By Andrea Heisinger
New York, Aug. 17 - VF Corp. priced $900 million of senior notes (A3/A-/) in two parts on Wednesday, a source close to the trade said.
A $400 million tranche of two-year floating-rate notes was sold at par to yield three-month Libor plus 75 basis points. The notes are non-callable.
There was also a $500 million tranche of 3.5% 10-year notes priced at 99.69 to yield 3.537% with a spread of 137.5 bps over Treasuries. This tranche has a make-whole call at 20 bps over Treasuries until June 1, 2021 and is callable afterward at par.
Both tranches feature a change-of-control put at 101%.
Active bookrunners were Bank of America Merrill Lynch and J.P. Morgan Securities LLC. Wells Fargo Securities LLC was a passive bookrunner.
Proceeds are being used, along with cash on hand and short-term borrowings, to pay for the acquisition of the Timberland Co.
There is a mandatory call at 101% if the acquisition is not done by March 12, 2012.
VF last priced bonds in a $600 million sale with maturities of 10 and 30 years on Oct. 10, 2007. The 5.95% 10-year notes from that trade were sold at 133 bps over Treasuries.
The lifestyle apparel company is based in Greensboro, N.C.
| Issuer: | VF Corp.
|
| Issue: | Senior notes
|
| Amount: | $900 million
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities LLC (active), Wells Fargo Securities LLC (passive)
|
| Change-of-control put: | 101%
|
| Mandatory redemption: | At 101% if acquisition not done by March 12, 2012
|
| Trade date: | Aug. 17
|
| Settlement date: | Aug. 24
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A-
|
|
|
| Two-year floaters
|
| Amount: | $400 million
|
| Maturity: | Aug. 23, 2013
|
| Coupon: | Three-month Libor plus 75 bps
|
| Price: | Par
|
| Yield: | Three-month Libor plus 75 bps
|
| Call: | Non-callable
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Sept. 1, 2021
|
| Coupon: | 3.5%
|
| Price: | 99.69
|
| Yield: | 3.537%
|
| Spread: | Treasuries plus 137.5 bps
|
| Call: | Make-whole at Treasuries plus 20 bps until June 1, 2021, after at par
|
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