By Andrea Heisinger
New York, June 15 - Lincoln National Corp. priced $750 million of senior unsecured notes (Baa2/A-/BBB) on Tuesday in two tranches, an informed source said.
A $250 million tranche of 4.3% five-year notes sold at 99.867 to yield 4.33% with a spread of Treasuries plus 225 basis points. The tranche has a make-whole call of Treasuries plus 35 bps.
The $500 million of 7% 30-year bonds priced at 99.789 to yield 7.017% with a spread of Treasuries plus 280 bps. The tranche has a make-whole call at Treasuries plus 45 bps.
Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and U.S. Bancorp Investments Inc. were the bookrunners, with J.P. Morgan Securities Inc. as the global coordinator. UBS Securities LLC and Wells Fargo Securities LLC were the co-managers.
Proceeds are being used to repurchase $950 million of preferred shares issued to the U.S. Treasury under the Capital Purchase Program.
The company is also selling $335 million of common shares.
The money management and investment company is based in Radnor, Pa.
| Issuer: | Lincoln National Corp.
|
| Issue: | Senior unsecured notes
|
| Amount: | $750 million
|
| Bookrunners: | Bank of America Merrill Lynch, Deutsche Bank Securities Inc., U.S. Bancorp Investments Inc.
|
| Global coordinator: | J.P. Morgan Securities Inc.
|
| Co-managers: | UBS Securities LLC, Wells Fargo Securities LLC
|
| Trade date: | June 15
|
| Settlement date: | June 18
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: A-
|
| Fitch: BBB
|
|
|
| Five-year notes
|
| Amount: | $250 million
|
| Maturity: | June 15, 2015
|
| Coupon: | 4.3%
|
| Price: | 99.867
|
| Yield: | 4.33%
|
| Spread: | Treasuries plus 225 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
|
|
| 30-year bonds
|
| Amount: | $500 million
|
| Maturity: | June 15, 2040
|
| Coupon: | 7%
|
| Price: | 99.789
|
| Yield: | 7.017%
|
| Spread: | Treasuries plus 280 bps
|
| Call: | Make-whole at Treasuries plus 45 bps
|
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