By Aleesia Forni
Virginia Beach, Aug. 18 – Hershey Co. sold $600 million of senior notes (A1/A) on Tuesday in two parts, according to a market source and an FWP filing with the Securities and Exchange Commission.
The offering includes $300 million of 1.6% three-year notes that priced at 99.974 to yield 1.609% with a spread of Treasuries plus 55 basis points.
The issue sold at the tight end of guidance set in the Treasuries plus 60 bps area, tightened from talk in the Treasuries plus 70 bps area.
A $300 million 3.2% 10-year note priced at 99.703 to yield 3.235% with a spread of Treasuries plus 105 bps.
Pricing was at the tight end of the Treasuries plus 110 bps area guidance. Initially, the notes were talked in the Treasuries plus 120 bps area.
Citigroup Global Markets Inc., BofA Merrill Lynch, PNC Capital Markets LLC and J.P. Morgan Securities LLC are the bookrunners.
Proceeds will be used to repay the company’s $250 million of 4.85% notes due 2015, to fund a tender offer and for general corporate purposes.
The maker of chocolate and confectionery products is based in Hershey, Pa.
| Issuer: | Hershey Co.
|
| Issue: | Senior notes
|
| Amount: | $600 million
|
| Bookrunners: | Citigroup Global Markets Inc., BofA Merrill Lynch, PNC Capital Markets LLC, J.P. Morgan Securities LLC
|
| Senior co-manager: | RBC Capital Markets LLC
|
| Co-managers: | CIBC World Markets Corp., Santander Investment Securities Inc., U.S. Bancorp Investments Inc., Williams Capital Group LP, Banco Bradesco BBI SA
|
| Trade date: | Aug. 18
|
| Settlement date: | Aug. 21
|
| Change-of-control put: | 101%
|
| Ratings: | Moody’s: A1
|
| Standard & Poor’s: A
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $300 million
|
| Maturity: | Aug. 21, 2018
|
| Coupon: | 1.6%
|
| Price: | 99.974
|
| Yield: | 1.609%
|
| Spread: | Treasuries plus 55 bps
|
| Price guidance: | Treasuries plus 60 bps area, tightened from Treasuries plus 70 bps area
|
| Make-whole call: | Treasuries plus 10 bps
|
|
|
| 10-year notes
|
| Amount: | $300 million
|
| Maturity: | Aug. 21, 2025
|
| Coupon: | 3.2%
|
| Price: | 99.703
|
| Yield: | 3.235%
|
| Spread: | Treasuries plus 105 bps
|
| Price guidance: | Treasuries plus 110 bps area, tightened from Treasuries plus 120 bps area
|
| Make-whole call: | Treasuries plus 15 bps prior to May 21, 2025, then callable at par
|
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