By Cristal Cody
Chicago, Nov. 15 – Stewart Information Services Corp. priced $450 million of 3.6% 10-year notes (//BBB-) for a 200 basis points spread over Treasuries, according to a market source.
The notes, priced Wednesday, has been talked for a spread in the Treasuries plus 212.5 bps to 225 bps area.
There will be an optional make-whole call until a number of months before the maturity date when there will be a par call, according to a 424B2 filing with the Securities and Exchange Commission.
Goldman Sachs & Co. LLC and PNC Capital Markets LLC are listed as bookrunners.
Proceeds will be used to repay all outstanding amounts under a new term loan and for general corporate purposes. There was $370 million outstanding on the term loan on Oct. 28.
General corporate purposes may include acquisitions, funding for working capital, the repayment or repurchase of debt or other liabilities, repurchase of capital stock and other capital expenditures.
Funds may be used for temporary investments until they are needed for general corporate purposes.
Stewart Information Services is a Houston-based title insurance company.
| Issuer: | Stewart Information Services Corp.
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| Issue: | Notes
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| Amount: | $450 million
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| Maturity: | Nov. 15, 2031
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| Bookrunners: | Goldman Sachs & Co. LLC and PNC Capital Markets LLC
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| Trustee: | Computershare Trust Co., NA
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| Counsel to issuer: | Davis Polk & Wardwell LLP
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| Coupon: | 3.6%
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| Spread: | Treasuries plus 200 bps
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| Call features: | Make-whole call that converts to par call
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| Trade date: | Nov. 17
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| Settlement date: | Nov. 24
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| Ratings: | Fitch: BBB-
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| Distribution: | SEC registered
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| Price talk: | Treasuries plus 212.5 bps to 225 bps area
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