spread: | Treasuries plus 170 bps
|
| Price talk: | Treasuries plus 175 bps area
|
| Make-whole call: | Treasuries plus 25 bps prior to Nov. 15, 2043, then callable at par
|
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