By Andrea Heisinger
New York, Dec. 8 - Kellogg Co. sold $1 billion of 4% 10-year notes on Wednesday at a spread of Treasuries plus 88 basis points, according to a source away from the sale.
The spread was at the tight end of guidance in the 90 bps area, the source said.
The notes (A3/BBB+/A-) sold at 99.137 to yield 4.106%.
The notes have a make-whole call of 15 bps and feature a change-of-control put at 101%.
Barclays Capital Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and BNP Paribas Securities Corp. were the bookrunners.
Co-managers were HSBC Securities USA Inc., Rabobank Securities USA Inc., BBVA Securities Inc., Morgan Stanley & Co. Inc., U.S. Bancorp Investments Inc., Wells Fargo Securities LLC, CastleOak Securities LP and Muriel Siebert & Co. Inc.
Proceeds will be used for general corporate purposes, including voluntary pension contributions and repayment of commercial paper issued to fund share repurchases.
The breakfast cereal and snack company is based in Battle Creek, Mich.
| Issuer: | Kellogg Co.
|
| Issue: | Notes
|
| Amount: | $1 billion
|
| Maturity: | Dec. 15, 2020
|
| Bookrunners: | Barclays Capital Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, BNP Paribas Securities Corp.
|
| Co-managers: | HSBC Securities USA Inc., Rabobank Securities USA Inc., BBVA Securities Inc., Morgan Stanley & Co. Inc., U.S. Bancorp Investments Inc., Wells Fargo Securities LLC, CastleOak Securities LP, Muriel Siebert & Co. Inc.
|
| Coupon: | 4%
|
| Price: | 99.137
|
| Yield: | 4.106%
|
| Spread: | Treasuries plus 88 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Change-of-control put: | 101%
|
| Trade date: | Dec. 8
|
| Settlement date: | Dec. 13
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: BBB+
|
| Fitch: A-
|
| Price talk: | 90 bps area
|
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