New Issue: W.W. Grainger sells $500 million 1.85% five-year notes at Treasuries plus 60 bps

By Cristal Cody

Tupelo, Miss., Feb. 21 – W.W. Grainger, Inc. priced $500 million of 1.85% five-year senior notes at 99.722 to yield 1.909% and a spread of Treasuries plus 60 basis points on Friday, according to a market source and an FWP filing with the Securities and Exchange Commission.

Initial price talk on the notes due Feb. 15, 2025 (A3/A+) was in the Treasuries plus 65 bps area.

BofA Securities, Inc., J.P. Morgan Securities LLC, Citigroup Global Markets Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be used to repay debt and the remainder for general corporate purposes.

The industrial supply company is based in Lake Forest, Ill.

Issuer:	W.W. Grainger, Inc.
Amount:	$500 million
Description:	Senior notes
Maturity:	Feb. 15, 2025
Bookrunners:	BofA Securities, Inc., J.P. Morgan Securities LLC, Citigroup Global Markets Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC
Co-managers:	Loop Capital Markets LLC, PNC Capital Markets LLC, RBC Capital Markets, LLC, BBVA Securities Inc., Lloyds Securities Inc. and TD Securities (USA) LLC
Coupon:	1.85%
Price:	99.722
Yield:	1.909%
Spread:	Treasuries plus 60 bps
Call feature:	Make-whole call before Feb. 15, 2025 at Treasuries plus 10 bps; thereafter at par
Trade date:	Feb. 21
Settlement date:	Feb. 26
Ratings:	Moody’s: A3
	S&P: A+
Distribution:	SEC registered
Price guidance:	Treasuries plus 65 bps area

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