By Cristal Cody
Tupelo, Miss., Jan. 8 – Marsh & McLennan Cos., Inc. priced $5 billion of senior notes (Baa1/A-) in six tranches on top of guidance and better than initial talk on Tuesday, according to a market source.
The company sold $700 million of 3.5% notes due Dec. 29, 2020 at a spread of Treasuries plus 95 basis points.
A $300 million tranche of three-year floating-rate notes priced at Libor plus 120 bps.
A $1 billion tranche of 3.875% five-year notes came at a spread of 130 bps over Treasuries.
Marsh & McLennan priced $1.25 billion of 4.375% 10-year notes at a 165 bps over Treasuries spread.
The company sold $500 million of 4.75% 20-year notes at a spread of 175 bps over Treasuries.
In the final tranche, $1.25 billion of 4.9% 30-year notes priced at a Treasuries plus 190 bps spread.
Goldman Sachs & Co. LLC, BofA Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Barclays, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, MUFG, RBC Capital Markets LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used to finance a portion of the company’s planned acquisition of Jardine Lloyd Thompson Group plc.
The professional services firm is based in New York.
| Issuer: | Marsh & McLennan Cos., Inc.
|
| Amount: | $5 billion
|
| Description: | Senior notes
|
| Bookrunners: | Goldman Sachs & Co. LLC, BofA Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Barclays, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, MUFG, RBC Capital Markets LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC
|
| Trade date: | Jan. 8
|
| Ratings: | Moody’s: Baa1
|
| S&P: A-
|
| Distribution: | SEC registered
|
|
|
| Two-year notes
|
| Amount: | $700 million
|
| Maturity: | Dec. 29, 2020
|
| Coupon: | 3.5%
|
| Spread: | Treasuries plus 95 bps
|
| Price guidance: | Treasuries plus 95 bps; initial talk at Treasuries plus 120 bps-125 bps area
|
|
|
| Three-year floaters
|
| Amount: | $300 million
|
| Maturity: | Dec. 29, 2021
|
| Coupon: | Libor plus 120 bps
|
| Price guidance: | Libor plus 120 bps; initial talk at Libor plus 135 bps-140 bps area
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | March 15, 2024
|
| Coupon: | 3.875%
|
| Spread: | Treasuries plus 130 bps
|
| Price guidance: | Treasuries plus 130 bps; initial talk at Treasuries plus 150 bps-155 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | March 15, 2029
|
| Coupon: | 4.375%
|
| Spread: | Treasuries plus 165 bps
|
| Price guidance: | Treasuries plus 165 bps; initial talk at Treasuries plus 180 bps-185 bps area
|
|
|
| 20-year notes
|
| Amount: | $500 million
|
| Maturity: | March 15, 2039
|
| Coupon: | 4.75%
|
| Spread: | Treasuries plus 175 bps
|
| Price guidance: | Treasuries plus 175 bps; initial talk at Treasuries plus 190 bps-195 bps area
|
|
|
| 30-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | March 15, 2049
|
| Coupon: | 4.9%
|
| Spread: | Treasuries plus 190 bps
|
| Price guidance: | Treasuries plus 190 bps; initial talk at Treasuries plus 205 bps-210 bps area
|
© 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.
