Published on 2/2/2021 in the Prospect News High Yield Daily.
New Issue: Levi Strauss prices $500 million 10-year notes at par to yield 3½%
By Paul A. Harris
Portland, Ore., Feb. 2 – Levi Strauss & Co. priced a $500 million issue of 10-year senior notes (Ba2/BB+) at par to yield 3½% in a Tuesday drive-by, according to market sources.
The yield printed at the tight end of the 3½% to 3¾% yield talk. Initial talk was in the high 3% area to 4%.
BofA Securities Inc. and J.P. Morgan Securities LLC were the joint bookrunners.
The San Francisco-based clothing company plans to use the proceeds plus cash on hand to redeem $800 million of its 5% senior notes due 2025 that are outstanding.
| Issuer: | Levi Strauss & Co.
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| Amount: | $500 million
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| Maturity: | March 1, 2031
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| Securities: | Senior notes
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| Joint bookrunners: | BofA Securities Inc. and J.P. Morgan Securities LLC
|
| Co-managers: | BNP Paribas Securities Corp., HSBC Securities (USA) Inc., Goldman Sachs & Co. LLC, Scotia Capital (USA) Inc., Morgan Stanley & Co. LLC, RBC Capital Markets LLC, Standard Chartered Bank, Truist Securities Inc. and Santander Investment Securities Inc.
|
| Coupon: | 3½%
|
| Price: | Par
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| Yield: | 3½%
|
| Spread: | 240 bps
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| First call: | Make-whole call until March 1, 2026, then callable at 101.75
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| Trade date: | Feb. 2
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| Settlement date: | Feb. 19
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| Ratings: | Moody’s: Ba2
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| S&P: BB+
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| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 3½% to 3¾%
|
| Marketing: | Drive-by
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