By Andrea Heisinger
New York, Nov. 8 - PPG Industries, Inc. sold $1 billion of senior notes (Baa1/BBB+/A-) in three parts on Monday, according to an FWP filing with the Securities and Exchange Commission.
A $250 million tranche of 1.9% notes due Jan. 15, 2016 priced at 99.124 to yield 2.079% with a spread of Treasuries plus 95 basis points. They have a make-whole call at the greater of Treasuries plus 15 bps or par.
A $500 million tranche of 3.6% 10-year notes sold at 98.774 to yield 3.748%, or 120 bps over Treasuries. They are callable at the greater of a make-whole of Treasuries plus 20 bps or par.
The third tranche was $250 million of 5.5% 30-year bonds that sold at 99.244 to yield 5.552% with a spread of Treasuries plus 145 bps. They have a make-whole call at the greater of Treasuries plus 25 bps or par.
All of the notes feature a change-of-control put at 101%.
Goldman Sachs & Co., J.P. Morgan Securities LLC and Morgan Stanley & Co. Inc. ran the books.
Senior co-managers were Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and SG Americas Securities LLC.
Banca IMI SpA, BNP Paribas Securities Corp., BNY Mellon Capital Markets, LLC, Credit Suisse Securities (USA) LLC, Daiwa Capital Markets America Inc., Deutsche Bank Securities Inc., Bank of America Merrill Lynch, PNC Capital Markets LLC, RBS Securities Inc. and Santander Investment Securities Inc. were the co-managers.
Proceeds are being used to repay a $400 million term loan, to contribute to pension plans, to fund asbestos claims and for general corporate purposes.
The diversified coatings and chemical manufacturing company is based in Pittsburgh.
| Issuer: | PPG Industries, Inc.
|
| Issue: | Senior notes
|
| Amount: | $1 billion
|
| Bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. Inc.
|
| Senior co-managers: | Citigroup Global Markets Inc., HSBC Securities (USA) Inc., SG Americas Securities LLC
|
| Co-managers: | Banca IMI SpA, BNP Paribas Securities Corp., BNY Mellon Capital Markets, LLC, Credit Suisse Securities (USA) LLC, Daiwa Capital Markets America Inc., Deutsche Bank Securities Inc., Bank of America Merrill Lynch, PNC Capital Markets LLC, RBS Securities Inc., Santander Investment Securities Inc.
|
| Change-of-control put: | 101%
|
| Trade date: | Nov. 8
|
| Settlement date: | Nov. 12
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
| Fitch: A-
|
|
|
| Five-year notes
|
| Amount: | $250 million
|
| Maturity: | Jan. 15, 2016
|
| Coupon: | 1.9%
|
| Price: | 99.124
|
| Yield: | 2.079%
|
| Spread: | Treasuries plus 95 bps
|
| Call: | Greater of a make-whole at Treasuries plus 15 bps or par
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Nov. 15, 2020
|
| Coupon: | 3.6%
|
| Price: | 98.774
|
| Yield: | 3.748%
|
| Spread: | Treasuries plus 120 bps
|
| Call: | Greater of a make-whole at Treasuries plus 20 bps or par
|
|
|
| 30-year bonds
|
| Amount: | $250 million
|
| Maturity: | Nov. 15, 2040
|
| Coupon: | 5.5%
|
| Price: | 99.244
|
| Yield: | 5.552%
|
| Spread: | Treasuries plus 145 bps
|
| Call: | Greater of a make-whole at Treasuries plus 25 bps or par
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
