By Andrea Heisinger
New York, July 6 - Kroger Co. sold an upsized $300 million of 5.4% 30-year senior unsecured bonds on Tuesday to yield 155 basis points over Treasuries, a source close to the deal said.
The size was increased from an initial $250 million. The notes priced tighter than talk in the 170 bps area, the source said.
The notes (Baa2/BBB/BBB) priced at 99.119 to yield 5.46%. They have a make-whole call at Treasuries plus 25 bps.
The notes are guaranteed by certain subsidiaries.
Bank of America Merrill Lynch, US Bancorp and Wells Fargo Securities LLC ran the books.
Co-managers were BNY Capital Markets LLC, RBS Securities Inc., Rabo Securities USA Inc. and CastleOak Securities LP.
Proceeds are being used for general corporate purposes.
The retail grocery chain is based in Cincinnati.
| Issuer: | Kroger Co.
|
| Issue: | Senior unsecured bonds
|
| Guarantors: | Certain subsidiaries
|
| Amount: | $300 million, increased from $250 million
|
| Maturity: | July 15, 2040
|
| Bookrunners: | Bank of America Merrill Lynch, US Bancorp, Wells Fargo Securities LLC
|
| Co-managers: | BNY Capital Markets LLC, RBS Securities Inc., Rabo Securities USA Inc., CastleOak Securities LP
|
| Coupon: | 5.4%
|
| Price: | 99.119
|
| Yield: | 5.46%
|
| Spread: | Treasuries plus 155 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Trade date: | July 6
|
| Settlement date: | July 13
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
| Price talk: | 170 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.
