By Andrea Heisinger
New York, Dec. 8 - IDEX Corp. priced an upsized $350 million of 4.2%10-year senior notes on Thursday to yield 225 basis points over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.
The size was increased from $300 million, a source said. Initial price guidance was in the 250 bps area.
The notes (Baa2/BBB/BBB+) were sold at 99.749 to yield 4.231%.
There is a make-whole call option at Treasuries plus 35 bps prior to Sept. 15, 2021, and the notes can be called after that date at par. They feature a change-of-control put at 101.
The notes have an effective interest rate of 5.4% due to a forward-starting swap entered into in July, according to a press release.
Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the bookrunners.
The senior co-managers were Mitsubishi UFJ Securities (USA) Inc., Mizuho Securities USA Inc. and U.S. Bancorp Investments Inc.
Barclays Capital Inc., Fifth Third Securities Inc., HSBC Securities (USA) Inc., PNC Capital Markets LLC, Williams Capital Group LP and BMO Capital Markets Corp. were co-managers.
Proceeds will be used to repay a portion of debt under a domestic multi-currency bank revolving credit facility and for general corporate purposes, including strategic acquisitions.
IDEX was last in the market with a $300 million sale of 4.5% 10-year notes on Dec. 1, 2010 at 160 bps over Treasuries.
The industrial pumping and dispensing products maker is based in Lake Forest, Ill.
| Issuer: | IDEX Corp.
|
| Issue: | Senior notes
|
| Amount: | $350 million, increased from $300 million
|
| Maturity: | Dec. 15, 2021
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Senior co-managers: | Mitsubishi UFJ Securities (USA) Inc., Mizuho Securities USA Inc., U.S. Bancorp Investments Inc.
|
| Co-managers: | Barclays Capital Inc., Fifth Third Securities Inc., HSBC Securities (USA) Inc., PNC Capital Markets LLC, Williams Capital Group LP, BMO Capital Markets Corp.
|
| Coupon: | 4.2%
|
| Price: | 99.749
|
| Yield: | 4.231%
|
| Spread: | Treasuries plus 225 bps
|
| Call: | Make-whole at Treasuries plus 35 bps until Sept. 14, 2021, after that at par
|
| Change-of-control put: | 101
|
| Trade date: | Dec. 8
|
| Settlement date: | Dec. 13
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB+
|
| Price talk: | 250 bps area
|
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