By Sheri Kasprzak
New York, Feb. 27 - Wyndham Worldwide Inc. priced $800 million of senior notes (Baa3/BBB-/), according to a pricing sheet. The deal was upsized from $600 million.
The offering included $300 million of five-year notes and $500 million of 10-year notes.
The 2.95% five-year notes priced to yield Treasuries plus 215 basis points. The notes were priced at 99.789 to yield 2.996%. The notes feature a make-whole call at Treasuries plus 35 bps.
The 4.25% 10-year notes priced at a spread of Treasuries plus 235 bps. The notes were priced at 99.807 to yield 4.274%. The notes feature a make-whole call at Treasuries plus 35 bps.
J.P. Morgan Securities LLC was the bookrunner for the notes.
Deutsche Bank Securities Inc. and RBS Securities Inc. were the co-managers for the 2017 notes, and Goldman Sachs & Co. and Credit Suisse (USA) LLC were the co-managers for the 2022 notes.
Proceeds will be used to repurchase any and all of the $250 million outstanding on the company's 9.875% notes due in 2014 and a portion of the $800 million outstanding of 6% senior notes due in 2016 and the $250 million outstanding on its 7.375% notes due in 2020. The remainder will be used to repay borrowings under a revolving credit facility and for general corporate purposes.
Wyndham, based in Parsippany, N.J., is a hospitality company.
| Issuer: | Wyndham Worldwide Inc.
|
| Issue: | Senior notes
|
| Amount: | $800 million
|
| Bookrunner: | J.P. Morgan Securities LLC
|
| Trade date: | Feb. 27
|
| Settlement date: | March 7
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
|
|
| Five-year notes
|
| Amount: | $300 million
|
| Maturity: | March 1, 2017
|
| Co-managers: | Deutsche Bank Securities Inc., RBS Securities Inc.
|
| Coupon: | 2.95%
|
| Price: | 99.789
|
| Yield: | 2.996%
|
| Spread: | Treasuries plus 215 bps
|
| Call: | Make-whole call at Treasuries plus 35 bps
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | March 1, 2022
|
| Co-managers: | Goldman Sachs & Co., Credit Suisse Securities (USA) LLC
|
| Coupon: | 4.25%
|
| Price: | 99.807
|
| Yield: | 4.274%
|
| Spread: | Treasuries plus 235 bps
|
| Call: | Make-whole call at Treasuries plus 35 bps
|
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