By Cristal Cody
Tupelo, Miss., Sept. 24 – International Flavors & Fragrances Inc. (Baa3/BBB) priced a $1.5 billion three-tranche offering of notes on the tight side of guidance on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.
A $300 million offering of 3.4% two-year notes priced with a spread of Treasuries plus 60 basis points, or 99.968 to yield 3.417%.
The company sold $400 million of 4.45% 10-year notes at 99.912 to yield 4.461% and a 138 bps spread over Treasuries.
A final $800 million tranche of 5% 30-year bonds priced at a spread of 183 bps over Treasuries. The notes were sold at 99.278 to yield 5.047%.
Bookrunners were Morgan Stanley & Co. LLC, BNP Paribas Securities Corp., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Citizens Capital Markets, Inc., ING Financial Markets LLC, MUFG, U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC and HSBC Securities (USA) Inc.
The company held a roadshow for the deal on Thursday and Friday.
International Flavors & Fragrances also priced a €1.1 billion two-part offering of euro-denominated senior notes on Thursday.
Proceeds from both transactions will be used to help fund a $7 billion acquisition to acquire Israeli extracts producer Frutarom Industries Ltd.
The New York City-based company produces flavors and fragrances for use in products including cosmetics, detergents, household goods, foods and beverages.
| Issuer: | International Flavors & Fragrances Inc. p
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| Amount: | $1.5 billion
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| Description: | Senior notes
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| Bookrunners: | Morgan Stanley & Co. LLC, BNP Paribas Securities Corp., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Citizens Capital Markets, Inc., ING Financial Markets LLC, MUFG, U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC and HSBC Securities (USA) Inc.
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| Co-manager: | Standard Chartered Bank
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| Trade date: | Sept. 24
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| Settlement date: | Sept. 26
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| Ratings: | Moody’s: Baa3
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| S&P: BBB
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| Distribution: | SEC registered
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| Marketing: | Roadshow
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| Two-year notes
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| Amount: | $300 million
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| Maturity: | Sept. 25, 2020
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| Coupon: | 3.4%
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| Price: | 99.968
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| Yield: | 3.417%
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| Spread: | Treasuries plus 60 bps
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| Call features: | Make-whole call at price equal to greater of par and Treasuries plus 10 bps before Sept. 25, 2020; special call at 101 if merger not completed by Feb. 7, 2019
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| Change-of-control put: | 101%
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| Price guidance: | Treasuries plus 62 bps area, plus or minus 2 bps; initial price talk at Treasuries plus 87.5 bps area
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| 10-year notes
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| Amount: | $400 million
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| Maturity: | Sept. 26, 2028
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| Coupon: | 4.45%
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| Price: | 99.912
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| Yield: | 4.461%
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| Spread: | Treasuries plus 138 bps
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| Call features: | Make-whole call at price equal to greater of par and Treasuries plus 25 bps before June 26, 2028; thereafter at par; special call at 101 if merger not completed by Feb. 7, 2019
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| Change-of-control put: | 101%
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| Price guidance: | Treasuries plus 140 bps area, plus or minus 2 bps; initial price talk at Treasuries plus 165 bps area
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| 30-year notes
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| Amount: | $800 million
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| Maturity: | Sept. 26, 2048
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| Coupon: | 5%
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| Price: | 99.278
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| Yield: | 5.047%
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| Spread: | Treasuries plus 183 bps
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| Call features: | Make-whole call at price equal to greater of par and Treasuries plus 30 bps before March 26, 2048; thereafter at par; special call at 101 if merger not completed by Feb. 7, 2019
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| Change-of-control put: | 101%
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| Price guidance: | Treasuries plus 185 bps area, plus or minus 2 bps; initial price talk at Treasuries plus 205 bps to 210 bps area
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