By Andrea Heisinger
New York, Dec. 9 - Snap-on Inc. priced $250 million of 4.25% seven-year notes on Thursday at a spread of Treasuries plus 170 basis points, an informed source said.
The notes were sold at the tight end of talk in the 175 bps area, the source said.
The notes (Baa1/A-/) were priced at 99.723 to yield 4.295%.
There is a make-whole call at 25 bps over Treasuries and a change-of-control put at 101%.
Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were the bookrunners.
UBS Securities LLC, Barclays Capital Inc., Mizuho Securities USA Inc., U.S. Bancorp Investments, Inc., BBVA Securities Inc., Commerz Markets LLC, Janney Montgomery Scott LLC, RBC Capital Markets, LLC, Robert W. Baird & Co. Inc., SG Americas Securities, LLC, Wells Fargo Securities, LLC and the Williams Capital Group, LP were the co-managers.
Proceeds will be used for general corporate purposes, including working capital, capital expenditures, repayment of all or a portion of $200 million of 6.25% senior notes maturing in August 2011, financing of contract and financial receivables related to Snap-on Credit LLC and possible acquisitions.
The tool and equipment manufacturer is based in Kenosha, Wis.
| Issuer: | Snap-on Inc.
|
| Issue: | Senior notes
|
| Amount: | $250 million
|
| Maturity: | Jan. 15, 2018
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC
|
| Co-managers: | UBS Securities LLC, Barclays Capital Inc., Mizuho Securities USA Inc., U.S. Bancorp Investments, Inc., BBVA Securities Inc., Commerz Markets LLC, Janney Montgomery Scott LLC, RBC Capital Markets, LLC, Robert W. Baird & Co. Inc., SG Americas Securities, LLC, Wells Fargo Securities, LLC, Williams Capital Group, LP
|
| Coupon: | 4.25%
|
| Price: | 99.723
|
| Yield: | 4.295%
|
| Spread: | Treasuries plus 170 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Change-of-control put: | 101%
|
| Trade date: | Dec. 9
|
| Settlement date: | Dec. 14
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: A-
|
| Price talk: | 175 bps area
|
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