By Andrea Heisinger
Omaha, March 3 - Kellogg Co. priced an upsized $750 million 4.25% five-year senior notes Monday to yield Treasuries plus 180 basis points, an informed source said.
The issue was increased from $500 million and priced at the tight end of talk, which was 180 to 183 bps more than Treasuries.
The notes (A3/BBB+/BBB+) have a price of 99.813 to yield 4.292%. They have a make-whole redemption option of Treasuries plus 30 bps.
The notes also feature a change-of-control put of 101%.
Bookrunners were Banc of America Securities LLC and Citigroup Global Markets Inc.
Co-managers were Deutsche Bank Securities Inc., Fifth Third Securities, Inc., Fortis Securities LLC, HSBC Securities (USA) Inc., Lloyds TSB Bank plc, Mitsubishi UFJ Securities International plc, Rabo Securities USA, Inc., SG Americas Securities, LLC and the Williams Capital Group, LP.
Proceeds will be used to repay a portion of the company's U.S. commercial paper.
The cereal and convenience food company is based in Battle Creek, Mich.
| Issuer: | Kellogg Co.
|
| Issue: | Senior notes
|
| Amount: | $750 million, increased from $500 million
|
| Maturity: | March 6, 2013
|
| Bookrunners: | Banc of America Securities LLC, Citigroup Global Markets Inc.
|
| Co-managers: | Deutsche Bank Securities Inc., Fifth Third Securities, Inc., Fortis Securities LLC, HSBC Securities (USA) Inc., Lloyds TSB Bank plc, Mitsubishi UFJ Securities International plc, Rabo Securities USA, Inc., SG Americas Securities, LLC and the Williams Capital Group, LP.
|
| Coupon: | 4.25%
|
| Price: | 99.813
|
| Yield: | 4.292%
|
| Spread: | Treasuries plus 180 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Change-of-control put: | 101%
|
| Trade date: | March 3
|
| Settlement date: | March 6
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: BBB+
|
| Fitch: BBB+
|
| Price talk: | 180 to 183 bps
|
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