By Cristal Cody
Tupelo, Miss., June 12 – Vulcan Materials Co. priced $1 billion of senior notes (Baa3/BBB/BBB-) in three tranches on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company sold $250 million of three-year floating-rate notes at par to yield Libor plus 60 basis points.
Vulcan Materials sold $50 million in a reopening of its 3.9% notes due April 1, 2027 at 103.54 to yield 3.461% and a Treasuries plus 125 bps spread.
Vulcan Materials originally sold $350 million of the notes on March 9 at 99.603 to yield 3.948% and a spread of 135 bps over Treasuries. The total outstanding now is $400 million.
In the final tranche, the company priced $700 million of 4.5% 30-year notes at 99.624 to yield 4.523%, or a spread of 165 bps over Treasuries.
The notes priced on the tight side of guidance.
BofA Merrill Lynch, Goldman Sachs & Co., SunTrust Robinson Humphrey Inc., Regions Securities LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used for the acquisition of Aggregates USA, the planned redemption of the company's 7% notes due 2018 and the planned redemption of its 10.375% notes due 2018.
Vulcan makes construction materials and is based in Birmingham, Ala.
| Issuer: | Vulcan Materials Co.
|
| Amount: | $1 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, Goldman Sachs & Co., SunTrust Robinson Humphrey Inc., Regions Securities LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC
|
| Co-managers: | FTN Financial Securities Corp., Synovus Securities Inc. and Williams Capital Group LP
|
| Change-of-control put: | 101%
|
| Trade date: | June 12
|
| Settlement date: | June 15
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
|
|
| Three-year floaters
|
| Amount: | $250 million
|
| Maturity: | June 15, 2020
|
| Coupon: | Libor plus 60 bps
|
| Price: | Par
|
| Yield: | Libor plus 60 bps
|
| Call feature: | Special mandatory redemption trigger at 101
|
| Price guidance: | Libor plus 65 bps area, plus or minus 5 bps
|
|
|
| Notes due 2027
|
| Amount: | $50 million reopening
|
| Maturity: | April 1, 2027
|
| Coupon: | 3.9%
|
| Price: | 103.54
|
| Yield: | 3.461%
|
| Spread: | Treasuries plus 125 bps
|
| Price guidance: | Treasuries plus 130 bps area, plus or minus 5 bps
|
| Call features: | Make-whole call at greater of par and Treasuries plus 25 bps; on or after Jan. 1, 2027 at par
|
| Total outstanding: | $400 million
|
|
|
| 30-year notes
|
| Amount: | $700 million
|
| Maturity: | June 15, 2047
|
| Coupon: | 4.5%
|
| Price: | 99.624
|
| Yield: | 4.523%
|
| Spread: | Treasuries plus 165 bps
|
| Price guidance: | Treasuries plus 170 bps area, plus or minus 5 bps
|
| Call features: | Make-whole call at greater of par and Treasuries plus 25 bps; on or after Dec. 15, 2046 at par
|
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