Block's 10-year notes talked in the 375 bps area, to price Monday

By Andrea Heisinger

New York, Oct. 22 - Block Financial LLC is preparing a benchmark size offering of 10-year senior notes on Monday, a source away from the trade said.

The notes (Baa2/BBB/BBB) are talked in the Treasuries plus 375 basis points area.

There is a change-of-control put at 101% if the company falls below investment-grade ratings.

J.P. Morgan Securities LLC is the active bookrunner. Passive bookrunners are Credit Agricole Securities (USA) Inc., SunTrust Robinson Humphrey Inc. and TD Securities (USA) LLC.

Proceeds will be used to repurchase, tender, redeem or repay 7.875% senior notes due 2013 and for general corporate purposes.

The notes are guaranteed by H&R Block, Inc.

Block Financial was last in the bond market with a $600 million sale of 7.875% five-year notes priced at 481.9 bps over Treasuries on Jan. 9, 2008.

The tax preparation and financial services company is based in Kansas City, Mo.

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