Published on 8/12/2014 in the Prospect News Investment Grade Daily.
New Issue: Laclede prices $625 million of senior notes in three-, five-, 30-year tranches
By Aleesia Forni
Virginia Beach, Aug. 12 – The Laclede Group Inc. sold a $625 million three-part offering of senior notes (Baa2/BBB+/BBB+) on Tuesday, according to an informed source and an FWP filed with the Securities and Exchange Commission.
The sale included $250 million of floating-rate notes due 2017 priced at par to yield Libor plus 75 basis points.
A $125 million fixed-rate tranche of 2.55% five-year notes sold at 99.805 to yield 2.592%, or Treasuries plus 98 bps.
There was also a $250 million tranche of 4.7% 30-year bonds sold at 99.905 to yield 4.706%, or Treasuries plus 145 bps.
Credit Suisse Securities (USA) LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used to fund the acquisition of Alabama Gas Corp.
The utility holding company is based in St. Louis.
| Issuer: | Laclede Group Inc.
|
| Issue: | Senior notes
|
| Amount: | $625 million
|
| Joint bookrunners: | Credit Suisse Securities (USA) LLC, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC
|
| Senior co-manger: | Fifth Third Securities Inc.
|
| Co-managers: | BBVA Securities Inc., Commerce Bank, Regions Securities LLC, UMB Financial Services, Inc.
|
| Trade date: | Aug. 12
|
| Settlement date: | Aug. 19
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: BBB+
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| Three-year floaters
|
| Amount: | $250 million
|
| Maturity: | Aug. 15, 2017
|
| Coupon: | Libor plus 75 bps
|
| Price: | Par
|
| Yield: | Libor plus 75 bps
|
| Price talk: | Libor plus 75 bps
|
|
|
| Five-year notes
|
| Amount: | $125 million
|
| Maturity: | Aug. 15, 2019
|
| Coupon: | 2.55%
|
| Price: | 99.805
|
| Yield: | 2.592%
|
| Spread: | Treasuries plus 98 bps
|
| Price talk: | Treasuries plus 100 bps area, tightened from Treasuries plus 100 bps to 105 bps
|
| Make-whole call: | Treasuries plus 15 bps prior to July 15, 2019, then callable at par
|
|
|
| 30-year bonds
|
| Amount: | $250 million
|
| Maturity: | Aug. 15, 2044
|
| Coupon: | 4.7%
|
| Price: | 99.905
|
| Yield: | 4.706%
|
| Spread: | Treasuries plus 145 bps
|
| Price talk: | Treasuries plus 145 bps to 150 bps
|
| Make-whole call: | Treasuries plus 25 bps prior to Feb. 15, 2044, then callable at par
|
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