By Cristal Cody
Tupelo, Miss., May 14 – Great-West Lifeco Inc. priced $800 million of senior notes (A+/A) in a two-part Rule 144A and Regulation S offering on Monday, according to a market source and a news release.
The company sold $300 million of 4.047% 10-year notes at a spread of 105 bps over Treasuries, on the tight side of guidance.
Great-West Lifeco priced $500 million of 4.581% 30-year notes on top of guidance with a Treasuries plus 145 bps spread.
The notes were brought to market via issuer Great-West Lifeco Finance 2018, LP and are guaranteed by Great-West Lifeco Inc.
J.P. Morgan Securities LLC, RBC Capital Markets, LLC, Wells Fargo Securities LLC, BMO Capital Markets Corp. and BMO Nesbitt Burns Inc. were the bookrunners.
Proceeds from the deal will be used to fund all or a portion of the redemption price of the $500 million outstanding of Great-West Lifeco Finance (Delaware) LP II's 7.127% subordinated debentures due 2068 on June 26, 2018 and for general corporate purposes.
Great-West Lifeco is a Winnipeg, Man.-based insurance and financial services holding company.
| Issuer: | Great-West Lifeco Finance 2018, LP
|
| Guarantor: | Great-West Lifeco Inc.
|
| Amount: | $800 million
|
| Description: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, RBC Capital Markets, LLC, Wells Fargo Securities LLC, BMO Capital Markets Corp. and BMO Nesbitt Burns Inc.
|
| Trade date: | May 14
|
| Settlement date: | May 17
|
| Ratings: | S&P: A+
|
| Fitch: A
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| 10-year notes
|
| Amount: | $300 million
|
| Maturity: | May 17, 2028
|
| Coupon: | 4.047%
|
| Spread: | Treasuries plus 105 bps
|
| Price guidance: | Treasuries plus 110 bps area
|
|
|
| 30-year notes
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| Amount: | $500 million
|
| Maturity: | May 17, 2048
|
| Coupon: | 4.581%
|
| Spread: | Treasuries plus 145 bps
|
| Price guidance: | Treasuries plus 145 bps area
|
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