By Andrea Heisinger
Omaha, Dec. 21 - Con-way Inc. priced $425 million of 7.25% 10-year senior notes Friday to yield 310.5 basis points more than Treasuries, an informed source said.
The notes (Baa3/BBB/BBB) priced at 99.993 to yield 7.25%. They have a change-of-control put of 101% and make-whole call option of Treasuries plus 50 bps.
Although some market participants said the market had seen the end of new issues for the year, this one was not a complete surprise.
"We knew we had it in the wings and it could come into the market at any time," a source close to the deal said.
"It was kind of opportunistic, and we just kind of snuck it in there."
Goldman Sachs & Co. was the bookrunner.
Proceeds will be used to repay amounts outstanding under the company's bridge loan facility, which was used to finance the acquisition of Contract Freighters Inc.
The trucking company is based in San Mateo, Calif.
| Issuer: | Con-way Inc.
|
| Issue: | Senior notes
|
| Amount: | $425 million
|
| Maturity: | Jan. 15, 2018
|
| Bookrunner: | Goldman Sachs & Co.
|
| Coupon: | 7.25%
|
| Price: | 99.993
|
| Yield: | 7.25%
|
| Spread: | Treasuries plus 310.5 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Change-of-control put: | 101%
|
| Trade date: | Dec. 21
|
| Settlement date: | Dec. 27
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
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