By Andrea Heisinger
New York, Oct. 27 - Travelers Cos. Inc. priced an upsized $1.25 billion of senior notes (A2/A-/A) in two tranches on Wednesday, a source who worked on the sale said.
The size was increased from $1 billion.
The $500 million of 3.9% 10-year notes priced at 99.91 to yield 3.911% with a spread of 120 basis points over Treasuries. The notes were talked in the range of 120 bps to 125 bps, and priced at the tight end of that range.
The tranche has a make-whole call at 15 bps over Treasuries.
A $750 million tranche of 5.35% 30-year bonds sold at 99.379 to yield 5.392% with a spread of Treasuries plus 135 bps. The bonds were sold at the tight end of price guidance in the range of 135 bps to 140 bps.
The bonds have a make-whole call at Treasuries plus 20 bps.
Bookrunners were Barclays Capital Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and Wells Fargo Securities LLC.
Co-managers were HSBC Securities (USA) Inc., Morgan Stanley & Co. Inc. and UBS Securities LLC.
Proceeds are going toward general corporate purposes, including funding a tender offer for any and all of $1 billion outstanding subordinated debentures, and to pay a portion of outstanding debt maturing over the next few years.
Travelers last priced debt in a $500 million sale of 5.9% 10-year notes at 225 bps over Treasuries on May 28, 2009. The company doesn't have any recent outstanding 30-year bonds.
The holding company for commercial, property and casualty insurance subsidiaries is based in New York City.
| Issuer: | Travelers Cos. Inc.
|
| Issue: | Senior notes
|
| Amount: | $1.25 billion, increased from $1 billion
|
| Bookrunners: | Barclays Capital Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Co-managers: | HSBC Securities (USA) Inc., Morgan Stanley & Co. Inc., UBS Securities LLC
|
| Trade date: | Oct. 27
|
| Settlement date: | Nov. 1
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A-
|
| Fitch: A
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Nov. 1, 2020
|
| Coupon: | 3.9%
|
| Price: | 99.91
|
| Yield: | 3.911%
|
| Spread: | Treasuries plus 120 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Price talk: | 120 to 125 bps
|
|
|
| 30-year bonds
|
| Amount: | $750 million
|
| Maturity: | Nov. 1, 2040
|
| Coupon: | 5.35%
|
| Price: | 99.379
|
| Yield: | 5.392%
|
| Spread: | Treasuries plus 135 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Price talk: | 135 to 140 bps
|
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