New Issue: Valspar sells $350 million 3.95% senior notes due 2026 at Treasuries plus 168 bps

By Aleesia Forni

Virginia Beach, July 22 – Valspar Corp. priced $350 million of 3.95% senior notes due Jan. 15, 2026 on Wednesday with a spread of Treasuries plus 168 basis points, according to a FWP filed with the Securities and Exchange Commission.

The notes (Baa2/BBB) sold at the tight end of guidance set in the 170 bps area over Treasuries. Initial talk was set in the range of Treasuries plus 185 bps to 190 bps.

Pricing was at 99.56 to yield 4.002%.

BofA Merrill Lynch, HSBC Securities, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC are the bookrunners.

Proceeds will be used to repay borrowings under the company’s term loan credit facility and for general corporate purposes.

The coating and paint manufacturer is based in Minneapolis.

Issuer:	Valspar Corp.
Amount:	$350 million
Description:	Senior notes
Maturity:	2026
Bookrunners:	BofA Merrill Lynch, HSBC Securities, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC
Co-managers:	Deutsche Bank Securities Inc., MUFG, Goldman, Sachs & Co., Lloyds Securities Inc.
Junior managers:	PNC Capital Markets LLC, ANZ Securities, Inc., ING Financial Markets Inc.
Coupon:	3.95%
Price:	99.56
Yield:	4.002%
Spread:	Treasuries plus 168 bps
Trade date:	July 22
Settlement date:	July 27
Change-of-control put:	101%
Ratings:	Moody’s: Baa2
	Standard & Poor’s: BBB
Price guidance:	Treasuries plus 170 bps area, tightened from Treasuries plus 185 bps to 190 bps
Make-whole call:	Treasuries plus 25 bps prior to Oct. 15, 2025, then callable at par
Distribution:	SEC-registered

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