Published on 10/12/2011 in the Prospect News Investment Grade Daily.
New Issue: Kohl's sells $650 million 4% 10-year senior notes to yield Treasuries plus 183 bps
By Andrea Heisinger
New York, Oct. 12 - Kohl's Corp. sold $650 million of 4% 10-year senior notes on Wednesday to yield 183 basis points over Treasuries, said a source close to the trade.
The securities were sold tighter than guidance in the low 200 bps area.
The notes (Baa1/BBB+/BBB+) were priced at 99.451 to yield 4.067%.
The notes have a make-whole call at Treasuries plus 30 bps before Aug. 1, 2021 and can be redeemed after that date at par. The notes feature a change-of-control put at 101%.
Bank of America Merrill Lynch, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC ran the books.
Co-managers were U.S. Bancorp Investments, Inc., J.P. Morgan Securities LLC, UBS Securities LLC, Goldman Sachs & Co., BMO Capital Markets Corp., BNY Mellon Capital Markets, LLC, Capital One Southcoast, Inc., Comerica Securities, Inc., Fifth Third Securities, Inc., PNC Capital Markets LLC, Mitsubishi UFJ Securities (USA), Inc., TD Securities (USA) LLC and Williams Capital Group, LP.
Proceeds will be used to retire $100 million of 7.375% senior notes due in October and for general corporate purposes, including funding a share repurchase program, working capital, repayment or refinancing of other debt and capital expenditures related to store growth or remodeling.
Kohl's last priced debt in a $1 billion sale in 10- and 30-year tranches on Sept. 25, 2007. The 6.25% 10-year notes from that trade were priced at 170 bps over Treasuries.
The department store chain is based in Menomonee Falls, Wis.
| Issuer: | Kohl's Corp.
|
| Issue: | Senior notes
|
| Amount: | $650 million
|
| Maturity: | Nov. 1, 2021
|
| Bookrunners: | Bank of America Merrill Lynch, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC
|
| Co-managers: | U.S. Bancorp Investments, Inc., J.P. Morgan Securities LLC, UBS Securities LLC, Goldman Sachs & Co., BMO Capital Markets Corp., BNY Mellon Capital Markets, LLC, Capital One Southcoast, Inc., Comerica Securities, Inc., Fifth Third Securities, Inc., PNC Capital Markets LLC, Mitsubishi UFJ Securities (USA), Inc., TD Securities (USA) LLC, Williams Capital Group, LP
|
| Coupon: | 4%
|
| Price: | 99.451
|
| Yield: | 4.067%
|
| Spread: | Treasuries plus 183 bps
|
| Call: | Make-whole at Treasuries plus 30 bps until Aug. 1, 2021, after at par
|
| Change-of-control put: | 101%
|
| Trade date: | Oct. 12
|
| Settlement date: | Oct. 17
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
| Fitch: BBB+
|
| Price talk: | Low 200 bps area
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
