Published on 10/19/2016 in the Prospect News Investment Grade Daily.
New Issue: Nike details $1.5 billion of 2.375% notes due 2026, 3.375% notes 2046
By Devika Patel
Knoxville, Tenn., Oct. 19 – Nike, Inc. gave further details about a $1.5 billion offering of notes (A1/AA-) in an FWP filing with the Securities and Exchange Commission. The deal priced in two tranches on Tuesday.
The 2.375% 10-year notes priced at 99.858 to yield 2.391% in a $1 billion tranche at a spread of Treasuries plus 65 basis points.
Nike sold $500 million of 3.375% 30-year notes at 93 bps over Treasuries. These notes priced at 98.899 to yield 3.434%.
Both tranches priced on the tight side of talk.
The 10-year notes feature a make-whole call at Treasuries plus 10 basis points until Aug. 1, 2026, and then a par call.
The 30-year notes feature a make-whole call at Treasuries plus 15 basis points until May 1, 2046, and then a par call.
BofA Merrill Lynch, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. were the bookrunners.
The Beaverton, Ore.-based sports footwear and apparel company plans to use the proceeds for general corporate purposes.
| Issuer: | Nike, Inc.
|
| Amount: | $1.5 billion
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| Description: | Notes
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| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc.
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| Co-managers: | Goldman Sachs & Co., J.P. Morgan Securities LLC, RBC Capital Markets Corp., Wells Fargo Securities LLC, Barclays, Credit Agricole Securities (USA) Inc., ING Financial Markets LLC, Santander Investment Securities Inc., Standard Chartered Bank, HSBC Securities (USA) Inc., Loop Capital Markets LLC and Williams Capital Group LP
|
| Trade date: | Oct. 18
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| Settlement date: | Oct. 21
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| Ratings: | Moody’s: A1
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| S&P: AA-
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| Distribution: | SEC registered
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|
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| Ten-year notes
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| Amount: | $1 billion
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| Maturity: | Nov. 1, 2026
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| Coupon: | 2.375%
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| Price: | 99.858
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| Yield: | 2.391%
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| Spread: | Treasuries plus 65 bps
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| Price guidance: | Treasuries plus 70 bps area, plus or minus 5 bps
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| Call feature: | Make-whole call at Treasuries plus 10 bps until Aug. 1, 2026, then a par call
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|
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| Thirty-year notes
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| Amount: | $500 million
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| Maturity: | Nov. 1, 2046
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| Coupon: | 3.375%
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| Price: | 98.899
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| Yield: | 3.434%
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| Spread: | Treasuries plus 93 bps
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| Price guidance: | Treasuries plus 95 bps area, plus or minus 2 bps
|
| Call feature: | Make-whole call at Treasuries plus 15 bps until May 1, 2046, then a par call
|
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