By Cristal Cody
Tupelo, Miss., March 17 – Progressive Corp. priced $1 billion of senior notes (A2/A/A) in two parts on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company sold $500 million of 3.2% 10-year notes at par to yield a spread of 225 basis points over Treasuries.
Initial price talk was in the Treasuries plus 250 bps area.
A $500 million tranche of 3.95% 30-year notes priced at 99.148 to yield 3.999% and with a Treasuries plus 245 bps spread.
The 30-year notes were guided to print in the 262.5 bps spread area.
BofA Securities, Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC were the bookrunners.
Proceeds will be used for general corporate purposes, including to redeem the company’s $500 million of senior notes, in whole or in part, prior to their scheduled maturity in August 2021.
Progressive is an insurance company based in Mayfield Village, Ohio.
| Issuer: | Progressive Corp.
|
| Amount: | $1 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC
|
| Trade date: | March 17
|
| Settlement date: | March 26
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | March 26, 2030
|
| Coupon: | 3.2%
|
| Price: | Par
|
| Yield: | 3.2%
|
| Spread: | Treasuries plus 225 bps
|
| Call feature: | Make-whole call before Dec. 26, 2029 at Treasuries plus 35 bps; thereafter at par
|
| Price guidance: | Treasuries plus 250 bps area
|
|
|
| 30-year notes
|
| Amount: | $500 million
|
| Maturity: | March 26, 2050
|
| Coupon: | 3.95%
|
| Price: | 99.148
|
| Yield: | 3.999%
|
| Spread: | Treasuries plus 245 bps
|
| Call feature: | Make-whole call before Sept. 26, 2049 at Treasuries plus 40 bps; thereafter at par
|
| Price guidance: | Treasuries plus 262.5 bps area
|
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