By Andrea Heisinger
New York, July 25 - Travelers Cos., Inc. sold $500 million of 4.6% 30-year senior notes (A2/A/A) in Thursday's market at a spread of 95 basis points over Treasuries, an informed source said.
Pricing was at 99.742 to yield 4.616%. There is a make-whole call at Treasuries plus 15 bps.
BofA Merrill Lynch and Morgan Stanley & Co. LLC were the bookrunners.
Proceeds will be used for general corporate purposes and to fund a portion of the purchase price of the Dominion of Canada General Insurance Co. acquisition.
Travelers last tapped the U.S. bond market with a $1.25 billion offering of bonds in two tranches. That sale included a 5.35% 30-year maturity priced at 135 bps over Treasuries.
The holding company for commercial, property and casualty insurance subsidiaries is based in New York City.
| Issuer: | Travelers Cos., Inc.
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Maturity: | Aug. 1, 2043
|
| Bookrunners: | BofA Merrill Lynch, Morgan Stanley & Co. LLC
|
| Joint lead managers: | Citigroup Global Markets Inc., U.S. Bancorp Investments Inc.
|
| Senior co-manager: | HSBC Securities (USA) Inc.
|
| Co-managers: | Barclays, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Coupon: | 4.6%
|
| Price: | 99.742
|
| Yield: | 4.616%
|
| Spread: | Treasuries plus 95 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Trade date: | July 25
|
| Settlement date: | Aug. 1
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
| Fitch: A
|
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