New Issue: Block Financial sells $650 million of 3.875% 10-year notes at 340 bps over Treasuries

By Cristal Cody

Tupelo, Miss., Aug. 4 – Block Financial LLC priced $650 million of 3.875% 10-year senior notes (Baa3/BBB) on Tuesday at 99.687 to yield 3.913%, or a spread of Treasuries plus 340 basis points, according to a market source and an FWP filed with the Securities and Exchange Commission.

Initial guidance was in the Treasuries plus 375 bps to 387.5 bps area.

J.P. Morgan Securities LLC, BofA Securities Inc., TD Securities (USA) LLC, U.S. Bancorp Investments Inc., PNC Capital Markets LLC and Truist Securities, Inc. were the bookrunners.

The notes are guaranteed by H&R Block, Inc.

Proceeds will be used for general corporate purposes, including refinancing existing debt.

The tax preparation and financial services company is based in Kansas City, Mo.

Issuer:	Block Financial LLC
Guarantor:	H&R Block, Inc.
Amount:	$650 million
Maturity:	Aug. 15, 2030
Securities:	Senior notes
Bookrunners:	J.P. Morgan Securities LLC, BofA Securities Inc., TD Securities (USA) LLC, U.S. Bancorp Investments Inc., PNC Capital Markets LLC and Truist Securities, Inc.
Co-manager:	BBVA Securities Inc., BMO Capital Markets Corp., RBC Capital Markets, LLC and Wells Fargo Securities, LLC
Coupon:	3.875%
Price:	99.687
Yield:	3.913%
Spread:	Treasuries plus 340 bps
Call features:	Make-whole call at greater of par and Treasuries plus 50 bps before May 15, 2030; thereafter at par
Change-of-control put:	101%
Pricing date:	Aug. 4
Settlement date:	Aug. 7
Ratings:	Moody’s: Baa3
	S&P: BBB
Distribution:	SEC registered
Price guidance:	Treasuries plus 375 bps-387.5 bps area

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