By Andrea Heisinger
New York, Sept. 17 - Ingredion Inc. priced $300 million of 1.8% five-year senior notes on Monday at 120 basis points over Treasuries, a market source said.
There was guidance in the 150 bps area, with the bonds selling tighter than that level.
The notes (Baa2/BBB/BBB) were sold at 99.438 to yield 1.918%.
The deal features a make-whole call at 20 bps over Treasuries and a change-of-control put at 101%.
Bank of America Merrill Lynch, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were the bookrunners.
Co-managers were BB&T Capital Markets, BMO Capital Markets Corp., Mizuho Securities USA Inc., Fifth Third Securities, Inc., HSBC Securities (USA) Inc., ING Financial Markets LLC, Lloyds Securities Inc., PNC Capital Markets LLC, Rabo Securities USA, Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC.
Proceeds will be used to repay $200 million of debt under a revolving credit facility and for general corporate purposes.
The maker of starches and sweeteners is based in Westchester, Ill.
| Issuer: | Ingredion Inc.
|
| Issue: | Senior notes
|
| Amount: | $300 million
|
| Maturity: | Sept. 25, 2017
|
| Bookrunners: | Bank of America Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC
|
| Co-managers: | BB&T Capital Markets, BMO Capital Markets Corp., Mizuho Securities USA Inc., Fifth Third Securities, Inc., HSBC Securities (USA) Inc., ING Financial Markets LLC, Lloyds Securities Inc., PNC Capital Markets LLC, Rabo Securities USA, Inc., U.S. Bancorp Investments Inc., Wells Fargo Securities LLC
|
| Coupon: | 1.8%
|
| Price: | 99.438
|
| Yield: | 1.918%
|
| Spread: | Treasuries plus 120 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Change-of-control put: | 101%
|
| Trade date: | Sept. 17
|
| Settlement date: | Sept. 20
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
| Price talk: | 150 bps area
|
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