By Aleesia Forni
Virginia Beach, Jan. 23 - Kroger Co. priced a $500 million offering of 10-year 4% senior notes (Baa2/BBB/BBB) on Thursday with a spread of Treasuries plus 125 basis points, according to a syndicate source and an FWP filing with the Securities and Exchange Commission.
The notes priced tighter than talk, which was set in the area of 130 basis points over Treasuries area.
Pricing was at 99.796 to yield 4.025%.
Citigroup Global Markets Inc., RBC Capital Markets LLC, Wells Fargo Securities LLC and RBS Securities Inc. were the bookrunners.
Proceeds will be used to refinance long-term debt that matured on Jan. 15 and for general corporate purposes.
The Cincinnati-based grocery retailer was last in the U.S. bond market with $2 billion of senior notes that priced in four tranches on Dec. 16.
The deal included $500 million of three-year floating-rate notes sold to yield Libor plus 53 basis points and $300 million of 1.2% notes due 2016 priced with a spread of Treasuries plus 55 bps.
A $500 million issue of 2.3% notes due 2019 sold at 80 bps over Treasuries and $700 million of 3.3% seven-year notes priced at Treasuries plus 110 bps.
| Issuer: | Kroger
|
| Amount: | $500 million
|
| Description: | Senior notes
|
| Maturity: | Feb. 1, 2024
|
| Bookrunners: | Citigroup Global Markets Inc., RBC Capital Markets LLC, RBS Securities Inc., Wells Fargo Securities LLC
|
| Co-managers: | Fifth Third Securities, Inc., BNY Mellon Capital Markets, LLC, Drexel Hamilton, LLC, Goldman, Sachs & Co., Mitsubishi UFJ Securities (USA), Inc.
|
| Coupon: | 4%
|
| Price: | 99.796
|
| Yield: | 4.025%
|
| Spread: | Treasuries plus 125 bps
|
| Trade date: | Jan. 23
|
| Settlement date: | Jan. 30
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
| Price talk: | Treasuries plus 130 bps area
|
| Make-whole call: | Treasuries plus 20 bps prior to Nov. 1, 2023, then callable at par
|
| Distribution: | SEC-registered
|
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