By Cristal Cody
Tupelo, Miss., April 21 – VF Corp. priced $3 billion of senior notes (A3/A) in four tranches on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
A $1 billion offering of 2.05% two-year notes priced at a spread of 185 basis points over Treasuries, compared to initial talk in the 195 bps area. The notes were placed at 99.982 to yield 2.059%.
VF sold $750 million of 2.4% five-year notes at 99.827 to yield 2.437% and a Treasuries plus 210 bps spread.
The five-year notes were talked at the 220 bps spread area.
A $500 million tranche of 2.8% seven-year notes priced at 99.836 to yield 2.826% and a spread of 235 bps over Treasuries, compared to initial guidance in the 250 bps over Treasuries area.
In the final tranche, $750 million of 2.95% 10-year notes priced at 99.785 to yield 2.975%, or a Treasuries plus 240 bps spread.
The 10-year notes were initially talked to print at the 255 bps spread area.
Barclays, BofA Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, HSBC Securities (USA) Inc., ING Financial Markets LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC were the bookrunners.
Proceeds from the bond offering will be used to repay borrowings under the company’s senior revolving credit facility, with any remaining proceeds used for general corporate purposes.
The lifestyle apparel company is based in Greensboro, N.C.
| Issuer: | VF Corp.
|
| Amount: | $3 billion
|
| Description: | Senior notes
|
| Bookrunners: | Barclays, BofA Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, HSBC Securities (USA) Inc., ING Financial Markets LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC
|
| Senior co-managers: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, PNC Capital Markets LLC, SunTrust Robinson Humphrey, Inc. and TD Securities (USA) LLC
|
| Co-managers: | BNP Paribas Securities Corp., BNY Mellon Capital Markets, LLC, Santander Investment Securities Inc. and UniCredit Capital Markets LLC
|
| Trade date: | April 21
|
| Settlement date: | April 23
|
| Ratings: | Moody’s: A3
|
| S&P: A
|
| Distribution: | SEC registered
|
|
|
| Two-year notes
|
| Amount: | $1 billion
|
| Maturity: | April 23, 2022
|
| Coupon: | 2.05%
|
| Price: | 99.982
|
| Yield: | 2.059%
|
| Spread: | Treasuries plus 185 bps
|
| Call feature: | Make-whole at Treasuries plus 30 bps
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 195 bps area
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | April 23, 2025
|
| Coupon: | 2.4%
|
| Price: | 99.827
|
| Yield: | 2.437%
|
| Spread: | Treasuries plus 210 bps
|
| Call features: | Make-whole before March 23, 2025 at Treasuries plus 35 bps; thereafter at par
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 220 bps area
|
|
|
| Seven-year notes
|
| Amount: | $500 million
|
| Maturity: | April 23, 2027
|
| Coupon: | 2.8%
|
| Price: | 99.836
|
| Yield: | 2.826%
|
| Spread: | Treasuries plus 235 bps
|
| Call features: | Make-whole before Feb. 23, 2027 at Treasuries plus 40 bps; thereafter at par
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 250 bps area
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | April 23, 2030
|
| Coupon: | 2.95%
|
| Price: | 99.785
|
| Yield: | 2.975%
|
| Spread: | Treasuries plus 240 bps
|
| Call features: | Make-whole before Jan. 23, 2030 at Treasuries plus 40 bps; thereafter at par
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 255 bps area
|
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