By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, Jan. 6 – Genuine Parts Co. priced $1 billion of fixed-rate senior notes (Baa1/BBB) in two parts on Thursday, according to an FWP filing with the Securities and Exchange Commission.
The company sold $500 million of 1.75% notes due Feb. 1, 2025 at 99.721 to yield 1.844%, or a spread of 70 basis points over Treasuries, versus talk in the Treasuries plus 100 bps to 105 bps area, a market source told Prospect News.
Genuine Parts also priced $500 million of 2.75% notes maturing Feb. 1, 2032 at 98.81 to yield 2.887%, or a spread of 115 bps over Treasuries, compared to talk in the 150 bps area over Treasuries.
Both series feature a make-whole call and then a par call as well as a change-of-control put at 101 plus interest.
J.P. Morgan Securities LLC, Truist Securities, Inc., BofA Securities, Inc. and PNC Capital Markets LLC are the joint bookrunning managers.
Proceeds will be used to pay down debt associated with its acquisition of Kaman Distribution Group.
Atlanta-based Genuine Parts distributes automotive replacement parts.
| Issuer: | Genuine Parts Co.
|
| Amount: | $1 billion
|
| Issue: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Truist Securities, Inc., BofA Securities, Inc. and PNC Capital Markets LLC
|
| Senior co-managers: | MUFG, Santander Investment Securities Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | TD Securities (USA) LLC and U.S. Bancorp Investments, Inc.
|
| Pricing date: | Jan. 6
|
| Settlement date: | Jan. 10
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB
|
| Distribution: | SEC registered
|
|
|
| 2025 notes
|
| Amount: | $500 million
|
| Maturity: | Feb. 1, 2025
|
| Coupon: | 1.75%
|
| Price: | 99.721
|
| Yield: | 1.844%
|
| Spread: | Treasuries plus 70 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps until Feb. 1, 2023, then a par call
|
| Talk: | Treasuries plus 100 bps to 105 bps area
|
| Cusip: | 372460AB1
|
|
|
| 2032 notes
|
| Amount: | $500 million
|
| Maturity: | Feb. 1, 2032
|
| Coupon: | 2.75%
|
| Price: | 98.81
|
| Yield: | 2.887%
|
| Spread: | Treasuries plus 115 bps
|
| Call: | Make-whole call at Treasuries plus 20 bps until Nov. 1, 2031, then a par call
|
| Talk: | Treasuries plus 150 bps area
|
| Cusip: | 372460AC9
|
|
|
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