By Cristal Cody
Tupelo, Miss., Sept. 21 – 3M Co. priced a $2 billion three-tranche offering of series F senior medium-term notes (A1/AA-) on Thursday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company priced $650 million of 2.25% notes due March 15, 2023 at 99.934 to yield 2.263% and a spread of 37 basis points over Treasuries.
3M sold $850 million of 2.875% 10-year notes at 99.386 to yield 2.946%, or a spread of 67 bps over Treasuries.
The $500 million tranche of 3.625% 30-year bonds priced at 99.058 to yield 3.677% and a spread of 87 bps over Treasuries.
The three tranches priced more than 10 bps better than initial price thoughts and on the tight side of guidance.
The 2.875% notes were initially talked in the 55 bps to 60 bps over Treasuries area and later tightened to the 40 bps area.
Initial price thoughts on the 10-year notes were in the Treasuries plus 80 bps to 85 bps area and firmed to the 70 bps area in later guidance.
The 30-year notes were initially talked in the Treasuries plus 100 bps to 105 bps spread area and later guided in the 90 bps area.
J.P. Morgan Securities LLC, BofA Merrill Lynch, Wells Fargo Securities LLC, Barclays and Morgan Stanley & Co. LLC were the bookrunners.
A portion of the proceeds will be used to fund the company’s tender offer for up to $400 million of its 6.375% debentures due 2028 and 5.7% notes due 2037. The remaining proceeds will be used for the company’s acquisition of Scott Safety and for general corporate purposes.
3M is a Maplewood, Minn.-based global company that produces products including Post-it notes and Scotch office tape.
| Issuer: | 3M Co.
|
| Amount: | $2 billion
|
| Description: | Senior medium-term notes
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, Wells Fargo Securities LLC, Barclays and Morgan Stanley & Co. LLC
|
| Co-managers: | Academy Securities, Inc., C.L. King & Associates, Inc., Samuel A. Ramirez & Co., Inc. and Williams Capital Group, LP
|
| Trade date: | Sept. 21
|
| Settlement date: | Oct. 2
|
| Ratings: | Moody’s: A1
|
| S&P: AA-
|
| Distribution: | SEC registered
|
|
|
| 5.5-year notes
|
| Amount: | $650 million
|
| Maturity: | March 15, 2023
|
| Coupon: | 2.25%
|
| Price: | 99.934
|
| Yield: | 2.263%
|
| Spread: | Treasuries plus 37 bps
|
| Call features: | Make-whole call at greater of par and Treasuries plus 10 bps; on or after Feb. 15, 2023 at par
|
| Price guidance: | Treasuries plus 40 bps area
|
|
|
| 10-year notes
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| Amount: | $850 million
|
| Maturity: | Oct. 15, 2027
|
| Coupon: | 2.875%
|
| Price: | 99.386
|
| Yield: | 2.946%
|
| Spread: | Treasuries plus 67 bps
|
| Call features: | Make-whole call at greater of par and Treasuries plus 12.5 bps; on or after July 15, 2027 at par
|
| Price guidance: | Treasuries plus 70 bps area
|
|
|
| 30-year notes
|
| Amount: | $500 million
|
| Maturity: | Oct. 15, 2047
|
| Coupon: | 3.625%
|
| Price: | 99.058
|
| Yield: | 3.677%
|
| Spread: | Treasuries plus 87 bps
|
| Call features: | Make-whole call at greater of par and Treasuries plus 15 bps; on or after April 15, 2047 at par
|
| Price guidance: | Treasuries plus 90 bps area
|
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