By Andrea Heisinger
New York, Oct. 23 - Block Financial LLC priced its $500 million offering of 5.5% 10-year senior notes late on Monday at Treasuries plus 375 basis points, according to an FWP filing with the Securities and Exchange Commission.
The notes (Baa2/BBB/) were sold in line with talk in the the Treasuries plus 375 bps area.
Pricing was at 99.437 to yield 5.574%.
There is a make-whole call at 60 bps over Treasuries until May 1, 2022, with a par call after that date.
The notes feature a change-of-control put at 101% if the company falls below investment-grade ratings.
J.P. Morgan Securities LLC was the active bookrunner. Passive bookrunners were Credit Agricole Securities (USA) Inc., SunTrust Robinson Humphrey Inc. and TD Securities (USA) LLC.
Proceeds will be used to repurchase, tender, redeem or repay 7.875% senior notes due 2013 and for general corporate purposes.
The notes are guaranteed by H&R Block, Inc.
Block Financial was last in the bond market with a $600 million sale of 7.875% five-year notes priced at 481.9 bps over Treasuries on Jan. 9, 2008.
The tax preparation and financial services company is based in Kansas City, Mo.
| Issuer: | Block Financial LLC
|
| Guarantor: | H&R Block, Inc.
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Maturity: | Nov. 1, 2022
|
| Bookrunners: | J.P. Morgan Securities LLC (active), Credit Agricole Securities (USA) Inc., SunTrust Robinson Humphrey Inc., TD Securities (USA) LLC (passive)
|
| Co-managers: | BMO Capital Markets Corp., CIBC World Markets Corp., U.S. Bancorp Investments, Inc., RBC Capital Markets LLC, RBS Securities Inc.
|
| Coupon: | 5.5%
|
| Price: | 99.437
|
| Yield: | 5.574%
|
| Spread: | Treasuries plus 375 bps
|
| Call: | Make-whole at Treasuries plus 60 bps until May 1, 2022, par call after
|
| Change-of-control put: | 101% if drop below investment-grade ratings
|
| Trade date: | Oct. 22
|
| Settlement date: | Oct. 25
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Price talk: | 375 bps area
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
