By Andrea Heisinger
Omaha, Jan. 9 - The Kroger Co. priced an upsized $750 million in 6.15% 12-year senior notes Wednesday to yield Treasuries plus 240 basis points, an informed source said.
The issue was increased from a planned $500 million and priced tighter than price talk that was in the 245 bps area.
The notes (Baa2/BBB-/BBB) priced at 99.749 to yield 6.18%. They have a make-whole call at Treasuries plus 35 bps.
Bookrunners were Citigroup Capital Markets Inc. and RBS Greenwich Capital.
Co-managers were Banc of America Securities LLC, J.P. Morgan Securities Inc., Lazard Capital Markets LLC, Piper Jaffray & Co., Rabo Securities USA, Inc., BNY Capital Markets, Inc. and CastleOak Securities, LP.
Proceeds will be used to repay short-term borrowings and to repurchase, repay or redeem outstanding debt and for general corporate purposes.
The grocery store chain is based in Cincinnati.
| Issuer: | The Kroger Co.
|
| Issue: | Senior notes
|
| Amount: | $750 million, upsized from $500 million
|
| Maturity: | Jan. 15, 2020
|
| Bookrunners: | Citigroup Capital Markets Inc., RBS Greenwich Capital
|
| Co-managers: | Banc of America Securities LLC, J.P. Morgan Securities Inc., Lazard Capital Markets LLC, Piper Jaffray & Co., Rabo Securities USA, Inc., BNY Capital Markets, Inc. and CastleOak Securities, LP
|
| Coupon: | 6.15%
|
| Price: | 99.749
|
| Yield: | 6.18%
|
| Spread: | Treasuries plus 240 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
| Trade date: | Jan. 9
|
| Settlement date: | Jan. 16
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB-
|
| Fitch: BBB
|
| Price talk: | 245 bps area
|
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