By Cristal Cody
Tupelo, Miss., May 8 – Lincoln National Corp. priced $800 million of senior notes (Baa1/A-/BBB+) in two tranches on Friday, according to a market source and an FWP filing with the Securities and Exchange Commission.
A $500 million tranche of 3.4% notes due Jan. 15, 2031 priced at 99.781 to yield 3.425%, or a spread of 275 basis points over Treasuries.
Initial guidance was in the 300 bps over Treasuries area.
Lincoln National sold $300 million of 4.375% 30-year notes at 99.912 to yield 4.38% and a Treasuries plus 300 bps spread.
The notes were talked to price at the 325 bps spread area.
BNP Paribas Securities Corp., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, PNC Capital Markets LLC, TD Securities (USA) LLC, Barclays and Deutsche Bank Securities Inc. were the bookrunners.
Proceeds will be used to redeem the company’s 2021 notes and to repay its term loan due March 2022, and any remaining funds will be used for general corporate purposes.
Lincoln National is a Radnor, Pa.-based holding company for insurance and retirement subsidiaries.
| Issuer: | Lincoln National Corp.
|
| Amount: | $800 million
|
| Description: | Senior notes
|
| Bookrunners: | BNP Paribas Securities Corp., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, PNC Capital Markets LLC, TD Securities (USA) LLC, Barclays and Deutsche Bank Securities Inc.
|
| Trade date: | May 8
|
| Settlement date: | May 15
|
| Ratings: | Moody’s: Baa1
|
| S&P: A-
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| Notes due 2031
|
| Amount: | $500 million
|
| Maturity: | Jan. 15, 2031
|
| Coupon: | 3.4%
|
| Price: | 99.781
|
| Yield: | 3.425%
|
| Spread: | Treasuries plus 275 bps
|
| Call features: | Make-whole call before Oct. 15, 2030 at greater of par and Treasuries plus 45 bps; thereafter at par
|
| Price guidance: | Treasuries plus 300 bps area
|
|
|
| Notes due 2050
|
| Amount: | $300 million
|
| Maturity: | June 15, 2050
|
| Coupon: | 4.375%
|
| Price: | 99.912
|
| Yield: | 4.38%
|
| Spread: | Treasuries plus 300 bps
|
| Call features: | Make-whole call before Dec. 15, 2049 at greater of par and Treasuries plus 45 bps; thereafter at par
|
| Price guidance: | Treasuries plus 325 bps area
|
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