Published on 3/6/2023 in the Prospect News Investment Grade Daily.
New Issue: Principal Financial sells $700 million of 10-, 30-year senior notes
By Wendy Van Sickle
Columbus, Ohio, March 6 – Principal Financial Group, Inc. sold $700 million of senior notes (Baa1/A-/A-) in two tranches on Monday, according to an FWP filing with the Securities and Exchange Commission.
The company priced $400 million of 5.375% 10-year notes at 99.891 to yield 5.389%. The notes priced with a spread of 140 basis points over Treasuries.
Principal Financial sold $300 million of 5.5% 30-year notes at 99.751 to yield 5.517%, or 160 bps over Treasuries.
Citigroup Global Markets Inc., BofA Securities, Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, BNP Paribas Securities Corp., RBC Capital Markets, LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC were the bookrunners.
The notes are guaranteed by Principal Financial Services, Inc.
Proceeds will be used, together with available cash, to redeem all the outstanding $400 million 4.7% fixed-to-floating rate junior subordinated notes due 2055 and to repay at maturity all the $300 million outstanding 3.125% senior notes due 2023.
The investment management company is based in Des Moines.
| Issuer: | Principal Financial Group, Inc.
|
| Guarantor: | Principal Financial Services, Inc.
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| Amount: | $700 million
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| Issue: | Senior notes
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| Bookrunners: | Citigroup Global Markets Inc., BofA Securities, Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, BNP Paribas Securities Corp., RBC Capital Markets, LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | Academy Securities, Inc., BNY Mellon Capital Markets, LLC, Credit Agricole Securities (USA) Inc., Samuel A. Ramirez & Co., Inc., SMBC Nikko Securities America, Inc. and TD Securities (USA) LLC
|
| Trustee: | Bank of New York Mellon Trust Co., NA
|
| Counsel to issuer: | Debevoise & Plimpton LLP and in-house
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| Counsel to underwriters: | Pillsbury Winthrop Shaw Pittman LLP
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| Trade date: | March 6
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| Settlement date: | March 8
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| Ratings: | Moody’s: Baa1
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| S&P: A-
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| Fitch: A-
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| Distribution: | SEC registered
|
|
|
| 10-year notes
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| Amount: | $400 million
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| Maturity: | March 15, 2033
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| Coupon: | 5.375%
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| Price: | 99.891
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| Yield: | 5.389%
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| Spread: | Treasuries plus 140 bps
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| Call feature: | Before Dec. 15, 2032 at greater of par or Treasuries plus 25 bps; thereafter at par
|
| Cusip: | 74251VAT9
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|
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| 30-year notes
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| Amount: | $300 million
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| Maturity: | March 15, 2053
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| Coupon: | 5.5%
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| Price: | 99.751
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| Yield: | 5.517%
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| Spread: | Treasuries plus 160 bps
|
| Call feature: | Before Sept. 15, 2052 at greater of par or Treasuries plus 25 bps; thereafter at par
|
| Cusip: | 74251VAU6
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