By Andrea Heisinger
Omaha, Jan. 9 - Block Financial LLC priced an upsized $600 million 7.875% five-year notes late Tuesday at Treasuries plus 481.9 basis points, according to an FWP filing with the Securities and Exchange Commission.
The issue was increased from a planned $300 million.
The notes (Baa1/BBB-/BBB) priced at 99.896 to yield 7.9%.
There is a make-whole call feature at Treasuries plus 70 bps.
The notes also feature a 101% change-of-control put.
Bookrunners were HSBC Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Inc. and J.P. Morgan Securities Inc.
The first $250 million of proceeds will be used for an amended and restated bridge credit and guarantee agreement with BNP Paribas, with another $50 million used for working capital, capital expenditures, repayment of other debt and for other general corporate purposes.
The unit of income tax preparation company H&R Block Inc. is based in Kansas City, Mo.
| Issuer: | Block Financial LLC
|
| Issue: | Notes
|
| Amount: | $600 million, upsized from $300 million
|
| Maturity: | Jan. 15, 2013
|
| Bookrunners: | HSBC Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Inc., J.P. Morgan Securities Inc.
|
| Coupon: | 7.875%
|
| Price: | 99.896
|
| Yield: | 7.9%
|
| Spread: | Treasuries plus 481.9 bps
|
| Call: | Make-whole at Treasuries plus 70 bps
|
| Change-of-control put: | 101%
|
| Trade date: | Jan. 8
|
| Settlement date: | Jan. 11
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB-
|
| Fitch: BBB
|
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