Published on 3/9/2015 in the Prospect News Investment Grade Daily.
New Issue: ACE INA sells $800 million 3.15% 10-year notes at 95 bps spread
By Aleesia Forni
Virginia Beach, March 9 – ACE INA Holdings Inc. sold $800 million of 3.15% 10-year senior notes (A3/A+/A+) with a spread of Treasuries plus 95 basis points on Monday, according to a market source.
Pricing was at the tight end of the Treasuries plus 98 bps area guidance, which firmed from initial talk set at Treasuries plus 105 bps to 110 bps.
The notes sold at 99.983 to yield 3.152%.
Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the joint bookrunners.
The company plans to use the proceeds from the offering to repay $500 million of its 5.7% senior notes due February 2017 and $300 million of its 5.8% senior notes due March 2018.
The notes are guaranteed by ACE Ltd.
The Bermuda-based holding company for insurance and reinsurance subsidiaries is a unit of Zurich-based ACE Ltd.
| Issuer: | ACE INA Holdings Inc.
|
| Guarantor: | ACE Ltd.
|
| Amount: | $800 million
|
| Description: | Senior notes
|
| Maturity: | March 15, 2025
|
| Bookrunners: | Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Senior co-managers: | ANZ Securities, Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., HSBC Securities (USA) Inc., MUFG
|
| Co-managers: | Barclays, BNY Mellon Capital Markets LLC, ING Financial Markets LLC, Lloyds Securities Inc., BofA Merrill Lynch, RBC Capital Markets LLC, RBS Securities Inc., Standard Chartered Bank
|
| Coupon: | 3.15%
|
| Price: | 99.983
|
| Yield: | 3.152%
|
| Spread: | 95 bps over Treasuries
|
| Make-whole call: | 15 bps
|
| Trade date: | March 9
|
| Settlement date: | March 16
|
| Ratings: | Moody’s: A3
|
| Standard & Poor’s: A+
|
| Fitch: A+
|
| Distribution: | SEC registered
|
| Price talk: | 98 bps area over Treasuries, tightened from 105 bps to 110 bps
|
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