By Cristal Cody
Eureka Springs, Ark., Aug. 3 – Hershey Co. sold $800 million of 10- and 20-year notes on Tuesday, according to a market source and a FWP filing with the Securities and Exchange Commission.
The company priced $500 million of 2.3% 10-year notes at 99.671 to yield 2.337%. The notes priced with a spread of 80 basis points plus Treasuries, on the tight side of price talk of 85 bps plus Treasuries area and initial price guidance in the 90 bps area.
Hershey sold $300 million of 3.375% 30-year notes at 99.513 to yield 3.401% and a spread of 110 bps plus Treasuries. The notes priced on the tight side of guidance of 110 bps over Treasuries area and tightened from initial price talk of 120 bps area over Treasuries.
The bookrunners were Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch and RBC Capital Markets LLC.
Proceeds will be used to repay at maturity the $250 million total principal of 5.45% notes due 2016 and $250 million total principal of 1.5% notes due 2016, to fund the acquisition of Ripple Brand Collective, LLC and for general corporate purposes.
The maker of chocolate and confectionery products is based in Hershey, Pa.
| Issuer: | Hershey Co.
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| Amount: | $800 million
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| Description: | Notes
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| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch and RBC Capital Markets LLC
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| Senior co-manager: | PNC Capital Markets LLC
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| Co-managers: | CIBC World Markets Corp., Santander Investment Securities Inc., U.S. Bancorp Investments, Inc., Williams Capital Group, LP and Banco Bradesco BBI SA
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| Trade date: | Aug. 2
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| Settlement date: | Aug. 9
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| Put option: | 101%
|
| Ratings: | Moody’s: A1
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| S&P: A
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| Distribution: | SEC registered
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| 10-year notes
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| Amount: | $500 million
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| Maturity: | Aug. 15, 2026
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| Coupon: | 2.3%
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| Price: | 99.671
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| Yield: | 2.337%
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| Spread: | Treasuries plus 80 bps
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| Price guidance: | Treasuries plus 85 bps area, tightened from Treasuries plus 90 bps area
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| Call feature: | Make-whole call of Treasuries plus 15 bps prior to date of 90 days before maturity; on or after 90 days before maturity at par
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| 30-year notes
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| Amount: | $300 million
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| Maturity: | Aug. 15, 2046
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| Coupon: | 3.375%
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| Price: | 99.513
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| Yield: | 3.401%
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| Spread: | Treasuries plus 110 bps
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| Price guidance: | Treasuries plus 110 bps area, tightened from Treasuries plus 120 bps area
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| Call feature: | Make-whole call of Treasuries plus 20 bps prior to date of 180 days before maturity; on or after 180 days before maturity at par
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