By Aleesia Forni
Virginia Beach, April 22 - Progressive Corp. sold a $350 million issue of 4.35% 30-year senior notes (A1/A+/A) on Tuesday with a spread of Treasuries plus 87.5 basis points, according to a market source and a FWP filed with the Securities and Exchange Commission.
The notes sold in line with guidance, which was set at 85 bps to 90 bps over Treasuries.
Pricing was at 99.684 to yield 4.369%.
Goldman Sachs & Co. was the bookrunner.
Proceeds will be used for general corporate purposes, which may include the repurchase of the company's outstanding securities and repayment or redemption of outstanding debt.
The insurance company is based in Mayfield Village, Ohio.
| Issuer: | Progressive Corp.
|
| Amount: | $350 million
|
| Description: | Senior notes
|
| Maturity: | April 25, 2044
|
| Bookrunner: | Goldman Sachs & Co.
|
| Coupon: | 4.35%
|
| Price: | 99.684
|
| Yield: | 4.369%
|
| Spread: | Treasuries plus 87.5 bps
|
| Price talk: | Treasuries plus 85 bps to 90 bps
|
| Make-whole call: | Treasuries plus 15 bps
|
| Trade date: | April 22
|
| Settlement date: | April 25
|
| Ratings: | Moody's: A1
|
| Standard & Poor's: A+
|
| Fitch: A
|
| Distribution: | SEC registered
|
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