By Cristal Cody
Tupelo, Miss., Sept. 17 – Hillenbrand, Inc. priced a $375 million offering of 4.5% seven-year senior notes (Baa3/BBB-/BBB-) at 99.847 to yield 4.526%, according to additional details of the deal in an FWP filing with the Securities and Exchange Commission on Tuesday.
The notes priced on Monday at a spread of 275 basis points over Treasuries, compared to initial talk in the 272.5 bps spread area.
The company dropped a planned second tranche of notes from the final offering.
J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the active bookrunners. Citizens Capital Markets Inc. was a passive bookrunner.
Proceeds will be used, together with a term loan facility of up to $500 million and a $900 million revolver, to finance the cash portion of an acquisition of Milacron Holdings Corp. The acquisition is valued at about $2 billion.
The notes will have a special call at 101 if the merger is not completed on or before July 6, 2020.
Batesville, Ind.-based Hillenbrand owns industrial companies that include the Batesville Casket Co.
| Issuer: | Hillenbrand, Inc.
|
| Amount: | $375 million
|
| Description: | Senior notes
|
| Maturity: | Sept. 15, 2026
|
| Bookrunners: | J.P. Morgan Securities LLC, Wells Fargo Securities LLC (active) and Citizens Capital Markets Inc. (passive)
|
| Co-managers: | PNC Capital Markets LLC, U.S. Bancorp Investments, Inc., BMO Capital Markets Corp., SMBC Nikko Securities America, Inc., HSBC Securities (USA) Inc., BB&T Capital Markets, Fifth Third Securities, Inc. and Commerz Markets LLC
|
| Coupon: | 4.5%
|
| Price: | 99.847
|
| Yield: | 4.526%
|
| Spread: | Treasuries plus 275 bps
|
| Call features: | Make-whole call before Jan. 15, 2026 at Treasuries plus 45 bps; thereafter at par; special call at 101 if merger not completed on or before July 6, 2020
|
| Trade date: | Sept. 16
|
| Settlement date: | Sept. 26
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 272.5 bps area
|
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