By Andrea Heisinger
New York, Nov. 2 - Kennametal, Inc. priced $400 million of 2.65% seven-year senior notes on Friday at a spread of Treasuries plus 150 basis points, a market source said.
The notes (Baa2/BBB/BBB) were sold at 99.867 to yield 2.671%. There is a make-whole call at Treasuries plus 25 bps until Oct. 1, 2019 and a par call after that date.
The sale features a change-of-control put at 101%.
Bookrunners were Bank of America Merrill Lynch, J.P. Morgan Securities LLC and RBS Securities Inc.
Proceeds will be used to repay outstanding debt under a credit facility and an uncommitted line of credit.
Kennametal was last in the market with a $300 million sale of 3.875% 10-year notes priced at 187.5 bps over Treasuries on Feb. 9, 2012.
The supplier of tooling, engineered components, and materials used in production processes is based in Latrobe, Pa.
| Issuer: | Kennametal, Inc.
|
| Issue: | Senior notes
|
| Amount: | $400 million
|
| Maturity: | Nov. 1, 2019
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities LLC, RBS Securities Inc.
|
| Co-managers: | PNC Capital Markets LLC, Mitsubishi UFJ Securities (USA) Inc., Mizuho Securities USA Inc., HSBC Securities (USA) Inc., U.S. Bancorp Investments, Inc.
|
| Coupon: | 2.65%
|
| Price: | 99.867
|
| Yield: | 2.671%
|
| Spread: | Treasuries plus 150 bps
|
| Call: | Make-whole at Treasuries plus 25 bps until Oct. 1, 2019, par call after
|
| Change-of-control put: | 101%
|
| Trade date: | Nov. 2
|
| Settlement date: | Nov. 7
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
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