By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, Jan. 10 – Dick’s Sporting Goods, Inc. priced $1.5 billion of senior notes (Baa3/BBB) in two tranches due 2032 and 2052 on Monday, according to an FWP filed with the Securities and Exchange Commission.
According to Moody’s Investors Service, the amount of the offering was initially expected to be $1 billion.
The company priced $750 million of 3.15% 10-year notes at 99.796 to yield 3.174%, or a spread of Treasuries plus 140 basis points, compared to talk of Treasuries plus 165 bps area, as seen by a market source.
Dick’s priced $750 million 4.1% 30-year notes at 99.76 to yield 4.114%, or a spread over Treasuries of 200 bps, versus talk in the Treasuries plus 215 bps area.
The 2032 notes feature a make-whole call until three months prior to maturity and then a par call. The 2052 notes feature a make-whole call until six months prior to maturity and then a par call.
BofA Securities Inc., Wells Fargo Securities LLC, PNC Capital Markets LLC, TD Securities (USA) LLC and U.S. Bancorp Investments, Inc. are the bookrunners.
Proceeds will be used for general corporate purposes, including repurchases of convertibles or common stock.
Dick’s Sporting Goods is a Pittsburgh-based sporting goods retailer.
| Issuer: | Dick’s Sporting Goods, Inc.
|
| Amount: | $1.5 billion
|
| Issue: | Senior secured notes
|
| Bookrunners: | BofA Securities Inc., Wells Fargo Securities LLC, PNC Capital Markets LLC, TD Securities (USA) LLC and U.S. Bancorp Investments, Inc.
|
| Senior co-managers: | Capital One Securities, Inc., Fifth Third Securities, Inc. and Truist Securities, Inc.
|
| Co-managers: | Citizens Capital Markets, Inc., HSBC Securities (USA) Inc. and Huntington Securities, Inc.
|
| Trade date: | Jan. 10
|
| Settlement date: | Jan. 14
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB
|
|
|
| 2032 notes
|
| Amount: | $750 million
|
| Maturity: | Jan. 15, 2032
|
| Coupon: | 3.15%
|
| Price: | 99.796
|
| Yield: | 3.174%
|
| Spread: | Treasuries plus 140 bps
|
| Call: | Make-whole call at Treasuries plus 25 bps until Oct. 15, 2031, then a par call
|
| Talk: | Treasuries plus 165 bps area
|
| Cusip: | 253393AF9
|
|
|
| 2052 notes
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| Amount: | $750 million
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| Maturity: | Jan. 15, 2052
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| Coupon: | 4.1%
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| Price: | 99.76
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| Yield: | 4.114%
|
| Spread: | Treasuries plus 200 bps
|
| Call: | Make-whole call at Treasuries plus 30 bps until July 15, 2051, then a par call
|
| Talk: | Treasuries plus 215 bps area
|
| Cusip: | 253393AG7
|
|
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