By Andrea Heisinger
New York, May 19 - Principal Financial Group, Inc. filed full terms Tuesday for its $750 million of senior notes (A3/BBB+/) in two tranches priced late Monday, according to an FWP filing with the Securities and Exchange Commission.
The $400 million of 7.875% five-year notes priced at par to yield 7.876%, or Treasuries plus 577.2 basis points.
The $350 million of 8.875% 10-year notes priced at par to yield 8.875%, or Treasuries plus 563.6 bps.
Both tranches have a make-whole call at Treasuries plus 50 bps.
Bookrunners were Citigroup Global Markets Inc., Credit Suisse Securities and Deutsche Bank Securities Inc.
Senior co-managers were Barclays Capital Inc., Morgan Stanley & Co. Inc., UBS Investment Bank and Wachovia Capital Markets.
Co-managers were RBS Securities Inc. and Williams Capital Group LP.
Proceeds will be used to repay in full or part $441 million of 8.2% unsecured notes due Aug. 15, 2009 and for general corporate purposes.
The notes are guaranteed by Principal Financial Services, Inc.
The savings, investment and insurance company is based in Des Moines.
| Issuer: | Principal Financial Group, Inc.
|
| Guarantor: | Principal Financial Services, Inc.
|
| Issue: | Senior notes
|
| Total amount: | $750 million
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities, Deutsche Bank Securities Inc.
|
| Senior co-managers: | Barclays Capital Inc., Morgan Stanley & Co. Inc., UBS Investment Bank, Wachovia Capital Markets
|
| Co-managers: | RBS Securities Inc., Williams Capital Group LP
|
| Trade date: | May 18
|
| Settlement date: | May 21
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: BBB+
|
|
|
| Five-year notes
|
| Amount: | $400 million
|
| Maturity: | May 15, 2014
|
| Coupon: | 7.875%
|
| Price: | Par
|
| Yield: | 7.876%
|
| Spread: | Treasuries plus 577.2 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
|
|
| 10-year notes
|
| Amount: | $350 million
|
| Maturity: | May 15, 2019
|
| Coupon: | 8.875%
|
| Price: | Par
|
| Yield: | 8.875%
|
| Spread: | Treasuries plus 563.6 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
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