Published on 6/5/2013 in the Prospect News Investment Grade Daily.
New Issue: Allstate details terms of upsized $1 billion note sale in 10-, 30-year tranches
By Andrea Heisinger
New York, June 5 - Allstate Corp. gave terms of its upsized $1 billion of notes (A3/A-/) priced in two parts in an FWP filing with the Securities and Exchange Commission.
The size was increased from $750 million.
The sale included a $500 million tranche of 3.15% 10-year notes priced at 99.803 to yield 3.173% with a spread of Treasuries plus 102 basis points. There is a make-whole call at Treasuries plus 15 bps.
A $500 million tranche of 4.5% 30-year bonds sold at 99.558 to yield 4.527% with a spread of Treasuries plus 122 bps. The tranche features a make-whole call at 20 bps over Treasuries.
Bookrunners for the 10-year notes were Deutsche Bank Securities Inc., Goldman Sachs & Co., Wells Fargo Securities LLC, BofA Merrill Lynch, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC.
Those for the 30-year bonds were Barclays, Deutsche Bank, Goldman Sachs, J.P. Morgan Securities LLC, Credit Suisse and U.S. Bancorp Investments Inc.
Proceeds, along with cash on hand, will be used to fund concurrent tender offers and for general corporate purposes.
Allstate last tapped the U.S. bond market in a $500 million sale of 5.2% 30-year bonds priced at 225 bps over Treasuries on Jan. 9, 2012.
The holding company for insurance subsidiaries is based in Northbrook, Ill.
| Issuer: | Allstate Corp.
|
| Issue: | Notes
|
| Amount: | $1 billion, upsized from $750 million
|
| Trade date: | June 4
|
| Settlement date: | June 7
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A-
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | June 15, 2023
|
| Bookrunners: | Deutsche Bank Securities Inc., Goldman Sachs & Co., Wells Fargo Securities LLC, BofA Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC
|
| Co-managers: | J.P. Morgan Securities LLC, Barclays, U.S. Bancorp Investments, Inc., Morgan Stanley & Co. LLC, Loop Capital Markets LLC, BNY Mellon Capital Markets, LLC, PNC Capital Markets LLC
|
| Coupon: | 3.15%
|
| Price: | 99.803
|
| Yield: | 3.173%
|
| Spread: | Treasuries plus 102 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
|
|
| 30-year bonds
|
| Amount: | $500 million
|
| Maturity: | June 15, 2043
|
| Bookrunners: | Barclays, Deutsche Bank, Goldman Sachs, J.P. Morgan Securities LLC, Credit Suisse, U.S. Bancorp Investments Inc.
|
| Co-managers: | BofA Merrill Lynch, Wells Fargo, Citigroup, Morgan Stanley, UBS Securities LLC, Loop Capital Markets LLC, BNY Mellon, PNC Capital
|
| Coupon: | 4.5%
|
| Price: | 99.558
|
| Yield: | 4.527%
|
| Spread: | Treasuries plus 122 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
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