By Cristal Cody
Tupelo, Miss., May 12 – Aon Corp. sold $1 billion of 2.8% 10-year guaranteed senior notes (Baa2/A-/BBB+) on Tuesday at a spread of 212.5 basis points over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.
Initial price talk was in the 240 bps spread area.
The notes priced at 99.965 to yield 2.804%.
Bookrunners were Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, Barclays and J.P. Morgan Securities LLC.
The notes are guaranteed by Aon plc (Ireland), Aon plc (UK) and Aon Global Holdings plc (UK).
Aon expects to use $600 million of the proceeds to repay its outstanding 5% senior notes due Sept. 30, 2020 and for other general corporate purposes.
Aon is a London-based provider of risk management, insurance and reinsurance brokerage and also human resources solutions and outsourcing services.
| Issuer: | Aon Corp.
|
| Guarantors: | Aon plc (Ireland), Aon plc (UK) and Aon Global Holdings plc (UK)
|
| Amount: | $1 billion
|
| Description: | Senior notes
|
| Maturity: | May 15, 2030
|
| Bookrunners: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, Barclays and J.P. Morgan Securities LLC
|
| Co-managers: | Aon Securities Inc., BMO Capital Markets Corp., ING Financial Markets LLC, PNC Capital Markets LLC, UniCredit Capital Markets LLC and U.S. Bancorp Investments, Inc.
|
| Coupon: | 2.8%
|
| Price: | 99.965
|
| Yield: | 2.804%
|
| Spread: | Treasuries plus 212.5 bps
|
| Call features: | Make-whole call at Treasuries plus 35 bps before Feb. 15, 2030; thereafter at par
|
| Trade date: | May 12
|
| Settlement date: | May 15
|
| Ratings: | Moody’s: Baa2
|
| S&P: A-
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 240 bps area
|
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