Published on 5/28/2020 in the Prospect News Investment Grade Daily.
New Issue: Brighthouse prices $115 million add-on to 5.625% 10-year notes at 450 bps spread
By Cristal Cody
Tupelo, Miss., May 28 – Brighthouse Financial Inc. priced a $115 million reopening of its 5.625% senior notes due May 15, 2030 (Baa3/BBB+/BBB) on Thursday at 103.186 to yield 5.203%, or a spread of Treasuries plus 450 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
Initial price talk was in the 475 bps over Treasuries area.
The company first sold $500 million of the notes on May 13 at 99.871 to yield 5.642%, or a spread of 500 bps over Treasuries. The total outstanding is now $615 million.
BofA Securities Inc., Goldman Sachs & Co. LLC, Wells Fargo Securities LLC, Barclays, J.P. Morgan Securities LLC, BNP Paribas Securities Corp., HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC, PNC Capital Markets LLC and U.S. Bancorp Investments, Inc. were the bookrunners.
Proceeds will be used to repay the approximately $114 million of remaining borrowings under the company’s unsecured term loan credit facility.
Brighthouse is a Charlotte, N.C.-based insurance provider.
| Issuer: | Brighthouse Financial Inc.
|
| Amount: | $115 million reopening
|
| Description: | Senior notes
|
| Maturity: | May 15, 2030
|
| Bookrunners: | BofA Securities Inc., Goldman Sachs & Co. LLC, Wells Fargo Securities LLC, Barclays, J.P. Morgan Securities LLC, BNP Paribas Securities Corp., HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC, PNC Capital Markets LLC and U.S. Bancorp Investments, Inc.
|
| Co-managers: | Credit Agricole Securities (USA) Inc., Fifth Third Securities, Inc. and American Veterans Group, PBC
|
| Coupon: | 5.625%
|
| Price: | 103.186
|
| Yield: | 5.203%
|
| Spread: | Treasuries plus 450 bps
|
| Call features: | Make-whole before Feb. 15, 2030 at price equal to greater of par and Treasuries plus 50 bps; thereafter at par
|
| Trade date: | May 28
|
| Settlement date: | June 2
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB+
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 475 bps area
|
| Total outstanding: | $615 million, including $500 million of notes priced May 13 at 99.871 to yield 5.642%, or a spread of 500 bps over Treasuries
|
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