By Andrea Heisinger
New York, April 2 - The Hartford Financial Services Group, Inc. priced $1.55 billion of senior notes (Baa3/BBB/BBB-) in three tranches on Monday, an informed source said.
The $325 million of 4% notes due 2017 sold at 99.92 to yield 4.016% with a spread of Treasuries plus 300 basis points. The tranche sold at the tight end of talk in the 305 bps area, plus or minus 5 bps.
An $800 million tranche of 5.125% 10-year paper priced at 99.456 to yield 5.195% with a spread of Treasuries plus 300 bps. The notes also sold at the tight end of talk in the 305 bps area, plus or minus 5 bps.
There was a $425 million tranche of 6.625% 30-year bonds sold at 99.893 to yield 6.633% with a spread of 330 bps over Treasuries. The bonds priced at the low end of guidance in the 335 bps area, plus or minus 5 bps.
The deal is being done concurrently with a sale of $25-par 30-year fixed-to-floating-rate junior subordinated debentures.
Citigroup Global Markets Inc. and Goldman Sachs & Co. were the active bookrunners. Passive bookrunners were Bank of America Merrill Lynch, Barclays Capital Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC.
Proceeds of this and the concurrent offering are being used to repurchase 10% debentures, or if that does not take place, for general corporate purposes.
Hartford was last in the market with senior notes in a $1.1 billion offering in three tranches on March 18, 2010. The 4% five-year paper from that deal sold at 160 bps over Treasuries, a tranche of 5.5% 10-year notes sold at 185 bps and 6.625% 30-year bonds priced at 205 bps.
The insurance and financial services holding company is based in Hartford, Conn.
| Issuer: | Hartford Financial Services Group, Inc.
|
| Issue: | Senior notes
|
| Amount: | $1.55 billion
|
| Bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co. (active), Bank of America Merrill Lynch, Barclays Capital Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC (passive)
|
| Trade date: | April 2
|
| Settlement date: | April 5
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB
|
| Fitch: BBB-
|
|
|
| Five-year notes
|
| Amount: | $325 million
|
| Maturity: | Oct. 15, 2017
|
| Coupon: | 4%
|
| Price: | 99.92
|
| Yield: | 4.016%
|
| Spread: | Treasuries plus 300 bps
|
| Price talk: | 305 bps area, plus or minus 5 bps
|
|
|
| 10-year notes
|
| Amount: | $800 million
|
| Maturity: | April 15, 2022
|
| Coupon: | 5.125%
|
| Price: | 99.456
|
| Yield: | 5.195%
|
| Spread: | Treasuries plus 300 bps
|
| Price talk: | 305 bps area, plus or minus 5 bps
|
|
|
| 30-year bonds
|
| Amount: | $425 million
|
| Maturity: | April 15, 2042
|
| Coupon: | 6.625%
|
| Price: | 99.893
|
| Yield: | 6.633%
|
| Spread: | Treasuries plus 330 bps
|
| Price talk: | 335 bps area, plus or minus 5 bps
|
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