Published on 5/14/2020 in the Prospect News Investment Grade Daily.
New Issue: PPG Industries prices $300 million of 2.55% 10-year notes at 200 bps spread
By Cristal Cody
Tupelo, Miss., May 14 – PPG Industries, Inc. priced $300 million of 2.55% 10-year notes (A3/BBB+/A-) on Thursday at 99.365 to yield 2.622%, or a spread of Treasuries plus 200 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
Initial price talk was at the Treasuries plus 200 bps area.
The company also was expected to price a 30-year tranche that was talked to price at the Treasuries plus 230 bps area but dropped the issue from the final offering.
J.P. Morgan Securities LLC, PNC Capital Markets LLC, TD Securities (USA) LLC, U.S. Bancorp Investments Inc., BBVA Securities Inc., Mizuho Securities USA Inc., Santander Investment Securities Inc. and SMBC Nikko Securities America Inc. were the bookrunners.
Proceeds were expected to be used to redeem all $500 million of the company’s 3.6% notes due 2020.
PPG is a diversified coatings and chemical manufacturing company based in Pittsburgh.
| Issuer: | PPG Industries, Inc.
|
| Amount: | $300 million
|
| Description: | Notes
|
| Maturity: | June 15, 2030
|
| Bookrunners: | J.P. Morgan Securities LLC, PNC Capital Markets LLC, TD Securities (USA) LLC, U.S. Bancorp Investments Inc., BBVA Securities Inc., Mizuho Securities USA Inc., Santander Investment Securities Inc. and SMBC Nikko Securities America Inc.
|
| Senior co-managers: | Banca IMI SpA, BofA Securities, Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., MUFG, SG Americas Securities, LLC and Wells Fargo Securities, LLC
|
| Co-managers: | Huntington Securities, Inc., ANZ Securities, Inc., ICBC Standard Bank plc, Morgan Stanley & Co. LLC, Seibert Williams Shank & Co., LLC and BNY Mellon Capital Markets, LLC
|
| Coupon: | 2.55%
|
| Price: | 99.365
|
| Yield: | 2.622%
|
| Spread: | Treasuries plus 200 bps
|
| Call features: | Make-whole call at Treasuries plus 30 bps before March 15, 2030; thereafter at par
|
| Trade date: | May 14
|
| Settlement date: | May 19
|
| Ratings: | Moody’s: A3
|
| S&P: BBB+
|
| Fitch: A-
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 200 bps area
|
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