By Andrea Heisinger
New York, June 16 - Prudential Financial, Inc. priced $1 billion of notes (Baa2/A/BBB) in two tranches on Wednesday, a source who worked on the sale said.
The deal was massively oversubscribed with about $7.5 billion on the books.
The $650 million of 5.375% 10-year notes priced at 99.39 to yield 5.455% with a spread of Treasuries plus 220 basis points. The tranche came at the tight end of guidance in the 225 bps area.
A $350 million tranche of 6.625% 30-year notes priced at 99.922 to yield 6.631% with a spread of Treasuries plus 245 bps. This tranche also came at the tight end of guidance in the 250 bps area.
Both tranches have a make-whole call at Treasuries plus 35 bps.
Citigroup Global Markets Inc., J.P. Morgan Securities Inc. and Wells Fargo Securities Inc. were the bookrunners.
Proceeds are being used for general corporate purposes, including loans and capital contributions to affiliates.
The insurance and financial services company is based in Newark, N.J.
| Issuer: | Prudential Financial, Inc.
|
| Issue: | Notes
|
| Amount: | $1 billion
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities Inc., Wells Fargo Securities Inc.
|
| Trade date: | June 16
|
| Settlement date: | June 21
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: A
|
| Fitch: BBB
|
|
|
| 10-year notes
|
| Amount: | $650 million
|
| Maturity: | June 21, 2020
|
| Coupon: | 5.375%
|
| Price: | 99.39
|
| Yield: | 5.455%
|
| Spread: | Treasuries plus 220 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
| Price talk: | 225 bps area
|
|
|
| 30-year notes
|
| Amount: | $350 million
|
| Maturity: | June 21, 2040
|
| Coupon: | 6.625%
|
| Price: | 99.922
|
| Yield: | 6.631%
|
| Spread: | Treasuries plus 245 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
| Price talk: | 250 bps area
|
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