Published on 5/7/2019 in the Prospect News Investment Grade Daily.
New Issue: Principal Financial sells $500 million 3.7% 10-year notes at 130 bps over Treasuries
By Cristal Cody
Tupelo, Miss., May 7 – Principal Financial Group, Inc. priced $500 million of 3.7% 10-year senior notes (Baa1/A-) on Tuesday at a spread of 130 basis points over Treasuries, according to an FWP filing with the Securities and Exchange Commission.
The notes priced at 99.602 to yield 3.748%.
Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, BofA Merrill Lynch, BNP Paribas Securities Corp., Morgan Stanley & Co. LLC, RBC Capital Markets LLC and U.S. Bancorp Investments Inc. were the bookrunners.
The notes are guaranteed by Principal Financial Services, Inc.
Proceeds will be used to acquire Wells Fargo Bank, NA's Institutional Retirement & Trust business unit.
The retirement savings, investment and insurance products company is based in Des Moines.
| Issuer: | Principal Financial Group, Inc.
|
| Guarantor: | Principal Financial Services, Inc.
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| Amount: | $500 million
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| Description: | Senior notes
|
| Maturity: | May 15, 2029
|
| Bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, BofA Merrill Lynch, BNP Paribas Securities Corp., Morgan Stanley & Co. LLC, RBC Capital Markets LLC and U.S. Bancorp Investments Inc.
|
| Co-managers: | Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Wells Fargo Securities, LLC, Academy Securities, Inc., Samuel A. Ramirez & Co., Inc., Scotia Capital (USA) Inc. and Williams Capital Group, LP
|
| Coupon: | 3.7%
|
| Price: | 99.602
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| Yield: | 3.748%
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| Spread: | Treasuries plus 130 bps
|
| Call features: | Make-whole call before Feb. 15, 2029 at greater of par or Treasuries plus 20 bps; thereafter at par; special mandatory redemption at 101 if acquisition not completed on or before March 31, 2020
|
| Trade date: | May 7
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| Settlement date: | May 10
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| Ratings: | Moody’s: Baa1
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| S&P: A-
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| Distribution: | SEC registered
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