New Issue: Kroger prices $500 million of 2.2% 10-year senior notes at 165 bps over Treasuries

By Cristal Cody

Tupelo, Miss., April 21 – Kroger Co. priced $500 million of 2.2% 10-year senior notes (Baa1/BBB) at 99.786 to yield 2.224% and a spread of Treasuries plus 165 basis points on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.

Initial price talk was in the Treasuries plus 215 bps area.

BofA Securities Inc., Citigroup Global Markets Inc., U.S. Bancorp Investments Inc., Mizuho Securities USA Inc., PNC Capital Markets LLC and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be used for general corporate purposes.

Kroger is a Cincinnati-based grocery retailer.

Issuer:	Kroger Co.
Amount:	$500 million
Description:	Senior notes
Maturity:	May 1, 2030
Bookrunners:	BofA Securities Inc., Citigroup Global Markets Inc., U.S. Bancorp Investments Inc., Mizuho Securities USA Inc., PNC Capital Markets LLC and Wells Fargo Securities LLC
Co-managers:	BNY Mellon Capital Markets, LLC, Fifth Third Securities, Inc., Goldman Sachs & Co. LLC, MUFG, RBC Capital Markets, LLC, Santander Investment Securities Inc., Siebert Williams Shank & Co., LLC and SunTrust Robinson Humphrey, Inc.
Coupon:	2.2%
Price:	99.786
Yield:	2.224%
Spread:	Treasuries plus 165 bps
Call feature:	Make-whole before Feb. 1, 2030 at Treasuries plus 25 bps; thereafter at par
Change-of-control put:	101%
Trade date:	April 21
Settlement date:	April 28
Ratings:	Moody’s: Baa1
	S&P: BBB
Distribution:	SEC registered
Price talk:	Treasuries plus 215 bps area

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