By Cristal Cody
Tupelo, Miss., March 25 – NIKE, Inc. sold $6 billion of fixed-rate notes (A1/AA-) in five tranches on Wednesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
A $1 billion tranche of 2.4% five-year notes priced at 99.864 to yield 2.429%, or a spread of Treasuries plus 190 basis points, compared to talk in the 240 bps area.
NIKE sold $1 billion of 2.75% seven-year notes at a 200 bps over Treasuries spread, or 99.987 to yield 2.752%. Initial price talk was in the 250 bps area.
A $1.5 billion tranche of 2.85% 10-year notes priced at 99.853 to yield 2.867%, or Treasuries plus 200 bps.
Initial talk was in the Treasuries plus 250 bps area.
The company sold $1 billion of 3.25% 20-year notes at 99.374 to yield 3.293%, or Treasuries plus 180 bps.
The tranche was initially talked to price at the Treasuries plus 240 bps area.
In the final tranche, $1.5 billion of 3.375% 30-year notes priced at 99.663 to yield 3.393%. The notes priced with a Treasuries plus 190 bps spread.
The issue was talked to print at the 250 bps over Treasuries area.
BofA Securities Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC were the bookrunners.
The Beaverton, Ore.-based sports footwear and apparel company plans to use the proceeds for general corporate purposes.
| Issuer: | NIKE, Inc.
|
| Amount: | $6 billion
|
| Description: | Notes
|
| Bookrunners: | BofA Securities Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC
|
| Co-managers: | RBC Capital Markets, LLC, Standard Chartered Bank, Academy Securities, Inc., Loop Capital Markets LLC and Multi-Bank Securities, Inc.
|
| Trade date: | March 25
|
| Settlement date: | March 27
|
| Ratings: | Moody’s: A1
|
| S&P: AA-
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | March 27, 2025
|
| Coupon: | 2.4%
|
| Price: | 99.864
|
| Yield: | 2.429%
|
| Spread: | Treasuries plus 190 bps
|
| Call features: | Make-whole call before Feb. 27, 2025 at price equal to greater of par or Treasuries plus 30 bps; thereafter at par
|
| Price guidance: | Treasuries plus 240 bps area
|
|
|
| Seven-year notes
|
| Amount: | $1 billion
|
| Maturity: | March 27, 2027
|
| Coupon: | 2.7%
|
| Price: | 99.987
|
| Yield: | 2.752%
|
| Spread: | Treasuries plus 200 bps
|
| Call features: | Make-whole call before Jan. 27, 2027 at price equal to greater of par or Treasuries plus 30 bps; thereafter at par
|
| Price guidance: | Treasuries plus 250 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | March 27, 2030
|
| Coupon: | 2.85%
|
| Price: | 99.853
|
| Yield: | 2.867%
|
| Spread: | Treasuries plus 200 bps
|
| Call features: | Make-whole call before Dec. 27, 2029 at price equal to greater of par or Treasuries plus 30 bps; thereafter at par
|
| Price guidance: | Treasuries plus 250 bps area
|
|
|
| 20-year notes
|
| Amount: | $1 billion
|
| Maturity: | March 27, 2040
|
| Coupon: | 3.25%
|
| Price: | 99.374
|
| Yield: | 3.293%
|
| Spread: | Treasuries plus 180 bps
|
| Call features: | Make-whole call before Sept. 27, 2039 at price equal to greater of par or Treasuries plus 30 bps; thereafter at par
|
| Price guidance: | Treasuries plus 240 bps area
|
|
|
| 30-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | March 27, 2050
|
| Coupon: | 3.375%
|
| Price: | 99.663
|
| Yield: | 3.393%
|
| Spread: | Treasuries plus 190 bps
|
| Call features: | Make-whole call before Sept. 27, 2049 at price equal to greater of par or Treasuries plus 30 bps; thereafter at par
|
| Price guidance: | Treasuries plus 250 bps area
|
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