By Andrea Heisinger
New York, Nov. 8 - Hubbell, Inc. priced an upsized $300 million of 3.625% 12-year senior notes on Monday to yield Treasuries plus 115 basis points, a source who worked on the deal said.
The size had been announced at $250 million early in the day, a source said. The notes priced at the tight end of guidance in the 120 bps area.
The notes (A3/A/A) priced at 99.174 to yield 3.711%.
The notes have a make-whole call at 20 bps over Treasuries and feature a change-of-control put at 101%.
J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the bookrunners.
Co-managers were Bank of America Merrill Lynch, BNY Mellon Capital Markets LLC, HSBC Securities (USA) Inc., Morgan Stanley & Co. Inc. and U.S. Bancorp Investments Inc.
Proceeds are going to purchase 2012 notes in a tender offer and to pay for the costs of the note offering and tender offer. If any 2012 notes remain, they will be redeemed in accordance with terms. The remainder will be used for general corporate purposes, including acquisitions, distributions to shareholders and repurchase of securities.
The maker of electrical and electronic products is based in Shelton, Conn.
| Issuer: | Hubbell, Inc.
|
| Issue: | Senior notes
|
| Amount: | $300 million, increased from $250 million
|
| Maturity: | Nov. 15, 2022
|
| Bookrunners: | J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Co-managers: | Bank of America Merrill Lynch, BNY Mellon Capital Markets LLC, HSBC Securities (USA) Inc., Morgan Stanley & Co. Inc., U.S. Bancorp Investments Inc.
|
| Coupon: | 3.625%
|
| Price: | 99.174
|
| Yield: | 3.711%
|
| Spread: | Treasuries plus 115 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Change-of-control put: | 101%
|
| Trade date: | Nov. 8
|
| Settlement date: | Nov. 17
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A
|
| Fitch: A
|
| Price talk: | 120 bps area
|
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