By Andrea Heisinger
New York, April 7 - Gap, Inc. priced $1.25 billion of 5.95% 10-year notes on Thursday to yield Treasuries plus 245 basis points, said a source away from the sale.
The spread was at the tight end of guidance, which was in the 250 bps area.
The notes (Baa3/BB+/BBB-) were priced at 99.65 to yield 5.997%.
The notes have a make-whole call of 40 bps over Treasuries and feature a change-of-control put at 101%.
Goldman Sachs & Co., J.P. Morgan Securities LLC and Merrill Lynch were the bookrunners.
Proceeds will be used for general corporate purposes, including common stock repurchases.
The clothing retailer is based in San Francisco.
| Issuer: | Gap, Inc.
|
| Issue: | Notes
|
| Amount: | $1.25 billion
|
| Maturity: | April 12, 2021
|
| Bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities LLC, Merrill Lynch
|
| Coupon: | 5.95%
|
| Price: | 99.65
|
| Yield: | 5.997%
|
| Spread: | Treasuries plus 245 bps
|
| Call: | Make-whole at Treasuries plus 40 bps
|
| Change-of-control put: | 101%
|
| Trade date: | April 7
|
| Settlement date: | April 12
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BB+
|
| Fitch: BBB-
|
| Price talk: | 250 bps area
|
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