By Andrea Heisinger
New York, Nov. 14 - Principal Financial Group, Inc. gave the terms of its upsized $900 million of senior notes (A3/BBB+/A-) priced in three maturities in an FWP filing with the Securities and Exchange Commission on Wednesday.
The deal size was increased from $800 million.
A $300 million tranche of 1.85% five-year notes sold at 99.896 to yield 1.872% with 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.
There is a make-whole call at Treasuries plus 20 bps.
The $300 million of 3.125% 10.5-year notes priced at 99.858 to yield 3.141% with a spread of 155 bps over Treasuries. The tranche was talked in the 162.5 bps area, plus or minus 2.5 bps.
The tranche features a make-whole call option at Treasuries plus 20 bps.
Finally, there was a $300 million tranche of 4.35% 30.5-year bonds priced at 99.749 to yield 4.365% with a spread of 165 bps over Treasuries. Price talk was in the 175 bps area.
The tranche has a make-whole call at 25 bps over Treasuries.
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
|
| Senior co-managers: | Bank of America Merrill Lynch, Morgan Stanley & Co. LLC
|
| Co-managers: | HSBC Securities (USA) Inc., RBS Securities Inc., Santander Investment Securities Inc., Wells Fargo Securities LLC, Williams Capital Group, LP
|
| Mandatory call: | At 101 if Cuprum acquisition not done on or before Nov. 19, 2013
|
| Trade date: | Nov. 13
|
| Settlement date: | Nov. 16
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: BBB+
|
| Fitch: A-
|
|
|
| Five-year notes
|
| Amount: | $300 million
|
| Maturity: | Nov. 15, 2017
|
| Coupon: | 1.85%
|
| Price: | 99.896
|
| Yield: | 1.872%
|
| Spread: | Treasuries plus 125 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Price talk: | 137.5 bps area, plus or minus 2.5 bps
|
|
|
| 10.5-year notes
|
| Amount: | $300 million
|
| Maturity: | May 15, 2023
|
| Coupon: | 3.125%
|
| Price: | 99.858
|
| Yield: | 3.141%
|
| Spread: | Treasuries plus 155 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Price talk: | 162.5 bps area, plus or minus 2.5 bps
|
|
|
| 30.5-year bonds
|
| Amount: | $300 million
|
| Maturity: | May 15, 2043
|
| Coupon: | 4.35%
|
| Price: | 99.749
|
| Yield: | 4.365%
|
| Spread: | Treasuries plus 165 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 175 bps area
|
© 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.
