By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, May 22 – Progressive Corp. sold $500 million of 4.95% 10-year senior notes at 99.941 to yield 4.957% on Monday, according to an FWP filing with the Securities and Exchange Commission.
The notes due (A2/A/A) priced with a spread of 125 basis points over Treasuries, tighter than talk that was in the Treasuries plus 145 bps area, according to a market source.
Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC were the bookrunners.
Proceeds will be used for general corporate purposes.
Progressive is an insurance company based in Mayfield Village, Ohio.
| Issuer: | Progressive Corp.
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| Amount: | $500 million
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| Issue: | Senior notes
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| Maturity: | June 15, 2033
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| Bookrunners: | Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC
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| Co-managers: | Academy Securities, Inc. and PNC Capital Markets LLC
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| Trustee: | U.S. Bank Trust Co.
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| Counsel to issuer: | Baker & Hostetler LLP
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| Counsel to underwriters: | Sullivan & Cromwell LLP
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| Coupon: | 4.95%
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| Price: | 99.941
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| Yield: | 4.957%
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| Spread: | Treasuries plus 125 bps
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| Call feature: | Make-whole call before March 15, 2033 at Treasuries plus 20 bps; thereafter at par
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| Trade date: | May 22
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| Settlement date: | May 25
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| Ratings: | Moody’s: A2
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| S&P: A
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| Fitch: A
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| Distribution: | SEC registered
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| Price talk: | Treasuries plus 145 bps area
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| Cusip: | 743315BB8
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