By Andrea Heisinger
New York, Feb. 18 - Hanover Insurance Group, Inc. priced $200 million of 7.5% 10-year senior unsecured notes on Thursday to yield Treasuries plus 375 basis points, an informed source said.
The notes (Baa3/BBB-/BBB-) priced at 99.657 to yield 7.549%. They have a make-whole call at Treasuries plus 50 bps.
When asked about price talk, the source that there was essentially none because "it went really fast."
Barclays Capital Inc. and Goldman Sachs & Co. were the bookrunners.
Co-managers were J.P. Morgan Securities Inc., Wells Fargo Securities, Williams Capital Group LP, Fifth Third Securities Inc., RBS Securities Inc., Santander Investments and SG Americas Securities LLC.
Proceeds will be used for general corporate purposes and for working capital.
The holding company for property and casualty insurance provider Hanover Insurance Co. is based in Worcester, Mass.
| Issuer: | Hanover Insurance Group, Inc.
|
| Issue: | Senior unsecured notes
|
| Amount: | $200 million
|
| Maturity: | March 1, 2020
|
| Bookrunners: | Barclays Capital Inc., Goldman Sachs & Co.
|
| Co-managers: | J.P. Morgan Securities Inc., Wells Fargo Securities, Williams Capital Group LP, Fifth Third Securities Inc., RBS Securities Inc., Santander Investments, SG Americas Securities LLC
|
| Coupon: | 7.5%
|
| Price: | 99.657
|
| Yield: | 7.549%
|
| Spread: | Treasuries plus 375 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Trade date: | Feb. 18
|
| Settlement date: | Feb. 23
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
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