By Andrea Heisinger
New York, Oct. 2 - Heineken NV priced $3.25 billion of notes (Baa1/BBB+/) in four maturities on Tuesday, a source close to the trade said.
A $500 million tranche of 0.8% three-year notes was priced at 99.827 to yield 0.859% with a spread of 55 basis points over Treasuries. This was tighter than initial talk in the Treasuries plus 80 bps area and at the tight end of revised guidance in the 55 bps to 65 bps range.
The three-year notes have a make-whole call at Treasuries plus 10 bps.
The $1.25 billion of 1.4% five-year notes were sold at 99.67 to yield 1.469% with a spread of Treasuries plus 85 bps. The pricing level was lower than initial guidance in the 110 bps area and at the tight end of revised talk in the 85 bps to 95 bps range.
There is a make-whole call at Treasuries plus 15 bps on the five-year notes.
The $1 billion of 2.75% notes due 2023 were priced at 99.811 to yield 2.771% with a spread of Treasuries plus 115 bps. The bonds were priced lower than initial talk in the 140 bps area and at the tight end of revised guidance in the 115 bps to 125 bps range.
The notes due 2023 feature a make-whole call at 20 bps over Treasuries.
The $500 million tranche of 4% 30-year bonds was sold at 98.251 to yield 4.102% with a spread of 130 bps over Treasuries. The bonds were initially being talked in the 160 bps area and then in the 130 bps to 140 bps range.
The tranche of 30-year bonds has a make-whole call option at 20 bps over Treasuries.
Coupons for both the three-year notes and five-year bonds set new record lows among BBB rated issuers, sources said Tuesday. The three-year coupon had not yet dipped below 1%, and the five-year record was previously 1.5%.
Heineken's sale was done via Rule 144A and Regulation S and features a change-of-control put at 101%.
Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC were the bookrunners.
Proceeds will be used to help fund the acquisition of Asia Pacific Breweries.
Heineken was last in the U.S. bond market with a $750 million sale of 3.4% 10-year notes priced at 127 bps over Treasuries on March 29, 2012.
The brewery is based in Amsterdam.
| Issuer: | Heineken NV
|
| Issue: | Notes
|
| Amount: | $3.25 billion
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC
|
| Change-of-control put: | 101%
|
| Distribution: | Rule 144A, Regulation S
|
| Trade date: | Oct. 2
|
| Settlement date: | Oct. 10
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
|
|
| Three-year notes
|
| Amount: | $500 million
|
| Maturity: | Oct. 1, 2015
|
| Coupon: | 0.8%
|
| Price: | 99.827
|
| Yield: | 0.859%
|
| Spread: | Treasuries plus 55 bps
|
| Call: | Make-whole at Treasuries plus 10 bps
|
| Price talk: | 80 bps area (initial), 55-65 bps (revised)
|
|
|
| Five-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Oct. 1, 2017
|
| Coupon: | 1.4%
|
| Price: | 99.67
|
| Yield: | 1.469%
|
| Spread: | Treasuries plus 85 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Price talk: | 110 bps area (initial), 85-95 bps (revised)
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | April 1, 2023
|
| Coupon: | 2.75%
|
| Price: | 99.811
|
| Yield: | 2.771%
|
| Spread: | Treasuries plus 115 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Price talk: | 140 bps area (initial), 115-125 bps (revised)
|
|
|
| 30-year bonds
|
| Amount: | $500 million
|
| Maturity: | Oct. 1, 2042
|
| Coupon: | 4%
|
| Price: | 98.251
|
| Yield: | 4.102%
|
| Spread: | Treasuries plus 130 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Price talk: | 160 bps area (initial), 130-140 bps (revised)
|
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