Published on 2/15/2024 in the Prospect News Investment Grade Daily.
New Issue: Kyndryl Holdings sells $500 million 6.35% 10-year notes at Treasuries plus 212.5 bps
By Wendy Van Sickle
Columbus, Ohio, Feb. 15 – Kyndryl Holdings, Inc. priced $500 million of 6.35% 10-year senior notes (Baa2/BBB-/BBB) at 99.876 to yield 6.367% on Thursday, according to an FWP filing with the Securities and Exchange Commission.
The notes priced with a spread of 212.5 basis points over Treasuries.
MUFG Securities Americas Inc., Scotia Capital (USA) Inc, SMBC Nikko Securities America, Inc., BBVA Securities Inc., Deutsche Bank Securities Inc., Mizuho Securities USA LLC and TD Securities (USA) LLC are the bookrunners.
The company is expected to use the proceeds to refinance upcoming debt maturities, which include only $500 million of term loans maturing on Nov. 1, 2024.
Kyndryl is based in New York and focuses on the technology services industry. The company was formed in a spinoff from IBM in 2021.
| Issuer: | Kyndryl Holdings, Inc.
|
| Amount: | $500 million
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| Issue: | Senior notes
|
| Maturity: | Feb. 20, 2034
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| Bookrunners: | MUFG Securities Americas Inc., Scotia Capital (USA) Inc, SMBC Nikko Securities America, Inc., BBVA Securities Inc., Deutsche Bank Securities Inc., Mizuho Securities USA LLC and TD Securities (USA) LLC
|
| Co-manager: | Siebert Williams Shank & Co., LLC
|
| Trustee: | Bank of New York Mellon Trust Co., NA
|
| Counsel to issuer: | Davis Polk & Wardwell LLP
|
| Counsel to underwriters: | Cravath, Swaine & Moore LLP
|
| Coupon: | 6.35%
|
| Price: | 99.876
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| Yield: | 6.367%
|
| Spread: | Treasuries plus 212.5 bps
|
| Call: | Make-whole at Treasuries plus 35 bps until Nov. 20, 2033, then a par call
|
| Trade date: | Feb. 15
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| Settlement date: | Feb. 20
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB-
|
| Fitch: BBB
|
| Cusip: | 50155QAN0
|
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