By Andrea Heisinger
New York, Nov. 13 - Principal Financial Group, Inc. priced an upsized $900 million of senior notes (A3/BBB+/A-) in three maturities on Tuesday, market sources said.
The deal size was increased from $800 million. Full terms of the trade were unavailable at press time.
A $300 million tranche of 1.85% five-year notes sold at a spread of Treasuries plus 125 basis points. The tranche sold tighter than guidance in the 137.5 bps area, plus or minus 2.5 bps.
The $300 million of 3.125% 10.5-year notes priced with a spread of 155 bps over Treasuries. The tranche was talked in the 162.5 bps area, plus or minus 2.5 bps.
Finally, there was a $300 million tranche of 4.35% 30.5-year bonds priced at 165 bps over Treasuries. Price talk was in the 175 bps area.
Bookrunners were Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. and UBS Securities LLC.
Proceeds will be used to pay a portion of the $1.5 billion acquisition consideration for Chile's Administradora de Fondos de Pensiones Cuprum SA.
There is a mandatory call if the Cuprum acquisition is done on or before Nov. 19, 2013.
Principal Financial was last in the market with a $600 million sale in 10-year and 30-year tranches on Sept. 6.
The retirement savings, investment and insurance products company is based in Des Moines.
| Issuer: | Principal Financial Group, Inc.
|
| Guarantor: | Principal Financial Services, Inc.
|
| Issue: | Senior notes
|
| Amount: | $900 million, upsized from $800 million
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., UBS Securities LLC
|
| Trade date: | Nov. 13
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: BBB+
|
| Fitch: A-
|
|
|
| Five-year notes
|
| Amount: | $300 million
|
| Maturity: | November 2017
|
| Coupon: | 1.85%
|
| Spread: | Treasuries plus 125 bps
|
| Price talk: | 137.5 bps area, plus or minus 2.5 bps
|
|
|
| 10.5-year notes
|
| Amount: | $300 million
|
| Maturity: | May 2023
|
| Coupon: | 3.125%
|
| Spread: | Treasuries plus 155 bps
|
| Price talk: | 162.5 bps area, plus or minus 2.5 bps
|
|
|
| 30.5-year bonds
|
| Amount: | $300 million
|
| Maturity: | May 2043
|
| Coupon: | 4.35%
|
| Spread: | Treasuries plus 165 bps
|
| Price talk: | 175 bps area
|
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