New Issue: Land O'Lakes sells upsized $300 million 10-year split-rated notes at par to yield 6%

By Paul A. Harris

Portland, Ore., Nov. 7 - Land O'Lakes, Inc. priced an upsized $300 million of non-callable 10-year senior notes (Ba2/BBB-/) at par to yield 6% on Wednesday, according to a syndicate source.

The yield printed on top of the yield talk.

Bank of America Merrill Lynch was the bookrunner for the deal, which was upsized from $250 million.

The Arden Hills, Minn.-based branded food and agriculture supply cooperative plans to use the proceeds to pay down its revolving credit facility.

Issuer:	Land O'Lakes, Inc.
Amount:	$300 million, increased from $250 million
Maturity:	Nov. 15, 2022
Securities:	Senior notes
Bookrunner:	Bank of America Merrill Lynch
Co-managers:	Mitsubishi UFJ Securities (USA) Inc., Rabo Securities USA Inc., U.S. Bancorp Investments Inc., Wells Fargo Securities LLC
Coupon:	6%
Price:	Par
Yield:	6%
Spread:	436 bps
Call protection:	Non-callable (par call three months prior to maturity)
Make-whole:	Treasuries plus 50 bps
Trade date:	Nov. 7
Settlement date:	Nov. 13
Ratings:	Moody's: Ba2
	Standard & Poor's: BBB-
Distribution:	Rule 144A for life
Price talk:	6% area
Marketing:	Brief roadshow

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