Published on 5/8/2020 in the Prospect News Investment Grade Daily.
New Issue: Ingredion prices $1 billion of fixed-rate senior notes in two tranches
By Cristal Cody
Tupelo, Miss., May 8 – Ingredion Inc. priced $1 billion of senior notes (Baa1/BBB) in two parts on Friday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company sold $600 million of 2.9% 10-year notes at 99.808 to yield 2.922%, or a spread of Treasuries plus 225 basis points.
Initial price talk was in the 245 bps spread area.
A $400 million tranche of 3.9% 30-year notes priced at 98.551 to yield 3.983%, or Treasuries plus 260 bps.
The notes were talked to print in the 275 bps over Treasuries area.
BofA Securities Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, HSBC Securities (USA) Inc. and Mizuho Securities USA Inc. were the lead managers.
Proceeds will be used to repay debt under a $1 billion revolving credit facility and 4.625% notes due 2020 with any remaining proceeds to be used for general corporate purposes.
The maker of starches and sweeteners is based in Westchester, Ill.
| Issuer: | Ingredion Inc.
|
| Amount: | $1 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, HSBC Securities (USA) Inc. and Mizuho Securities USA Inc.
|
| Co-managers: | BMO Capital Markets Corp., PNC Capital Markets LLC, SunTrust Robinson Humphrey, Inc., U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC, ING Financial Markets LLC, Rabo Securities USA, Inc. and Santander Investment Securities Inc.
|
| Trade date: | May 8
|
| Settlement date: | May 13
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $600 million
|
| Maturity: | June 1, 2030
|
| Coupon: | 2.9%
|
| Price: | 99.808
|
| Yield: | 2.922%
|
| Spread: | Treasuries plus 225 bps
|
| Call features: | Make-whole call before March 1, 2030 at Treasuries plus 35 bps; thereafter at par
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 245 bps area
|
|
|
| 30-year notes
|
| Amount: | $400 million
|
| Maturity: | June 1, 2050
|
| Coupon: | 3.9%
|
| Price: | 98.551
|
| Yield: | 3.983%
|
| Spread: | Treasuries plus 260 bps
|
| Call features: | Make-whole call before Dec. 1, 2049 at Treasuries plus 40 bps; thereafter at par
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 275 bps area
|
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