Published on 2/27/2019 in the Prospect News Investment Grade Daily.
New Issue: Travelers prices $500 million 4.1% 30-year senior notes at 107 bps over Treasuries
By Cristal Cody
Tupelo, Miss., Feb. 27 – Travelers Cos., Inc. priced $500 million of 4.1% 30-year senior notes (A2/A/A) on Wednesday at a spread of Treasuries plus 107 basis points, on the tight side of guidance in the 110 bps spread area, according to a market source an FWP filing with the Securities and Exchange Commission.
The notes priced at 99.623 to yield 4.122%.
Goldman Sachs & Co. LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC and U.S. Bancorp Investments, Inc. were the bookrunners.
Proceeds will be used to retire the company’s $500 million of 5.9% senior notes due June 2, 2019.
Travelers is a New York-based holding company for auto, home and business property casualty insurance companies.
Issuer: | Travelers Cos., Inc.
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Amount: | $500 million
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Description: | Senior notes
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Maturity: | March 4, 2049
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Bookrunners: | Goldman Sachs & Co. LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC and U.S. Bancorp Investments, Inc.
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Co-managers: | Barclays, BB&T Capital Markets, BNY Mellon Capital Markets, LLC, Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc. and TD Securities (USA) LLC
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Coupon: | 4.1%
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Price: | 99.623
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Yield: | 4.122%
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Spread: | Treasuries plus 107 bps
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Call features: | Make-whole call before Sept. 4, 2048 at Treasuries plus 20 bps; thereafter at par
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Trade date: | Feb. 27
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Settlement date: | March 4
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Ratings: | Moody’s: A2
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| S&P: A
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| Fitch: A
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Distribution: | SEC registered
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Price guidance: | Treasuries plus 110 bps area, plus or minus 3 bps; initial talk at 125 bps spread area
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