Published on 5/2/2013 in the Prospect News Investment Grade Daily.
New Issue: Loews prices $1 billion of senior notes in 10-, 30-year maturities
By Andrea Heisinger
New York, May 2 - Loews Corp. tapped Thursday's market for $1 billion of senior notes (A2/A+/A+) in two tranches, an informed source said.
A $500 million tranche of 2.625% 10-year notes sold at 99.554 to yield 2.676% with a spread of Treasuries plus 105 bps. Guidance was in the 110 bps area, plus or minus 5 bps.
There is a make-whole call at Treasuries plus 15 bps until Feb. 15, 2023 and a par call after that date.
The $500 million of 4.125% 30-year bonds priced at 98.844 to yield 4.193% with a spread of 135 bps over Treasuries. Talk was in the 140 bps area, plus or minus 5 bps.
The bonds have a make-whole call at 20 bps over Treasuries until Nov. 15, 2042, with a par call after that date.
Barclays and J.P. Morgan Securities LLC were the active bookrunners. Passive bookrunners were BofA Merrill Lynch, Citigroup Global Markets Inc. and Wells Fargo Securities LLC.
Proceeds will be used for general corporate purposes.
Loews is a New York City-based holding company for diversified subsidiaries, including insurance, hotels, oil drilling and pipeline transportation.
| Issuer: | Loews Corp.
|
| Issue: | Senior notes
|
| Amount: | $1 billion
|
| Bookrunners: | Barclays, J.P. Morgan Securities LLC (active), BofA Merrill Lynch, Citigroup Global Markets Inc., Wells Fargo Securities LLC (passive)
|
| Co-managers: | BB&T Capital Markets LLC, Mizuho Securities USA Inc., Mitsubishi UFJ Securities (USA), Inc., RBC Capital Markets LLC, UBS Securities LLC
|
| Trade date: | May 2
|
| Settlement date: | May 7
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A+
|
| Fitch: A+
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | May 15, 2023
|
| Coupon: | 2.625%
|
| Price: | 99.554
|
| Yield: | 2.676%
|
| Spread: | Treasuries plus 105 bps
|
| Call: | Make-whole at Treasuries plus 15 bps to Feb. 15, 2023, par call after
|
| Price talk: | 110 bps area, plus or minus 5 bps
|
|
|
| 30-year bonds
|
| Amount: | $500 million
|
| Maturity: | May 15, 2043
|
| Coupon: | 4.125%
|
| Price: | 98.844
|
| Yield: | 4.193%
|
| Spread: | Treasuries plus 135 bps
|
| Call: | Make-whole at Treasuries plus 20 bps to Nov. 15, 2042, par call after
|
| Price talk: | 140 bps area, plus or minus 5 bps
|
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