By Cristal Cody
Tupelo, Miss., May 3 – Hershey Co. sold $1.2 billion of senior notes (A1/A) in three tranches on the tight side of guidance on Thursday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company priced $350 million of 2.9% two-year notes at a spread of 45 basis points over Treasuries, or 99.934 to yield 2.934%.
Hershey sold $350 million of 3.1% three-year notes at 99.931 to yield 3.124% and with a Treasuries plus 50 bps spread.
The $500 million tranche of 3.375% five-year notes priced with a spread of 60 bps over Treasuries. The notes priced at 99.958 to yield 3.384%.
Bookrunners were Citigroup Global Markets Inc., BofA Merrill Lynch and RBC Capital Markets LLC.
Proceeds will be used to repay a portion of the commercial paper Hershey issued to fund the acquisition of Amplify Snack Brands, Inc. and for general corporate purposes.
The maker of chocolate and confectionery products is based in Hershey, Pa.
| Issuer: | Hershey Co.
|
| Amount: | $1.2 billion
|
| Description: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., BofA Merrill Lynch and RBC Capital Markets LLC
|
| Senior co-managers: | J.P. Morgan Securities LLC and PNC 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 and Loop Capital Markets LLC
|
| Change-of-control put: | 101%
|
| Trade date: | May 3
|
| Settlement date: | May 10
|
| Ratings: | Moody’s: A1
|
| S&P: A
|
| Distribution: | SEC registered
|
|
|
| Two-year notes
|
| Amount: | $350 million
|
| Maturity: | May 15, 2020
|
| Coupon: | 2.9%
|
| Price: | 99.934
|
| Yield: | 2.934%
|
| Spread: | Treasuries plus 45 bps
|
| Call feature: | Make-whole call of Treasuries plus 10 bps
|
| Price guidance: | Treasuries plus 45 bps-50 bps area
|
|
|
| Three-year notes
|
| Amount: | $350 million
|
| Maturity: | May 15, 2021
|
| Coupon: | 3.1%
|
| Price: | 99.931
|
| Yield: | 3.124%
|
| Spread: | Treasuries plus 50 bps
|
| Call feature: | Make-whole call of Treasuries plus 10 bps
|
| Price guidance: | Treasuries plus 50 bps-55 bps area
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | May 15, 2023
|
| Coupon: | 3.375%
|
| Price: | 99.958
|
| Yield: | 3.384%
|
| Spread: | Treasuries plus 60 bps
|
| Call feature: | Make-whole call of Treasuries plus 10 bps before April 15, 2023; thereafter at par
|
| Price guidance: | Treasuries plus 60 bps-65 bps area
|
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