By Andrea Heisinger
New York, Aug. 17 - Progressive Corp. sold $500 million of 3.75% 10-year senior notes on Wednesday to yield Treasuries plus 160 basis points, according to an FWP filing with the Securities and Exchange Commission.
The notes (A1/A+/A) were sold at 99.892 to yield 3.763%. They have a make-whole call at Treasuries plus 30 bps.
Credit Suisse Securities (USA) LLC was the bookrunner.
Proceeds will be used for general corporate purposes, including repurchase and repayment of outstanding debt including $350 million of 6.375% senior notes due 2012 and/or $150 million of 7% notes due 2013.
According to Prospect News data, Progressive hasn't sold debt any time after mid-2007.
The insurance company is based in Mayfield Village, Ohio.
| Issuer: | Progressive Corp.
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Maturity: | Aug. 23, 2021
|
| Bookrunner: | Credit Suisse Securities (USA) LLC
|
| Coupon: | 3.75%
|
| Price: | 99.892
|
| Yield: | 3.763%
|
| Spread: | Treasuries plus 160 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Trade date: | Aug. 17
|
| Settlement date: | Aug. 22
|
| Ratings: | Moody's: A1
|
| Standard & Poor's: A+
|
| Fitch: A
|
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