Published on 3/2/2022 in the Prospect News Investment Grade Daily.
New Issue: Progressive prices $1.5 billion of notes due 2027, 2032, 2052
By Wendy Van Sickle
Columbus, Ohio, March 2 – Progressive Corp. priced $1.5 billion of senior notes (A2/A/A) in three parts on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
The company sold $500 million of 2.5% five-year notes at 99.962 to yield 2.508% and a spread of 75 basis points over Treasuries.
The company sold $500 million of 3% 10-year notes at 99.759 to yield 3.028% and a spread of 115 bps over Treasuries.
A $500 million tranche of 3.7% 30-year notes priced at 99.747 to yield 3.714% and with a Treasuries plus 145 bps spread.
Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Siebert Williams Shank & Co., LLC are the joint bookrunners.
Proceeds will be used for general corporate purposes.
Progressive is an insurance company based in Mayfield Village, Ohio.
| Issuer: | Progressive Corp.
|
| Amount: | $1.5 billion
|
| Issue: | Senior notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Siebert Williams Shank & Co., LLC
|
| Co-managers: | Academy Securities, Inc., Loop Capital Markets LLC and Samuel A. Ramirez & Co., Inc.
|
| Trustee: | U.S. Bank Trust Co., NA
|
| Counsel for issuer: | Baker & Hostetler LLP
|
| Counsel for underwriters: | Sullivan & Cromwell LLP
|
| Trade date: | March 2
|
| Settlement date: | March 9
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | March 15, 2027
|
| Coupon: | 2.5%
|
| Price: | 99.962
|
| Yield: | 2.508%
|
| Spread: | Treasuries plus 75 bps
|
| Call feature: | Make-whole call before Feb. 15, 2027 at Treasuries plus 15 bps; thereafter at par
|
| Cusip: | 743315AY9
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | March 15, 2032
|
| Coupon: | 3%
|
| Price: | 99.759
|
| Yield: | 3.028%
|
| Spread: | Treasuries plus 115 bps
|
| Call feature: | Make-whole call before Dec. 15, 2031 at Treasuries plus 20 bps; thereafter at par
|
| Cusip: | 743315AZ6
|
|
|
| 30-year notes
|
| Amount: | $500 million
|
| Maturity: | March 15, 2052
|
| Coupon: | 3.7%
|
| Price: | 99.747
|
| Yield: | 3.714%
|
| Spread: | Treasuries plus 145 bps
|
| Call feature: | Make-whole call before Sept. 15, 2051 at Treasuries plus 25 bps; thereafter at par
|
| Cusip: | 743315BA0
|
|
|
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