3M takes in early tenders for $304.91 million of notes; pricing set

By Susanna Moon

Chicago, Oct. 5 – 3M Co. said investors had tendered $194,719,000 of its 5.7% notes due 2037 and $110,193,000 of its 6.375% debentures due 2028 as of the early tender deadline at 5 p.m. ET on Oct. 4.

3M accepted all of the early tendered notes for purchase, according to a company notice on Thursday.

The company said on Sept. 21 that it was tendering for up to $400 million principal amount of the two note series until midnight at the end of Oct. 19.

The total purchase price for each $1,000 principal amount was set at 11 a.m. ET on Oct. 5 using the bid side price of a reference security plus a fixed spread as follows, with the notes listed in order of priority acceptance levels:

• $1,327.60 for the $750 million 5.7% notes due 2037, pricing will be set using the 3% U.S. Treasury note due May 15, 2047 plus 50 basis points for a reference yield of 2.886%; and

• $1,304.15 for the $330 million 6.375% debentures, pricing will be based on the 2.25% U.S. Treasury note due Aug. 15, 2027 plus 60 bps for a reference yield of 2.346%.

The total purchase price includes an early tender premium of $50 for each $1,000 principal amount of notes tendered by the early deadline.

Holders also will receive accrued interest to but excluding the settlement date, which is expected to be Oct. 6 for early tendered notes.

Priority will be given to notes tendered before the early deadline regardless of priority level, according to a company announcement.

3M said it reserves the right to increase, decrease or eliminate the tender cap at any time without extending the withdrawal deadline of 5 p.m. ET on Oct. 4.

The company said it expects to fund the tender using proceeds of it planned debt financing, cash on hand or available liquidity.

As reported, 3M plans to sell three tranches of notes with any remaining proceeds to be used for the company’s planned acquisition of Scott Safety and for general corporate purposes.

J.P. Morgan Securities LLC is the dealer manager at (866 834-4666, 212 834-3260 or dfking.com/mmm). D.F. King & Co., Inc. (800 330-5897 or 212 269-5550) is the tender agent and information agent.

3M is a Maplewood, Minn.-based global company that produces products including Post-it notes and Scotch tape.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.