By Paul A. Harris
Portland, Ore., Oct. 17 – Tesco plc (Ba1/BB+/BBB-) priced €750 million of 1 3/8% five-year guaranteed senior notes at a 110 basis points spread to mid-swaps, according to market sources.
The spread came on top of spread talk, which had been revised from earlier guidance in the 115 bps area.
The deal, which came in an investment-grade execution, played to €4.4 billion of orders, an informed source said.
Joint bookrunner MUFG will bill and deliver. BNP Paribas, Citigroup and Goldman Sachs International were also joint bookrunners.
Proceeds will be used to finance the purchase of other publicly listed Tesco bonds.
Tesco is a grocery and merchandise retailer based in Welwyn Garden City, U.K.
| Issuer: | Tesco Corporate Treasury Services plc
|
| Amount: | €750 million
|
| Maturity: | Oct. 24, 2023
|
| Securities: | Senior notes
|
| Bookrunners: | MUFG (bill and deliver), BNP Paribas, Citigroup, Goldman Sachs
|
| Coupon: | 1 3/8%
|
| Price: | 99.488
|
| Yield: | 1.482%
|
| Spread: | Mid-swaps plus 110 bps
|
| Trade date: | Oct. 17
|
| Settlement date: | Oct. 24
|
| Issuer ratings: | Moody's: Ba1
|
| S&P: BB+
|
| Fitch: BBB-
|
| Distribution: | Regulation S
|
| Price talk: | Mid-swaps plus 110 bps
|
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