By Andrea Heisinger
Omaha, Oct. 11 - Darden Restaurants, Inc. priced $1.15 billion of senior notes (Baa3/BBB+) in three tranches, with full terms released Thursday in a Securities and Exchange Commission filing.
The $350 million tranche of 5.625% five-year notes priced at 99.699 to yield 5.695%, at a spread of Treasuries plus 133 basis points. Price talk was for a spread in the 135 bps area.
The $500 million tranche of 6.2% 10-year notes priced at 99.838% to yield 6.222%, at a spread of Treasuries plus 158 bps. Price talk was in the 160 bps area.
The $300 million tranche of 6.8% 30-year notes priced at 99.178 to yield 6.865%, at a spread of Treasuries plus 200 bps. Price talk was in the 200 to 205 bps area.
The issue was launched in tranches of five, seven and 10-year notes.
Banc of America Securities LLC was sole bookrunner.
Proceeds will be used to repay $1.15 billion of indebtedness outstanding under the company's interim credit facility.
The restaurant chain operator is based in Orlando, Fla.
| Issuer: | Darden Restaurants, Inc.
|
| Issue: | Senior notes
|
| Amount: | $1.15 billion
|
| Bookrunner: | Banc of America Securities LLC
|
| Trade date: | Oct. 10
|
| Settlement date: | Oct. 16
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB+
|
| Fitch: BBB
|
|
|
| Five-year tranche
|
| Amount: | $350 million
|
| Maturity: | Oct. 15, 2012
|
| Coupon: | 5.625%
|
| Price: | 99.699
|
| Yield: | 5.695%
|
| Spread: | Treasuries plus 133 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Price talk: | 135 bps area
|
|
|
| Ten-year tranche
|
| Amount: | $500 million
|
| Maturity: | Oct. 15, 2017 |
|
| Coupon: | 6.2%
|
| Price: | 99.838
|
| Yield: | 6.222%
|
| Spread: | Treasuries plus 158 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 160 bps area
|
|
|
| Thirty-year tranche
|
| Amount: | $300 million
|
| Maturity: | Oct. 15, 2037
|
| Coupon: | 6.8%
|
| Price: | 99.178
|
| Yield: | 6.865%
|
| Spread: | Treasuries plus 200 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
| Price talk: | 200 to 205 bps area
|
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