By Andrea Heisinger
New York, May 18 - Liberty Mutual Group, Inc. sold an upsized $600 million of 5% 10-year notes on Wednesday to yield Treasuries plus 210 basis points, an informed source said.
The size was doubled from $300 million. The notes were sold at the tight end of guidance, which was in the 220 bps area, plus or minus 10 bps, the source said.
The notes (Baa2/BBB-/BBB-) were sold at 98.879 to yield 5.275%. They have a make-whole call at 35 bps over Treasuries.
Bank of America Merrill Lynch, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were the bookrunners.
Proceeds are being used for general corporate purposes, including capital contributions to insurance subsidiaries.
The property and casualty insurance company is based in Boston.
| Issuer: | Liberty Mutual Group, Inc.
|
| Issue: | Notes
|
| Amount: | $600 million, increased from $300 million
|
| Maturity: | June 1, 2021
|
| Bookrunners: | Bank of America Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC
|
| Coupon: | 5%
|
| Price: | 98.879
|
| Yield: | 5.275%
|
| Spread: | Treasuries plus 210 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
| Distribution: | Rule 144A
|
| Trade date: | May 18
|
| Settlement date: | May 23
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
| Price talk: | 220 bps area, plus or minus 10 bps
|
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