By Cristal Cody
Tupelo, Miss., May 12 – Aon Corp. sold $1 billion of 2.8% 10-year guaranteed senior notes (Baa2/A-/BBB+) on Tuesday at a spread of 212.5 basis points over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.
Initial price talk was in the 240 bps spread area.
The notes priced at 99.965 to yield 2.804%.
Bookrunners were Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, Barclays and J.P. Morgan Securities LLC.
The notes are guaranteed by Aon plc (Ireland), Aon plc (UK) and Aon Global Holdings plc (UK).
Aon expects to use $600 million of the proceeds to repay its outstanding 5% senior notes due Sept. 30, 2020 and for other general corporate purposes.
Aon is a London-based provider of risk management, insurance and reinsurance brokerage and also human resources solutions and outsourcing services.
Issuer: | Aon Corp.
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Guarantors: | Aon plc (Ireland), Aon plc (UK) and Aon Global Holdings plc (UK)
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Amount: | $1 billion
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Description: | Senior notes
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Maturity: | May 15, 2030
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Bookrunners: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, Barclays and J.P. Morgan Securities LLC
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Co-managers: | Aon Securities Inc., BMO Capital Markets Corp., ING Financial Markets LLC, PNC Capital Markets LLC, UniCredit Capital Markets LLC and U.S. Bancorp Investments, Inc.
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Coupon: | 2.8%
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Price: | 99.965
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Yield: | 2.804%
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Spread: | Treasuries plus 212.5 bps
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Call features: | Make-whole call at Treasuries plus 35 bps before Feb. 15, 2030; thereafter at par
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Trade date: | May 12
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Settlement date: | May 15
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Ratings: | Moody’s: Baa2
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| S&P: A-
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| Fitch: BBB+
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Distribution: | SEC registered
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Price guidance: | Treasuries plus 240 bps area
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