New Issue: W.W. Grainger sells $400 million 3.75% 30-year notes at 117 bps over Treasuries

By Cristal Cody

Eureka Springs, Ark., May 9 – W.W. Grainger, Inc. sold $400 million of 3.75% 30-year senior notes on Monday at 99.322 to yield 3.788%, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes (A2/AA-) priced with a spread of 117 basis points over Treasuries. The bonds were talked at Treasuries plus 120 bps, plus or minus 3 bps.

Morgan Stanley & Co. LLC, HSBC Securities (USA) Inc. and Wells Fargo Securities, LLC were the bookrunners.

Proceeds will be used to repay commercial paper bearing a weighted average interest rate of 0.49% and maturing in less than 10 days.

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

Issuer:	W.W. Grainger, Inc.
Amount:	$400 million
Maturity:	May 15, 2046
Securities:	Senior notes
Bookrunners:	Morgan Stanley & Co. LLC, HSBC Securities (USA) Inc., Wells Fargo Securities, LLC
Co-managers:	Barclays, J.P. Morgan Securities LLC, U.S. Bancorp Investments, Inc.
Coupon:	3.75%
Price:	99.322
Yield:	3.788%
Spread:	Treasuries plus 117 bps
Call feature:	Make-whole call before Nov. 15, 2045 at greater of par and Treasuries plus 20 bps; on or after Nov. 15, 2045 at par
Pricing date:	May 9
Settlement date:	May 16
Ratings:	Moody’s: A2
	S&P: AA-
Distribution:	SEC registered
Price guidance:	Treasuries plus 120 bps, plus or minus 3 bps

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