By Aleesia Forni
New York, Feb. 19 – CNA Financial Corp. sold a downsized $400 million issue of 4.5% 10-year senior notes (Baa2/BBB/BBB) on Friday with a spread of Treasuries plus 275 basis points, according to a market source and an FWP filed with the Securities and Exchange Commission.
Pricing was at 99.975 to yield 4.503%.
The notes sold wide of price talk set in the Treasuries plus 260 bps area.
The deal was downsized from $500 million.
Bookrunners were Citigroup Global Markets Inc., J.P. Morgan Securities LLC, U.S. Bancorp Investments, Inc., Barclays, BofA Merrill Lynch and Wells Fargo Securities LLC.
Proceeds will be used to repay the company’s $350 million of 6.5% senior notes due Aug. 15, 2016.
The insurance company is based in Chicago.
| Issuer: | CNA Financial Corp.
|
| Amount: | $400 million, downsized from $500 million
|
| Description: | Senior notes
|
| Maturity: | March 1, 2026
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, U.S. Bancorp Investments, Inc., Barclays, BofA Merrill Lynch, Wells Fargo Securities LLC
|
| Co-manager: | Williams Capital Group LP
|
| Coupon: | 4.5%
|
| Price: | 99.975
|
| Yield: | 4.503%
|
| Spread: | Treasuries plus 275 bps
|
| Make-whole call: | Treasuries plus 45 bps prior to Dec. 1, 2025, then callable at par
|
| Trade date: | Feb. 19
|
| Settlement date: | Feb. 24
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: BBB
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 260 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.
