Published on 8/12/2020 in the Prospect News Investment Grade Daily.
New Issue: CNA Financial details $500 million 2.05% notes due 2030 priced to yield 2.078%
By Devika Patel
Knoxville, Tenn., Aug. 12 – CNA Financial Corp. offered further details, including the price and yield, about a $500 million sale of 2.05% 10-year senior notes (Baa2/BBB+) that priced on Tuesday at a spread of Treasuries plus 145 basis points, according to an FWP filed with the Securities and Exchange Commission.
The notes priced at 99.748 to yield 2.078%.
Price talk was at the Treasuries plus 180 bps area.
J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, BofA Securities, Inc., Citigroup Global Markets Inc., Barclays, U.S. Bancorp Investments Inc., Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. LLC were the bookrunners.
The Chicago-based commercial property and casualty insurance company will use the proceeds to redeem, repurchase or repay its $400 million of outstanding 5.75% notes due Aug. 15, 2021 and for general corporate purposes.
| Issuer: | CNA Financial Corp.
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| Amount: | $500 million
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| Description: | Senior notes
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| Maturity: | Aug. 15, 2030
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| Bookrunners: | J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, BofA Securities, Inc., Citigroup Global Markets Inc., Barclays, U.S. Bancorp Investments Inc., Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. LLC
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| Co-managers: | Samuel A. Ramirez & Co. Inc. and Siebert Williams Shank & Co. LLC
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| Coupon: | 2.05%
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| Price: | 99.748
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| Yield: | 2.078%
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| Spread: | Treasuries plus 145 bps
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| Call: | Make-whole call at Treasuries plus 25 bps until May 15, 2030, then a par call
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| Trade date: | Aug. 11
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| Settlement date: | Aug. 14
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| Ratings: | Moody’s: Baa2
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| S&P: BBB+
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| Distribution: | SEC registered
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| Price guidance: | Treasuries plus 180 bps area
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