Published on 1/7/2019 in the Prospect News Investment Grade Daily.
New Issue: Kroger prices $1.2 billion of 10-, 30-year senior notes
By Cristal Cody
Tupelo, Miss., Jan. 7 – Kroger Co. sold $1.2 billion of senior notes (Baa1/BBB) in two tranches on Monday, according to an FWP filing with the Securities and Exchange Commission.
Kroger priced $600 million of 4.5% 10-year notes at 99.403 to yield 4.575% and a spread of Treasuries plus 190 basis points.
A $600 million tranche of 5.4% 30-year notes was sold at 99.646 to yield 5.424%, or a spread of 245 bps over Treasuries.
Wells Fargo Securities LLC, Citigroup Global Markets Inc., U.S. Bancorp Investments Inc., BB&T Capital Markets, BNY Mellon Capital Markets, LLC and MUFG were the bookrunners for the 10-year notes.
On the 30-year tranche, Wells Fargo, Goldman Sachs & Co. LLC, BofA Merrill Lynch, Fifth Third Securities, Inc., RBC Capital Markets, LLC and Santander Investment Securities Inc. were the bookrunners.
Proceeds will be used to refinance debt, including debt that matures this month, and for general corporate purposes.
Kroger is a Cincinnati-based grocery retailer.
| Issuer: | Kroger Co.
|
| Amount: | $1.2 billion
|
| Description: | Senior notes
|
| Trade date: | Jan. 7
|
| Settlement date: | Jan. 14
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $600 million
|
| Maturity: | Jan. 15, 2029
|
| Bookrunners: | Wells Fargo Securities LLC, Citigroup Global Markets Inc., U.S. Bancorp Investments Inc., BB&T Capital Markets, BNY Mellon Capital Markets, LLC and MUFG
|
| Co-managers: | Fifth Third Securities, Inc., Goldman Sachs & Co. LLC, BofA Merrill Lynch, Mizuho Securities USA LLC, PNC Capital Markets LLC, RBC Capital Markets, LLC, Santander Investment Securities Inc. and Drexel Hamilton, LLC
|
| Coupon: | 4.5%
|
| Price: | 99.403
|
| Yield: | 4.575%
|
| Spread: | Treasuries plus 190 bps
|
| Call features: | Make-whole call at Treasuries plus 30 bps; on or after Oct. 15, 2028 at par
|
|
|
| 30-year notes
|
| Amount: | $600 million
|
| Maturity: | Jan. 15, 2049
|
| Bookrunners: | Wells Fargo Securities LLC, Goldman Sachs & Co. LLC, BofA Merrill Lynch, Fifth Third Securities, Inc., RBC Capital Markets, LLC and Santander Investment Securities Inc.
|
| Co-managers: | BB&T Capital Markets, BNY Mellon Capital Markets, LLC, Citigroup Global Markets Inc., Mizuho Securities USA LLC, MUFG, PNC Capital Markets LLC, U.S. Bancorp Investments Inc. and Williams Capital Group, LP
|
| Coupon: | 5.4%
|
| Price: | 99.646
|
| Yield: | 5.424%
|
| Spread: | Treasuries plus 245 bps
|
| Call features: | Make-whole call at Treasuries plus 40 bps; on or after July 15, 2048 at par
|
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