By William Gullotti
Buffalo, N.Y., Feb. 23 – Kellogg Co. sold $400 million of 5.25% 10-year senior notes (Baa2/BBB) on Thursday at a spread of 140 basis points over Treasuries, according an FWP filing and a 424B3 filing with the Securities and Exchange Commission.
The notes priced at 99.823 to yield 5.273%.
The notes feature a make-whole call at Treasuries plus 25 bps until Dec. 1, 2032, followed by a par call. Noteholders will also be able to exercise put rights at 101 if a change of control occurs.
Barclays, BofA Securities Inc. and Citigroup Global Markets Inc. are the joint bookrunning managers.
Proceeds will be used for general corporate purposes, including the repayment of $210 million of notes maturing on March 1, 2023, the repayment of a portion of commercial paper borrowings and the payment of offering-related fees and expenses.
As of Dec. 31, the company had $330 million of commercial paper.
The Battle Creek, Mich.-based company manufactures cereal and convenience foods.
| Issuer: | Kellogg Co.
|
| Amount: | $400 million
|
| Issue: | Senior notes
|
| Maturity: | March 1, 2033
|
| Bookrunners: | Barclays, BofA Securities Inc. and Citigroup Global Markets Inc.
|
| Co-managers: | HSBC Securities (USA) Inc., ING Financial Markets LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., Academy Securities, Inc., CastleOak Securities, LP and MFR Securities, Inc.
|
| Trustee: | Bank of New York Mellon Trust Co., NA
|
| Counsel to issuer: | In-house counsel and Kirkland & Ellis LLP
|
| Counsel to underwriters: | Mayer Brown LLP
|
| Coupon: | 5.25%
|
| Price: | 99.823
|
| Yield: | 5.273%
|
| Spread: | Treasuries plus 140 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps before Dec. 1, 2032; thereafter at par
|
| Change of control: | At 101
|
| Trade date: | Feb. 23
|
| Settlement date: | March 1
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Distribution: | SEC registered
|
| Cusip: | 487836BZ0
|
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