By Andrea Heisinger
Omaha, Nov. 28 - Kellogg Co. priced an upsized $750 million in 5.125% five-year senior notes Wednesday to yield Treasuries plus 165 basis points, a market source said.
The company originally planned to sell $500 million of notes, with price guidance at 170 to 175 bps over Treasuries, the source said.
The notes (A3/BBB+) priced at 99.965 to yield 5.133%.
There is a make-whole call of Treasuries plus 30 bps.
Bookrunners were J.P. Morgan Securities Inc., Barclays and SunTrust Robinson Humphrey.
Proceeds will be used to repay a portion of the company's commercial paper.
The cereal manufacturer is based in Battle Creek, Mich.
| Issuer: | Kellogg Co.
|
| Issue: | Senior notes
|
| Amount: | $750 million, upsized from $500 million
|
| Maturity: | Dec. 3, 2012
|
| Bookrunners: | J.P. Morgan Securities Inc., Barclays, SunTrust Robinson Humphrey
|
| Coupon: | 5.125%
|
| Price: | 99.965
|
| Yield: | 5.133%
|
| Spread: | Treasuries plus 165 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Trade date: | Nov. 28
|
| Settlement date: | Dec. 3
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: BBB+
|
| Price talk: | 170 to 175 bps
|
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