By Cristal Cody
Tupelo, Miss., June 1 – Ralph Lauren Corp. priced $1.25 billion of senior notes (A3/A-) in two tranches on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.
A $500 million offering of 1.7% two-year notes priced at 99.88 to yield 1.76%. The notes priced with a spread of 160 basis points over Treasuries.
The two-year notes were talked at the Treasuries plus 225 bps area.
Ralph Lauren sold $750 million of 2.95% 10-year notes at 98.995 to yield 3.067%, or a 240 bps over Treasuries spread.
The 10-year notes were initially guided to print at the 300 bps spread area.
BofA Securities Inc., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., ING Financial Markets LLC and SMBC Nikko Securities America Inc. were the bookrunners.
The company held fixed income investor calls on Thursday and Friday.
Proceeds will be used for general corporate purposes, including repaying the company’s $475 million of outstanding debt under its global credit facility and repaying all $300 million of its 2.625% senior notes due Aug. 18, 2020.
Ralph Lauren is a New York-based company that designs, markets and distributes apparel, home, accessories and fragrance products.
| Issuer: | Ralph Lauren Corp.
|
| Amount: | $1.25 billion
|
| Securities: | Senior notes
|
| Bookrunners: | BofA Securities Inc., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., ING Financial Markets LLC and SMBC Nikko Securities America Inc.
|
| Co-managers: | HSBC Securities (USA) Inc. and Goldman Sachs & Co. LLC
|
| Trade date: | June 1
|
| Settlement date: | June 3
|
| Ratings: | Moody’s: A3
|
| S&P: A-
|
| Distribution: | SEC registered
|
| Marketing: | Fixed income investor calls
|
|
|
| Two-year notes
|
| Amount: | $500 million
|
| Maturity: | June 15, 2022
|
| Coupon: | 1.7%
|
| Price: | 99.88
|
| Yield: | 1.76%
|
| Spread: | Treasuries plus 160 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 225 bps area
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | June 15, 2030
|
| Coupon: | 2.95%
|
| Price: | 98.995
|
| Yield: | 3.067%
|
| Spread: | Treasuries plus 240 bps
|
| Call features: | Make-whole call before March 15, 2029 at Treasuries plus 40 bps; thereafter at par
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 300 bps area
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
