New Issue: Kellogg sells $500 million of 2.1% 10-year notes to yield Treasuries plus 143 bps

By Cristal Cody

Tupelo, Miss., May 26 – Kellogg Co. sold $500 million of 2.1% 10-year senior notes (Baa2/BBB) on Tuesday at a spread of 143 basis points over Treasuries, according a market source and an FWP filing with the Securities and Exchange Commission.

Initial guidance was in the Treasuries plus 175 bps area.

The notes priced at 99.731 to yield 2.13%.

Barclays, BofA Securities Inc. and Morgan Stanley & Co. LLC were the bookrunners.

Proceeds will be used for general corporate purposes, including repaying a portion of the company’s $601 million of 4% notes due Dec. 15, 2020.

The Battle Creek, Mich.-based company manufactures cereal and convenience foods.

Issuer:	Kellogg Co.
Amount:	$500 million
Description:	Senior notes
Maturity:	June 1, 2030
Bookrunners:	Barclays, BofA Securities Inc. and Morgan Stanley & Co. LLC
Co-managers:	BBVA Securities Inc., Deutsche Bank Securities Inc., Mizuho Securities USA LLC, TD Securities (USA) LLC, U.S. Bancorp Investments, Inc., Academy Securities, Inc., ICBC Standard Bank plc, MFR Securities, Inc. and SMBC Nikko Securities America, Inc.
Coupon:	2.1%
Price:	99.731
Yield:	2.13%
Spread:	Treasuries plus 143 bps
Call features:	Make-whole call at Treasuries plus 25 bps before March 1, 2030; thereafter at par
Trade date:	May 26
Settlement date:	June 1
Ratings:	Moody’s: Baa2
	S&P: BBB
Distribution:	SEC registered
Price guidance:	Treasuries plus 175 bps area

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