By Devika Patel
Knoxville, Tenn., April 21 – Campbell Soup Co. offered further details about a $1 billion issue of notes (Baa2/BBB-/BBB) that priced in two tranches on Monday, according to an FWP filed with the Securities and Exchange Commission.
The company sold $500 million of 2.375% 10-year notes at a spread of Treasuries plus 175 basis points. These notes priced at 99.991 to yield 2.376%.
Initial talk was in the Treasuries plus 210 bps area with guidance tightened to the 180 bps spread area, plus or minus 5 bps.
A $500 million tranche of 3.125% 30-year notes was sold at a spread of 190 bps over Treasuries. These notes priced at 99.729 to yield 3.139%.
The 30-year notes were talked at the 215 bps spread area and guided to print at the Treasuries plus 195 bps area, plus or minus 5 bps.
Barclays, BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BNP Paribas Securities Corp. and Credit Suisse Securities (USA) LLC were the bookrunners.
Proceeds will be used to repay debt under the company’s revolving credit facility, to repay commercial paper and for general corporate purposes.
Campbell Soup is a convenience foods company based in Camden, N.J.
Issuer: | Campbell Soup Co.
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Amount: | $1 billion
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Description: | Notes
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Bookrunners: | Barclays, BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BNP Paribas Securities Corp. and Credit Suisse Securities (USA) LLC
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Co-managers: | BMO Capital Markets Corp., MUFG, PNC Capital Markets LLC, SMBC Nikko Securities America, Inc. and Wells Fargo Securities LLC
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Trade date: | April 20
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Settlement date: | April 24
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Ratings: | Moody’s: Baa2
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| S&P: BBB-
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| Fitch: BBB
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Distribution: | SEC registered
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10-year notes
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Amount: | $500 million
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Maturity: | April 24, 2030
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Coupon: | 2.375%
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Price: | 99.991
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Yield: | 2.376%
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Spread: | Treasuries plus 175 bps
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Call: | Make-whole call at Treasuries plus 30 bps until Jan. 24, 2030, then a par call
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Price guidance: | Treasuries plus 180 bps area, plus or minus 5 bps; initial talk at Treasuries plus 210 bps area
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30-year notes
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Amount: | $500 million
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Maturity: | April 24, 2050
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Coupon: | 3.125%
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Price: | 99.729
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Yield: | 3.139%
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Spread: | Treasuries plus 190 bps
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Call: | Make-whole call at Treasuries plus 30 bps until Oct. 24, 2049, then a par call
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Price guidance: | Treasuries plus 195 bps area, plus or minus 5 bps; initial talk at Treasuries plus 215 bps area
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