Published on 6/4/2015 in the Prospect News Investment Grade Daily.
New Issue: W.W. Grainger prices $1 billion 4.6% notes due 2045 at Treasuries plus 155 bps
By Aleesia Forni
Virginia Beach, June 4 – W.W. Grainger Inc. priced $1 billion of 4.6% 30-year senior notes (A2/AA) on Thursday at Treasuries plus 155 basis points, according to an FWP filed with the Securities and Exchange Commission.
Pricing was at 99.919 to yield 4.605%.
The notes sold at the tight end of guidance.
The bookrunners were Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC.
Proceeds will be used for general corporate purposes, including the repurchase of shares of the company’s common stock and the repayment of about $300 million of debt.
The industrial supply company is based in Lake Forest, Ill.
Issuer: | W.W. Grainger Inc.
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Amount: | $1 billion
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Description: | Senior notes
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Maturity: | June 15, 2045
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Bookrunners: | Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC
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Co-managers: | HSBC Securities (USA) Inc., Loop Capital Markets LLC, BofA Merrill Lynch, MUFG, RBC Capital Markets LLC, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC
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Coupon: | 4.6%
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Price: | 99.919
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Yield: | 4.605%
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Spread: | Treasuries plus 155 bps
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Make-whole call: | Treasuries plus 25 bps prior to Dec. 15, 2044, then callable at par
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Trade date: | June 4
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Settlement date: | June 11
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Ratings: | Moody’s: A2
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| Standard & Poor’s: AA
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Price guidance: | Treasuries plus 160 bps area, tightened from 170 bps area
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