By Aleesia Forni
Virginia Beach, Sept. 9 – Valmont Industries Inc. detailed its $500 million issue of senior notes (Baa2/BBB+/) in tranches due 2044 and 2054 in a FWP filed with the Securities and Exchange Commission on Tuesday.
There was $250 million of 5% 30-year bonds priced at 99.536 to yield 5.03%, or Treasuries plus 180 basis points.
A second $250 million tranche of 5.25% notes due 2054 priced at 98.68 to yield 5.33%. The notes sold with a spread of Treasuries plus 210 bps.
Both tranches priced at the tight end of talk.
The bookrunners were Goldman Sachs & Co., BofA Merrill Lynch, U.S. Bancorp Investments Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC.
Proceeds will be used to fund a tender offer as well as for general corporate purposes.
The Omaha-based company designs and manufactures fabricated metal products.
| Issuer: | Valmont Industries Inc.
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Joint bookrunners: | Goldman Sachs & Co., BofA Merrill Lynch, U.S. Bancorp Investments Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Senior co-manager: | ANZ Securities Inc.
|
| Co-managers: | Morgan Stanley & Co. LLC, Rabo Securities USA Inc., Williams Capital Group LP
|
| Trade date: | Sept. 8
|
| Settlement date: | Sept. 18
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: BBB+
|
| Distribution: | SEC registered
|
|
|
| 30-year bonds
|
| Amount: | $250 million
|
| Maturity: | Oct. 1, 2044
|
| Coupon: | 5%
|
| Price: | 99.536
|
| Yield: | 5.03%
|
| Spread: | Treasuries plus 180 bps
|
| Price talk: | Treasuries plus 185 bps area
|
| Make-whole call: | Treasuries plus 30 bps prior to April 1, 2044, then callable at par
|
|
|
| 40-year bonds
|
| Amount: | $250 million
|
| Maturity: | Oct. 1, 2054
|
| Coupon: | 5.25%
|
| Price: | 98.68
|
| Yield: | 5.33%
|
| Spread: | Treasuries plus 210 bps
|
| Price talk: | Treasuries plus 215 bps area
|
| Make-whole call: | Treasuries plus 35 bps prior to April 1, 2054, then callable at par
|
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