By Mary-Katherine Stinson and Cristal Cody
Columbus, Ohio, Oct. 5 – UL Solutions Inc. sold $300 million of 6.5% senior notes due Oct. 20, 2028 (Baa3/BBB/BBB+) on Thursday at a spread of 185 basis points over Treasuries, according to details of the sale from a market source and a news release.
Price talk had been in the 200 bps to 212.5 bps area over Treasuries.
The notes will be guaranteed by the company’s wholly owned subsidiary, UL LLC.
As previously reported, the notes may be redeemed, in whole or in part, at any time prior to Sept. 20, 2028, at par plus a premium, and at any time thereafter at par plus, in each case, accrued interest, if any.
Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are the bookrunners.
The company intends to use the cash proceeds, together with borrowings under its credit facility and cash on hand, to fund a $600 million special dividend to UL Standards & Engagement, the sole stockholder of the company, and to pay fees and expenses incurred in connection with the offering.
Distribution is through Rule 144A and Regulation S.
The global safety science company is based in Northbrook, Ill.
| Issuer: | UL Solutions Inc.
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| Guarantor: | UL LLC
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| Amount: | $300 million
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| Issue: | Senior notes
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| Maturity: | Oct. 20, 2028
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| Bookrunners: | Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC
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| Coupon: | 6.5%
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| Spread: | Treasuries plus 185 bps
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| Call: | In whole or in part, at any time prior to Sept. 20, 2028, at par plus premium; at any time thereafter at par
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| Pricing date: | Oct. 5
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| Settlement date: | Oct. 20
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| Ratings: | Moody’s: Baa3
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| S&P: BBB
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| Fitch: BBB+
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | Treasuries plus 200 bps to 212.5 bps area
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