New Issue: Kellogg sells $600 million 2.65% seven-year notes with 107 bps spread

By Cristal Cody

Eureka Springs, Ark., Nov. 7 – Kellogg Co. priced $600 million of 2.65% seven-year senior notes (Baa2/BBB/BBB) on Monday at a spread of 107 basis points over Treasuries, according to an FWP filing with the Securities and Exchange Commission.

The notes priced at 99.91 to yield 2.664%.

HSBC Securities (USA) Inc., BofA Merrill Lynch and U.S. Bancorp Investments Inc. were the bookrunners.

Proceeds will be used to repay the company’s 1.875% 2016 notes when they mature on Nov. 17, 2016 and to repay commercial paper borrowings.

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

Issuer:	Kellogg Co.
Amount:	$600 million
Description:	Senior notes
Maturity:	Dec. 1, 2023
Bookrunners:	HSBC Securities (USA) Inc., BofA Merrill Lynch, U.S. Bancorp Investments Inc.
Co-managers:	ING Financial Markets LLC, SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC, Academy Securities, Inc., Loop Capital Markets LLC
Coupon:	2.65%
Price:	99.91
Yield:	2.664%
Spread:	Treasuries plus 107 bps
Make-whole call:	Any time at Treasuries plus 20 bps
Trade date:	Nov. 7
Settlement date:	Nov. 15
Ratings:	Moody’s: Baa2
	S&P: BBB
	Fitch: BBB
Distribution:	SEC registered

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