By Andrea Heisinger
New York, Feb. 9 - Kennametal, Inc. sold $300 million of 3.875% 10-year senior notes on Thursday to yield Treasuries plus 187.5 basis points, a market source said.
The notes (Baa2/BBB/BBB) were priced at 99.877 to yield 3.89%.
There is a make-whole call at Treasuries plus 30 bps until Nov. 15, 2021 and a par call after that date. The notes feature a change-of-control put at 101%.
Bank of America Merrill Lynch, J.P. Morgan Securities LLC and RBS Securities Inc. were the bookrunners.
Co-managers were PNC Capital Markets LLC, Mitsubishi UFJ Securities (USA) Inc. and Mizuho Securities USA Inc.
Proceeds will be used to repay 7.2% senior notes due in June, and pending that, may be used to repay debt under a credit facility or used for general corporate purposes.
The supplier of tooling, engineered components, and materials used in production processes is based in Latrobe, Pa.
| Issuer: | Kennametal, Inc.
|
| Issue: | Senior notes
|
| Amount: | $300 million
|
| Maturity: | Feb. 15, 2022
|
| 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.
|
| Coupon: | 3.875%
|
| Price: | 99.877
|
| Yield: | 3.89%
|
| Spread: | Treasuries plus 187.5 bps
|
| Call: | Make-whole at Treasuries plus 30 bps until Nov. 15, 2021, after at par
|
| Change-of-control put: | 101%
|
| Trade date: | Feb. 9
|
| Settlement date: | Feb. 14
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
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