Published on 9/25/2018 in the Prospect News Investment Grade Daily.
New Issue: Tyson Foods prices $900 million of five-, 30-year senior notes
By Cristal Cody
Tupelo, Miss., Sept. 25 – Tyson Foods, Inc. sold $900 million of senior notes (Baa2/BBB/BBB) in two tranches on Tuesday on the tight side of guidance, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company placed $400 million of 3.9% five-year notes at 99.861 to yield 3.931%, or a spread of Treasuries plus 95 basis points.
A $500 million tranche of 5.1% 30-year notes priced at 99.574 to yield 5.128%. The bonds priced with a Treasuries plus 190 bps spread.
Morgan Stanley & Co. LLC, Barclays, J.P. Morgan Securities LLC, BofA Merrill Lynch and RBC Capital Markets, LLC were the bookrunners.
Proceeds will be used to repay debt under the company’s term loan facility due 2020 and commercial paper obligations.
The meat and food production company is based in Springdale, Ark.
| Issuer: | Tyson Foods, Inc.
|
| Amount: | $900 million
|
| Description: | Senior notes
|
| Bookrunners: | Morgan Stanley & Co. LLC, Barclays, J.P. Morgan Securities LLC, BofA Merrill Lynch and RBC Capital Markets, LLC
|
| Senior co-managers: | Rabo Securities USA, Inc. and Goldman Sachs & Co. LLC
|
| Co-managers: | Credit Agricole Securities (USA) Inc., Mizuho Securities USA LLC, MUFG, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
|
| Trade date: | Sept. 25
|
| Settlement date: | Sept. 28
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $400 million
|
| Maturity: | Sept. 28, 2023
|
| Coupon: | 3.9%
|
| Price: | 99.861
|
| Yield: | 3.931%
|
| Spread: | Treasuries plus 95 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps; at par on or after one month before maturity
|
| Price guidance: | Treasuries plus 100 bps area, plus or minus 5 bps; initially talked at Treasuries plus 115 bps area
|
|
|
| 30-year notes
|
| Amount: | $500 million
|
| Maturity: | Sept. 28, 2048
|
| Coupon: | 5.1%
|
| Price: | 99.574
|
| Yield: | 5.128%
|
| Spread: | Treasuries plus 190 bps
|
| Call features: | Make-whole call at Treasuries plus 30 bps; at par on or after six months before maturity
|
| Price guidance: | Treasuries plus 195 bps area, plus or minus 5 bps; initially talked at Treasuries plus 210 bps area
|
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