By Andrea Heisinger
Omaha, May 1 - The Chubb Corp. priced $1.2 billion senior notes (A2/A/A+) in two tranches on Thursday, an informed source said.
The $600 million tranche of 5.75% 10-year notes priced at 99.106 to yield 5.869%, or Treasuries plus 210 basis points.
The $600 million tranche of 6.5% 30-year notes priced at 98.814 to yield 6.591%, or Treasuries plus 210 bps.
Both tranches priced at the tight end of price talk, which was 210 bps to 215 bps more than Treasuries.
Bookrunners were Citigroup Global Markets Inc., Goldman Sachs & Co. and Merrill Lynch, Pierce, Fenner & Smith Inc.
Proceeds will be used to refinance certain debt maturing later in 2008, with the balance for general corporate purposes.
The holding company for a property and casualty insurance company is based in Warren, N.J.
| Issuer: | The Chubb Corp.
|
| Issue: | Senior notes
|
| Amount: | $1.2 billion
|
| Bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co., Merrill Lynch, Pierce, Fenner & Smith Inc.
|
| Trade date: | May 1
|
| Settlement date: | May 6
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
| Fitch: A+
|
|
|
| 10-year tranche
|
| Amount: | $600 million
|
| Maturity: | May 15, 2018
|
| Coupon: | 5.75%
|
| Price: | 99.106
|
| Yield: | 5.869%
|
| Spread: | Treasuries plus 210 bps
|
| Price talk: | 210 to 215 bps
|
|
|
| 30-year tranche
|
| Amount: | $600 million
|
| Maturity: | May 15, 2038
|
| Coupon: | 6.5%
|
| Price: | 98.814
|
| Yield: | 6.591%
|
| Spread: | Treasuries plus 210 bps
|
| Price talk: | 210 to 215 bps
|
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