Published on 5/13/2020 in the Prospect News Investment Grade Daily.
New Issue: Brighthouse Financial sells $500 million 5.625% 10-year notes at 500 bps spread
By Cristal Cody
Tupelo, Miss., May 13 – Brighthouse Financial Inc. priced $500 million of 5.625% 10-year senior notes (Baa3/BBB+/BBB) on top of talk on Wednesday at a spread of Treasuries plus 500 basis points, according to a market source.
Initial price talk was in the 500 bps over Treasuries area.
The notes priced at 99.871 to yield 5.642%.
Wells Fargo Securities LLC, Barclays, BofA Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, BNP Paribas Securities Corp., HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC, PNC Capital Markets LLC and U.S. Bancorp Investments, Inc. were the bookrunners.
Proceeds will be used to repay some of the $1 billion of borrowings under the company’s unsecured term loan facility.
Brighthouse is a Charlotte, N.C.-based insurance provider.
| Issuer: | Brighthouse Financial Inc.
|
| Amount: | $500 million
|
| Description: | Senior notes
|
| Maturity: | May 15, 2030
|
| Bookrunners: | Wells Fargo Securities LLC, Barclays, BofA Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, BNP Paribas Securities Corp., HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC, PNC Capital Markets LLC and U.S. Bancorp Investments, Inc.
|
| Co-managers: | Credit Agricole Securities (USA) Inc., Fifth Third Securities, Inc. and American Veterans Group, PBC
|
| Coupon: | 5.625%
|
| Price: | 99.871
|
| Yield: | 5.642%
|
| Spread: | Treasuries plus 500 bps
|
| Call features: | Make-whole before Feb. 15, 2030 at price equal to greater of par and Treasuries plus 50 bps; thereafter at par
|
| Trade date: | May 13
|
| Settlement date: | May 15
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB+
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 500 bps area
|
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