Published on 8/21/2017 in the Prospect News Investment Grade Daily.
New Issue: Tyson Foods prices $900 million of senior notes in two tranches
By Cristal Cody
Tupelo, Miss., Aug. 21 – Tyson Foods, Inc. sold $900 million of senior notes (Baa2/BBB/BBB) in two tranches on Monday, according to an FWP filing with the Securities and Exchange Commission.
The company priced $400 million of three-year floating-rate notes at par to yield Libor plus 45 basis points.
Tyson Foods sold $500 million of 2.25% four-year fixed-rate notes at 99.814 to yield 2.299%, or a spread of Treasuries plus 85 bps.
BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, J.P. Morgan Securities LLC and Barclays were the bookrunners.
Proceeds will be used to repay debt under the company’s term loan tranche due in June 2020 and to pay down other debt.
The meat and food production company is based in Springdale, Ark.
| Issuer: | Tyson Foods, Inc.
|
| Amount: | $900 million
|
| Description: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, J.P. Morgan Securities LLC and Barclays
|
| Senior co-managers: | Goldman Sachs & Co. LLC, Mizuho Securities USA LLC and Rabo Securities USA, Inc.
|
| Co-managers: | Credit Agricole Securities (USA) Inc., MUFG, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
|
| Trade date: | Aug. 21
|
| Settlement date: | Aug. 23
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| Three-year floaters
|
| Amount: | $400 million
|
| Maturity: | Aug. 21, 2020
|
| Coupon: | Libor plus 45 bps
|
| Price: | Par
|
| Yield: | Libor plus 45 bps
|
| Call feature: | Non-callable
|
|
|
| Four-year notes
|
| Amount: | $500 million
|
| Maturity: | Aug. 23, 2021
|
| Coupon: | 2.25%
|
| Price: | 99.814
|
| Yield: | 2.299%
|
| Spread: | Treasuries plus 85 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps; at par on or after one month before maturity
|
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