Published on 10/16/2013 in the Prospect News Investment Grade Daily.
New Issue: Wrigley prices $3 billion of notes in five tranches
By Aleesia Forni
Virginia Beach, Oct. 16 - WM. Wrigley Jr. Co. sold $3 billion of new bonds (Baa2/BBB/) on Wednesday in five tranches, according to a source close to the trade.
All five tranches were sold at the tight end of talk.
The deal included $400 million 1.4% three-year notes priced at Treasuries plus 80 basis points. Pricing was at 99.889 to yield 1.438%.
There was also $400 million 2% four-year notes sold with a spread of Treasuries plus 65 bps, or 99.847 to yield 2.04%.
A $550 million issue of 2.4% five-year notes priced at Treasuries plus 105 bps. The notes were sold at 99.813 to yield 2.44%.
The company also sold a $750 million tranche of 2.9% six-year notes with a spread of Treasuries plus 155 bps, or 99.781 to yield 2.94%.
Finally, $900 million of 3.375% seven-year notes priced at 99.901 to yield 3.391%, or Treasuries plus 135 bps.
The deal was sold under Rule 144A and Regulation S.
The candy and food products company is based in Chicago.
| Issuer: | WM. Wrigley Jr. Co.
|
| Issue: | Notes
|
| Amount: | $3 billion
|
| Joint bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc., Rabo Securities USA Inc.
|
| Co-managers: | ANZ Securities Inc., BNP Paribas Securities Corp., HSBC Securities (UA) Inc., Mitsubishi UFJ Securities (USA) Inc., Morgan Stanley & Co. LLC, RBS Securities Inc., SMBC Nikko Securities America Inc.
|
| Trade date: | Oct. 16
|
| Settlement date: | Oct. 21
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Three-year notes
|
| Amount: | $400 million
|
| Maturity: | Oct. 21, 2016
|
| Coupon: | 1.4%
|
| Price: | 99.889
|
| Yield: | 1.438%
|
| Spread: | Treasuries plus 80 bps
|
| Price talk: | Treasuries plus 85 bps area
|
| Make-whole call: | Treasuries plus 12 bps
|
|
|
| Four-year notes
|
| Amount: | $400 million
|
| Maturity: | Oct. 20, 2017
|
| Coupon: | 2%
|
| Price: | 99.847
|
| Yield: | 2.04%
|
| Spread: | Treasuries plus 65 bps
|
| Price talk: | Treasuries plus 70 bps area
|
| Make-whole call: | Treasuries plus 10 bps
|
|
|
| Five-year notes
|
| Amount: | $550 million
|
| Maturity: | Oct. 21, 2018
|
| Coupon: | 2.4%
|
| Price: | 99.813
|
| Yield: | 2.44%
|
| Spread: | Treasuries plus 105 bps
|
| Price talk: | Treasuries plus 110 bps area
|
| Make-whole call: | Treasuries plus 20 bps prior to Sept. 21, 2018
|
|
|
| Six-year notes
|
| Amount: | $750 million
|
| Maturity: | Oct. 21, 2019
|
| Coupon: | 2.9%
|
| Price: | 99.781
|
| Yield: | 2.94%
|
| Spread: | Treasuries plus 155 bps
|
| Price talk: | Treasuries plus 160 bps area
|
| Make-whole call: | Treasuries plus 25 bps prior to Sept. 21, 2019
|
|
|
| Seven-year notes
|
| Amount: | $900 million
|
| Maturity: | Oct. 21, 2020
|
| Coupon: | 3.375%
|
| Price: | 99.901
|
| Yield: | 3.391%
|
| Spread: | Treasuries plus 135 bps
|
| Price talk: | Treasuries plus 140 bps area
|
| Make-whole call: | Treasuries plus 20 bps prior to Sept. 21, 2020
|
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