Published on 11/13/2019 in the Prospect News Investment Grade Daily.
New Issue: Hasbro sells $2.38 billion of fixed-rate senior notes in four parts
By Cristal Cody
Tupelo, Miss., Nov. 13 – Hasbro, Inc. sold $2,375,000,000 of senior notes (Baa3/BBB-/BBB-) in four tranches on Wednesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
Hasbro priced $300 million of 2.6% three-year notes at 99.989 to yield 2.604% and a spread of 95 basis points over Treasuries.
The company sold $500 million of 3% five-year notes at 99.811 to yield 3.041%, or a Treasuries plus 135 bps spread.
A $675 million tranche of 3.55% seven-year notes came at 99.705 to yield 3.598%. The notes priced at a spread of 180 bps over Treasuries.
In the final tranche, the company placed $900 million of 3.9% 10-year notes at 99.68 to yield 3.939% and a Treasuries plus 205 bps spread.
The notes priced on the tight side of guidance.
BofA Securities, Inc., J.P. Morgan Securities LLC, Citigroup Global Markets Inc., MUFG, Scotia Capital (USA) Inc., SunTrust Robinson Humphrey Inc. and Citizens Capital Markets Inc. were the bookrunners.
Proceeds will be used for the company’s planned acquisition of Entertainment One Ltd.
The toy and game company is based in Pawtucket, R.I.
| Issuer: | Hasbro, Inc.
|
| Amount: | $2,375,000,000
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., J.P. Morgan Securities LLC, Citigroup Global Markets Inc., MUFG, Scotia Capital (USA) Inc., SunTrust Robinson Humphrey Inc. and Citizens Capital Markets Inc.
|
| Co-managers: | ANZ Securities, Inc., BBVA Securities Inc., Huntington Investment Co. and SMBC Nikko Securities America Inc.
|
| Trade date: | Nov. 13
|
| Settlement date: | Nov. 19
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $300 million
|
| Maturity: | Nov. 19, 2022
|
| Coupon: | 2.6%
|
| Price: | 99.989
|
| Yield: | 2.604%
|
| Spread: | Treasuries plus 95 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps; special mandatory call at 101% under certain conditions
|
| Price guidance: | Treasuries plus 100 bps area, plus or minus 5 bps
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | Nov. 19, 2024
|
| Coupon: | 3%
|
| Price: | 99.811
|
| Yield: | 3.041%
|
| Spread: | Treasuries plus 135 bps
|
| Call features: | Make-whole call before Oct. 19, 2024 at Treasuries plus 25 bps; thereafter at par; special mandatory call at 101% under certain conditions
|
| Price guidance: | Treasuries plus 140 bps area, plus or minus 5 bps
|
|
|
| Seven-year notes
|
| Amount: | $675 million
|
| Maturity: | Nov. 19, 2026
|
| Coupon: | 3.55%
|
| Price: | 99.705
|
| Yield: | 3.598%
|
| Spread: | Treasuries plus 180 bps
|
| Call features: | Make-whole call before Sept. 19, 2026 at Treasuries plus 30 bps; thereafter at par; special mandatory call at 101% under certain conditions
|
| Price guidance: | Treasuries plus 185 bps area, plus or minus 5 bps
|
|
|
| 10-year notes
|
| Amount: | $900 million
|
| Maturity: | Nov. 19, 2029
|
| Coupon: | 3.9%
|
| Price: | 99.68
|
| Yield: | 3.939%
|
| Spread: | Treasuries plus 205 bps
|
| Call features: | Make-whole call before Aug. 19, 2029 at Treasuries plus 35 bps; thereafter at par; special mandatory call at 101% under certain conditions
|
| Price guidance: | Treasuries plus 210 bps area, plus or minus 5 bps
|
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