By Cristal Cody
Tupelo, Miss., Feb. 27 - Lexmark International, Inc. sold an upsized $400 million offering of 5.125% seven-year senior notes (Baa3/BBB-/) at 99.998 to yield 5.125% on Wednesday, according to a source close to the deal.
The notes due March 15, 2020 priced at a spread of 389.4 basis points over Treasuries.
The offering was upsized from $300 million.
J.P. Morgan Securities LLC and Citigroup Global Markets Inc. were the joint bookrunners.
The issue has a 101% change-of-control put and a make-whole call at Treasuries plus 50 bps.
The notes are redeemable at any time, in whole or in part, at Lexmark's option, on at least 30 days prior notice.
Proceeds will be used to redeem the company's 5.9% senior notes due June 1, 2013 and for general corporate funds to repay other debt, finance capital expenditures and operating expenses, fund share repurchases, fund dividends, finance acquisitions and invest in subsidiaries.
Lexmark is a Lexington, Ky.-based imaging, printing and software company.
| Issuer: | Lexmark International, Inc.
|
| Amount: | $400 million
|
| Maturity: | March 15, 2020
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc.
|
| Senior managers: | Mitsubishi UFJ Securities (USA), Inc., SunTrust Robinson Humphrey, Inc.
|
| Junior co-managers: | BB&T Capital Markets, Fifth Third Securities, Inc., BofA Merrill Lynch, Scotia Capital (USA) Inc., Williams Capital Group, LP
|
| Coupon: | 5.125%
|
| Price: | 99.998
|
| Yield: | 5.125%
|
| Spread: | 389.4 bps over Treasuries
|
| Call feature: | Make-whole call at Treasuries plus 50 bps
|
| Put option: | 101%
|
| Pricing date: | Feb. 27
|
| Settlement date: | March 4
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
