By Andrea Heisinger
New York, Jan. 28 - General Mills, Inc. priced $1 billion of senior notes (Baa1/BBB+/BBB+) in three tranches on Monday, a market source told Prospect News.
There was a $250 million tranche of three-year floating-rate notes sold at par to yield Libor plus 30 basis points. There is no call option for the tranche.
A $250 million tranche of 0.875% three-year notes was sold at a spread of Treasuries plus 45 bps. Price talk was in the 50 bps area.
Finally, there was $500 million of 4.15% 30-year bonds priced at a spread of 105 bps over Treasuries. There was price guidance in the 110 bps area.
Full terms of the tranches were not available at press time.
The notes feature a change-of-control put at 101%.
Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC were the bookrunners.
Proceeds will be used to repay a portion of outstanding commercial paper.
General Mills was last in the U.S. bond market with a $1 billion offering of 10-year notes on Nov. 17, 2011.
The maker of consumer food products is based in Minneapolis.
| Issuer: | General Mills, Inc.
|
| Issue: | Senior notes
|
| Amount: | $1 billion
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC
|
| Change-of-control put: | 101%
|
| Trade date: | Jan. 28
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
| Fitch: BBB+
|
|
|
| Three-year floaters
|
| Amount: | $250 million
|
| Maturity: | 2016
|
| Coupon: | Libor plus 30 bps
|
| Price: | Par
|
| Yield: | Libor plus 30 bps
|
| Call: | Non-callable
|
|
|
| Three-year fixed-rate notes
|
| Amount: | $250 million
|
| Maturity: | 2016
|
| Coupon: | 0.875%
|
| Spread: | Treasuries plus 45 bps
|
| Price talk: | 50 bps area
|
|
|
| 30-year bonds
|
| Amount: | $500 million
|
| Maturity: | 2043
|
| Coupon: | 4.15%
|
| Spread: | Treasuries plus 105 bps
|
| Price talk: | 110 bps area
|
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