By Cristal Cody
Tupelo, Miss., May 2 – Sherwin-Williams Co. priced $6 billion of senior notes (Baa3/BBB/BBB) in five tranches on Tuesday, according to a market source.
The company sold $1.5 billion of 2.25% three-year notes with a spread of 80 basis points over Treasuries.
Sherwin-Williams sold $1.25 billion of 2.75% five-year notes at Treasuries plus 95 bps.
The $500 million tranche of seven-year notes priced with a 3.125% coupon and a spread of Treasuries plus 105 bps.
In the 10-year tranche, Sherwin-Williams sold $1.5 billion of 3.45% notes with a Treasuries plus 120 bps spread.
The final tranche of $1.25 billion 4.5% 30-year notes priced with a spread of 155 bps over Treasuries.
The notes all priced on the tight side of guidance.
Citigroup Global Markets Inc., Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and PNC Capital Markets LLC were the bookrunners.
The notes are redeemable at the greater of a make-whole call and a par call, according to a 424B5 filing with the Securities and Exchange Commission.
Proceeds will be used to finance the purchase price of the company’s planned acquisition of Valspar Corp.
Sherwin-Williams is a Cleveland-based developer, manufacturer and distributor of paints and related products.
| Issuer: | Sherwin-Williams Co.
|
| Amount: | $6 billion
|
| Securities: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and PNC Capital Markets LLC
|
| Trade date: | May 2
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | May 15, 2020
|
| Coupon: | 2.25%
|
| Spread: | 80 bps over Treasuries
|
| Price guidance: | Treasuries plus 85 bps area, plus or minus 5 bps
|
|
|
| Five-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | June 1, 2022
|
| Coupon: | 2.75%
|
| Spread: | 95 bps over Treasuries
|
| Price guidance: | Treasuries plus 100 bps area, plus or minus 5 bps
|
|
|
| Seven-year notes
|
| Amount: | $500 million
|
| Maturity: | June 1, 2024
|
| Coupon: | 3.125%
|
| Spread: | 105 bps over Treasuries
|
| Price guidance: | Treasuries plus 110 bps area, plus or minus 5 bps
|
|
|
| 10-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | June 1, 2027
|
| Coupon: | 3.45%
|
| Spread: | 120 bps over Treasuries
|
| Price guidance: | Treasuries plus 125 bps area, plus or minus 5 bps
|
|
|
| 30-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | June 1, 2047
|
| Coupon: | 4.5%
|
| Spread: | 155 bps over Treasuries
|
| Price guidance: | Treasuries plus 160 bps area, plus or minus 5 bps
|
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