By Cristal Cody
Tupelo, Miss., Feb. 20 – Vulcan Materials Co. priced $850 million of notes (Baa3/BBB/BBB-) in two tranches on Tuesday, according to a market source, a news release and an FWP filing with the Securities and Exchange Commission.
The company sold $500 million of three-year floating-rate notes in and SEC-registered offering at par to yield Libor plus 65 basis points.
The deal was upsized from $300 million and priced on the tight side of talk in the Libor plus 70 bps area.
Vulcan Materials also sold $350 million of 4.7% 30-year notes in a Rule 144A and Regulation S private placement at 99.887 to yield Treasuries plus 155 bps, on the tight side of guidance in the Treasuries plus 160 bps area.
Goldman Sachs & Co., U.S. Bancorp Investments Inc., Wells Fargo Securities LLC, BofA Merrill Lynch, Regions Securities LLC and SunTrust Robinson Humphrey Inc. were the bookrunners.
Proceeds will be used for general corporate purposes, including debt repayment.
Vulcan Materials is a Birmingham, Ala., producer of construction aggregates.
| Issuer: | Vulcan Materials Co.
|
| Amount: | $850 million
|
| Description: | Notes
|
| Bookrunners: | Goldman Sachs & Co., U.S. Bancorp Investments Inc., Wells Fargo Securities LLC, BofA Merrill Lynch, Regions Securities LLC and SunTrust Robinson Humphrey Inc.
|
| Co-managers: | FTN Financial Securities Corp., Synovus Securities Inc. and Williams Capital Group LP
|
| Trade date: | Feb. 20
|
| Settlement date: | Feb. 23
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB
|
| Fitch: BBB-
|
|
|
| Three-year floaters
|
| Amount: | $500 million
|
| Description: | Floating-rate notes
|
| Maturity: | March 1, 2021
|
| Coupon: | Libor plus 65 bps
|
| Price: | Par
|
| Yield: | Libor plus 65 bps
|
| Call features: | Non-callable
|
| Change-of-control put: | 101%
|
| Distribution: | SEC registered
|
| Price talk: | Libor plus 70 bps area
|
|
|
| 30-year notes
|
| Amount: | $350 million
|
| Maturity: | March 1, 2048
|
| Coupon: | 4.7%
|
| Price: | 99.887
|
| Spread: | Treasuries plus 155 bps
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | Treasuries plus 160 bps area
|
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