By Aleesia Forni
Virginia Beach, May 4 – Principal Financial Group, Inc. sold $400 million 3.4% 10-year senior notes (Baa1/BBB+) on Monday at Treasuries plus 130 basis points, according to an informed source.
The issue sold at 99.688 to yield 3.437%.
Pricing was in line with guidance.
Bookrunners were BofA Merrill Lynch, Citigroup Global Markets Inc., U.S. Bancorp Investments Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC and UBS Securities LLC.
Proceeds will be used to redeem the company’s series A perpetual preferred stock and for general corporate purposes.
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.
|
| Amount: | $400 million
|
| Description: | Senior notes
|
| Maturity: | May 15, 2025
|
| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., U.S. Bancorp Investments Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC, UBS Securities LLC
|
| Coupon: | 3.4%
|
| Price: | 99.688
|
| Yield: | 3.437%
|
| Spread: | 130 bps over Treasuries
|
| Trade date: | May 4
|
| Ratings: | Moody’s: Baa1
|
| Standard & Poor’s: BBB+
|
| Distribution: | SEC registered
|
| Price guidance: | 130 bps area over Treasuries, tightened from 145 bps area
|
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