Published on 10/28/2019 in the Prospect News Investment Grade Daily.
New Issue: Hershey prices $1 billion of fixed-rate notes in three tranches
By Devika Patel
Knoxville, Tenn., Oct. 28 – Hershey Co. priced $1 billion of notes (A1/A/A) in three tranches on Monday, according to an FWP filed with the Securities and Exchange Commission.
There was $300 million of 2.05% five-year bonds sold with a 40 basis points spread over Treasuries. Pricing was at 99.914 to yield 2.068%.
The company sold $300 million of 2.45% 10-year bonds sold with a 60 bps spread over Treasuries. Pricing was at 99.964 to yield 2.454%.
Hershey priced $400 million of 3.125% 30-year bonds at 80 bps over Treasuries. Pricing was at 99.612 to yield 3.145%.
BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, RBC Capital Markets LLC and PNC Capital Markets LLC are the bookrunners.
Proceeds will be used to repay some commercial paper and for general corporate purposes.
Based in Hershey, Pa., Hershey is a manufacturer of chocolate and non-chocolate confectionery and chocolate-related grocery products.
| Issuer: | Hershey Co.
|
| Issue: | Notes
|
| Amount: | $1 billion
|
| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, RBC Capital Markets LLC and PNC Capital Markets LLC
|
| Co-managers: | Banco Bradesco BBI SA, CIBC World Markets Corp., Loop Capital Markets LLC, Santander Investment Securities Inc., U.S. Bancorp Investments Inc. and Williams Capital Group LP
|
| Trade date: | Oct. 28
|
| Settlement date: | Oct. 31
|
| Ratings: | Moody’s: A1
|
| S&P: A
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $300 million
|
| Maturity: | Nov. 15, 2024
|
| Coupon: | 2.05%
|
| Price: | 99.914
|
| Yield: | 2.068%
|
| Spread: | Treasuries plus 40 bps
|
| Call: | Make-whole call at Treasuries plus 10 bps until Oct. 15, 2024, then a par call
|
|
|
| 10-year notes
|
| Amount: | $300 million
|
| Maturity: | Nov. 15, 2029
|
| Coupon: | 2.45%
|
| Price: | 99.964
|
| Yield: | 2.454%
|
| Spread: | Treasuries plus 60 bps
|
| Call: | Make-whole call at Treasuries plus 10 bps until Aug. 15, 2029 and then a par call
|
|
|
| 30-year notes
|
| Amount: | $400 million
|
| Maturity: | Nov. 15, 2049
|
| Coupon: | 3.125%
|
| Price: | 99.612
|
| Yield: | 3.145%
|
| Spread: | Treasuries plus 80 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps until May 15, 2049 and then a par call
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
