By Andrea Heisinger
New York, Sept. 6 - Principal Financial Group, Inc. gave terms for its $600 million sale of senior notes (A3/BBB+) divided equally between two tranches, according to an FWP filing with the Securities and Exchange Commission.
The $300 million of 3.3% 10-year notes priced at 99.636 to yield 3.343% with a spread of 175 basis points over Treasuries. The notes priced tighter than talk in the 217.5 bps area with a margin of plus or minus 2.5 bps.
There is a make-whole call at 25 bps over Treasuries on the notes.
There was also $300 million of 4.625% 30-year bonds sold at 99.822 to yield 4.636% with a spread of 195 bps over Treasuries. The bonds were also sold tighter than talk in the 240 bps area.
The bonds have a make-whole call at 30 bps over Treasuries.
Bookrunners were Barclays, Citigroup Global Markets Inc. and Wells Fargo Securities LLC.
Proceeds will be used for general corporate purposes, including repayment of $400 million in 7.875% notes due March 15, 2014, along with potential acquisitions and organic growth.
The notes are guaranteed by Principal Financial Services, Inc.
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: | $600 million
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc., Wells Fargo Securities LLC
|
| Senior co-managers: | Deutsche Bank Securities Inc., UBS Securities LLC, U.S. Bancorp Investments Inc.
|
| Co-managers: | Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., RBC Capital Markets LLC, Samuel A. Ramirez & Co.
|
| Trade date: | Sept. 5
|
| Settlement date: | Sept. 10
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: BBB+
|
| Fitch: A-
|
|
|
| 10-year notes
|
| Amount: | $300 million
|
| Maturity: | Sept. 15, 2022
|
| Coupon: | 3.3%
|
| Price: | 99.636
|
| Yield: | 3.343%
|
| Spread: | Treasuries plus 175 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 217.5 bps area, plus or minus 2.5 bps
|
|
|
| 30-year bonds
|
| Amount: | $300 million
|
| Maturity: | Sept. 15, 2042
|
| Coupon: | 4.625%
|
| Price: | 99.822
|
| Yield: | 4.636%
|
| Spread: | Treasuries plus 195 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Price talk: | 240 bps area
|
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