By Aleesia Forni
Virginia Beach, Sept. 25 – Block Financial LLC was in Friday’s market with a $1 billion offering of senior notes (Baa3/BBB) in five- and 10-year tranches, according to a market source.
The sale included $650 million of 4.125% five-year notes priced at 99.674 to yield 4.198%, or Treasuries plus 275 basis points.
Pricing was at the tight end of guidance set in the range of Treasuries plus 275 bps to 287.5 bps, tightened from talk in the Treasuries plus 287.5 bps area.
A $350 million tranche of 5.25% 10-year notes sold at 99.7 to yield 5.289% with a spread of Treasuries plus 312.5 bps.
Guidance was set in the Treasuries plus 312.5 bps to 325 bps range following initial talk set in the Treasuries plus 325 bps area.
J.P. Morgan Securities LLC, BofA Merrill Lynch, SunTrust Robinson Humphrey Inc., TD Securities (USA) LLC and U.S. Bancorp Investments Inc. are the bookrunners.
The notes are guaranteed by H&R Block, Inc.
Proceeds will be used to fund a tender offer.
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: | $1 billion
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, SunTrust Robinson Humphrey Inc., TD Securities (USA) LLC, U.S. Bancorp Investments Inc.
|
| Trade date: | Sept. 25
|
| Ratings: | Moody’s: Baa3
|
| Standard & Poor’s: BBB
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $650 million
|
| Maturity: | Oct. 1, 2020
|
| Coupon: | 4.125%
|
| Price: | 99.674
|
| Yield: | 4.198%
|
| Spread: | Treasuries plus 275 bps
|
| Price guidance: | Treasuries plus 275 bps to 287.5 bps, tightened from Treasuries plus 287.5 bps area
|
| Make-whole call: | Treasuries plus 45 bps
|
|
|
| 10-year notes
|
| Amount: | $350 million
|
| Maturity: | Oct. 1, 2025
|
| Coupon: | 5.25%
|
| Price: | 99.7
|
| Yield: | 5.289%
|
| Spread: | Treasuries plus 312.5 bps
|
| Price guidance: | Treasuries plus 312.5 bps to 325 bps, tightened from Treasuries plus 325 bps area
|
| Make-whole call: | Treasuries plus 50 bps
|
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