By Aleesia Forni and Paul A. Harris
Portland, Ore., March 24 – VeriSign Inc. sold an upsized $500 million issue of non-callable 10-year senior notes (Ba1/BB+) at par to yield 5¼% on Tuesday, according to market sources.
The deal was upsized from $400 million.
Pricing was at the tight end of guidance set at 5¼% to 5½%. Initial talk was in the 5½% area.
The notes come with investment-grade covenants.
However, the deal was priced on the high-yield syndicate desk, according to a trader.
J.P. Morgan Securities LLC, BofA Merrill Lynch and U.S. Bancorp Investments Inc. were the joint bookrunners.
Proceeds will be used for general corporate purposes, including the repurchase of shares under its share repurchase program.
VeriSign is an internet infrastructure services provider based in Reston, Va.
| Issuer: | VeriSign Inc.
|
| Amount: | $500 million, increased from $400 million
|
| Maturity: | 2025
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, U.S. Bancorp Investments Inc.
|
| Co-manager: | BB&T
|
| Coupon: | 5¼%
|
| Price: | Par
|
| Yield: | 5¼%
|
| Call protection: | Callable at par three months prior to maturity, otherwise non-callable
|
| Trade date: | March 24
|
| Settlement date: | March 27
|
| Ratings: | Moody’s: Ba1
|
| Standard & Poor’s: BB+
|
| Distribution: | Rule 144A, Regulation S with registration rights
|
| Price talk: | 5¼% to 5½%, earlier guidance was 5½% area
|
| Marketing: | Roadshow
|
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