By Cristal Cody
Tupelo, Miss., April 3 – Progressive Corp. priced $850 million of 4.125% 30-year guaranteed senior notes on Monday at 99.879 to yield 4.132%, or 115 basis points over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes (A2/A/A) were talked to price in the Treasuries plus 115 bps area, plus or minus 5 bps.
The bookrunners were Credit Suisse Securities (USA) LLC and BofA Merrill Lynch.
Proceeds will be used to redeem all $563.7 million of the company’s 6.7% fixed-to-floating rate junior subordinated debentures due 2067.
Progressive is an insurance company based in Mayfield Village, Ohio.
| Issuer: | Progressive Corp.
|
| Amount: | $850 million
|
| Description: | Senior notes
|
| Maturity: | April 15, 2047
|
| Bookrunners: | Credit Suisse Securities (USA) LLC and BofA Merrill Lynch
|
| Co-managers: | Goldman Sachs & Co. and Deutsche Bank Securities Inc.
|
| Coupon: | 4.125%
|
| Price: | 99.879
|
| Yield: | 4.132%
|
| Spread: | Treasuries plus 115 bps
|
| Call feature: | Make-whole call before Oct. 15, 2046 at Treasuries plus 20 bps; thereafter at par
|
| Trade date: | April 3
|
| Settlement date: | April 6
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Fitch: A
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 115 bps area, plus or minus 5 bps
|
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