By Andrea Heisinger
New York, Sept. 18 - Kohl's Corp. priced a slightly upsized $350 million offering of 3.25% notes due 2023 on Tuesday at a spread of 145 basis points over Treasuries, an informed source said.
The size of the deal was increased from $300 million, the source said. The bonds were priced tighter than talk in the 150 bps area.
The notes (Baa1/BBB+/BBB+) were sold at 99.994 to yield 3.251%.
The deal will have a make-whole call option at Treasuries plus 25 bps until Nov. 1, 2022 and a par call after that date. There is a change-of-control put feature at 101%.
Bookrunners were Goldman Sachs & Co., UBS Securities LLC and U.S. Bancorp Investments Inc.
Co-managers were Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC.
Proceeds are being used for general corporate purposes, including funding a share repurchase program, for working capital and capital expenditures for store upkeep.
Kohl's was last in the U.S. bond market with a $650 million issue of 4% 10-year notes priced at 183 bps over Treasuries on Oct. 12, 2011.
The department store chain is based in Menomonee Falls, Wis.
| Issuer: | Kohl's Corp.
|
| Issue: | Notes
|
| Amount: | $350 million, increased from $300 million
|
| Maturity: | Feb. 1, 2023
|
| Bookrunners: | Goldman Sachs & Co., UBS Securities LLC, U.S. Bancorp Investments Inc.
|
| Co-managers: | Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC
|
| Coupon: | 3.25%
|
| Price: | 99.994
|
| Yield: | 3.251%
|
| Spread: | Treasuries plus 145 bps
|
| Call: | Make-whole at Treasuries plus 25 bps until Nov. 1, 2022, par call after
|
| Change-of-control put: | 101%
|
| Trade date: | Sept. 18
|
| Settlement date: | Sept. 25
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
| Fitch: BBB+
|
| Price talk: | 150 bps area
|
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