Published on 6/9/2020 in the Prospect News Investment Grade Daily.
New Issue: Principal Financial prices $500 million of 2.125% 10-year notes at 135 bps spread
By Cristal Cody
Tupelo, Miss., June 9 – Principal Financial Group, Inc. priced $500 million of 2.125% 10-year senior notes (Baa1/A-/A-) on Tuesday at a spread of 135 basis points over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.
Initial price talk was in the Treasuries plus 150 bps area.
The notes priced at 99.517 to yield 2.179%.
Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Wells Fargo Securities, LLC, BNP Paribas Securities Corp., BofA Securities, Inc., Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC were the bookrunners.
The issue is guaranteed by Principal Financial Services, Inc.
Proceeds from the offering will be used for general corporate purposes.
The investment management company is based in Des Moines.
| Issuer: | Principal Financial Group, Inc.
|
| Guarantor: | Principal Financial Services, Inc.
|
| Amount: | $500 million
|
| Description: | Senior notes
|
| Maturity: | June 15, 2030
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Wells Fargo Securities, LLC, BNP Paribas Securities Corp., BofA Securities, Inc., Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC
|
| Senior co-managers: | Barclays, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and U.S. Bancorp Investments, Inc.
|
| Co-managers: | Academy Securities, Inc., RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc. and TD Securities (USA) LLC
|
| Coupon: | 2.125%
|
| Price: | 99.517
|
| Yield: | 2.179%
|
| Spread: | Treasuries plus 135 bps
|
| Call features: | Make-whole call before March 15, 2030 at greater of par or Treasuries plus 20 bps; thereafter at par
|
| Trade date: | June 9
|
| Settlement date: | June 12
|
| Ratings: | Moody’s: Baa1
|
| S&P: A-
|
| Fitch: A-
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 150 bps area
|
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