Published on 1/15/2015 in the Prospect News Investment Grade Daily.
New Issue: Valspar sells $500 million of notes in 10-, 30-year tranches
By Aleesia Forni
Virginia Beach, Jan. 15 – The Valspar Corp. sold $500 million of senior notes (Baa2/BBB/) on Thursday in tranches due 2025 and 2045, according to a market source and an FWP filed with the Securities and Exchange Commission.
The sale included $250 million 3.3% notes due 2025 sold with a spread of 155 basis points. Pricing was at 99.745 to yield 3.33%.
There was also $250 million of 4.4% 30-year bonds priced at 98.962 to yield 4.463%, or Treasuries plus 205 basis points.
Both tranches sold at the tight end of talk.
BofA Merrill Lynch, Goldman Sachs & Co. and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used to repay the company’s $150 million outstanding principal amount of its 5.1% senior notes due Aug. 1, 2015 and for general corporate purposes, including the repayment of commercial paper.
The coating and paint manufacturer is based in Minneapolis.
| Issuer: | Valspar Corp.
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Bookrunners: | BofA Merrill Lynch, Goldman Sachs & Co., Wells Fargo Securities LLC
|
| Co-managers: | Deutsche Bank Securities Inc., MUFG, U.S. Bancorp Investments, Inc., HSBC Securities (USA) Inc., Lloyds Securities Inc., PNC Capital Markets LLC, ANZ Securities, Inc., ING Financial Markets LLC
|
| Trade date: | Jan. 15
|
| Settlement date: | Jan. 21
|
| Change-of-control put: | 101%
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: BBB
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $250 million
|
| Maturity: | Feb. 1, 2025
|
| Coupon: | 3.3%
|
| Price: | 99.745
|
| Yield: | 3.33%
|
| Spread: | Treasuries plus 155 bps
|
| Price talk: | 160 bps area, tightened from 180 bps area
|
| Make-whole call: | 25 bps prior to Nov. 1, 2024, then callable at par
|
|
|
| 30-year bonds
|
| Amount: | $250 million
|
| Maturity: | Feb. 1, 2045
|
| Coupon: | 4.4%
|
| Price: | 98.962
|
| Yield: | 4.463%
|
| Spread: | Treasuries plus 205 bps
|
| Price talk: | 210 bps area, tightened from 225 bps area
|
| Make-whole call: | 35 bps prior to Aug. 1, 2044, then callable at par
|
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