By Andrea Heisinger
New York, Feb. 19 - Wyndham Worldwide Corp. has priced an upsized $850 million of notes (Baa3/BBB-/BBB-) in two tranches during Tuesday's session, a market source told Prospect News.
The size was increased from $750 million.
A $450 million tranche of 2.5% five-year notes sold at 99.868 to yield 2.528% with a spread of Treasuries plus 165 basis points. There is a make-whole call at 25 bps over Treasuries until Feb. 1, 2018, and then a par call.
The second part was $400 million of 3.9% 10-year notes priced at 99.826 to yield 3.921% with a spread of 190 bps over Treasuries. The 10-year note has a make-whole redemption at Treasuries plus 30 bps until Dec. 1, 2022 and a par call after that date.
There is a change-of-control put at 101%.
Bookrunners were J.P. Morgan Securities LLC, BofA Merrill Lynch and Deutsche Bank Securities Inc. Additionally, the five-year note has RBS Securities Inc. as a bookrunner, and the 10-year note has Credit Suisse Securities (USA) LLC.
Proceeds will be used to repurchase any and all $250 million of 5.75% notes due 2018 and $250 million of outstanding 7.375% notes due 2020 in a tender offer that began on Feb. 6; the planned call of 9.875% senior notes due 2014; the repayment, redemption, repurchase, defeasance, or retirement of other debt including commercial paper and other outstanding debt.
Wyndham was last in the U.S. bond market with a $150 million reopening of 4.25% notes due 2022 on March 12, 2012.
The hospitality and lodging company is based in Bethesda, Md.
| Issuer: | Wyndham Worldwide Corp.
|
| Issue: | Notes
|
| Amount: | $850 million, upsized from $750 million
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, Deutsche Bank Securities Inc. (both tranches), RBS Securities Inc. (five-year notes), Credit Suisse Securities (USA) LLC (10-year notes)
|
| Change-of-control put: | 101%
|
| Trade date: | Feb. 19
|
| Settlement date: | Feb. 22
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
|
|
| Five-year notes
|
| Amount: | $450 million
|
| Maturity: | March 1, 2018
|
| Coupon: | 2.5%
|
| Price: | 99.868
|
| Yield: | 2.528%
|
| Spread: | Treasuries plus 165 bps
|
| Call: | Make-whole at Treasuries plus 25 bps until Feb. 1, 2018, par call after
|
|
|
| 10-year notes
|
| Amount: | $400 million
|
| Maturity: | March 1, 2023
|
| Coupon: | 3.9%
|
| Price: | 99.826
|
| Yield: | 2.921%
|
| Spread: | Treasuries plus 190 bps
|
| Call: | Make-whole at Treasuries plus 30 bps until Dec. 1, 2022, par call after
|
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