Published on 3/20/2019 in the Prospect News Investment Grade Daily.
New Issue: Marsh & McLennan sells $250 million tap of 4.375% notes due 2029 at 125 bps spread
By Cristal Cody
Tupelo, Miss., March 20 – Marsh & McLennan Cos., Inc. priced a $250 million add-on to its 4.375% senior notes due March 15, 2029 (Baa1/A-) on Wednesday at a spread of 125 basis points over Treasuries, according to a news release and an FWP filing with the Securities and Exchange Commission.
The notes priced at 104.286 to yield 3.841%.
Marsh & McLennan originally priced $1.25 billion of 4.375% 10-year notes on Jan. 8 at 99.965 to yield 4.378% and a 165 bps over Treasuries spread. The total outstanding is now $1.5 billion.
Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., BofA Merrill Lynch, MUFG and Wells Fargo Securities LLC were the bookrunners.
Proceeds, along with proceeds from the company’s $5 billion six-part senor note sale in January and its €1.1 billion of senior notes priced in two tranches on March 14, will be used in part to fund the company's acquisition of Jardine Lloyd Thompson Group plc, to repay Jardine Lloyd Thompson debt and for general corporate purposes.
The Jardine acquisition is expected to be completed in the spring. The notes have a special mandatory call at 101 if the merger is not completed on or before Dec. 31, 2019.
Marsh & McLennan is a professional services firm based in New York.
| Issuer: | Marsh & McLennan Cos., Inc.
|
| Amount: | $250 million reopening
|
| Description: | Senior notes
|
| Maturity: | March 15, 2029
|
| Bookrunners: | Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., BofA Merrill Lynch, MUFG and Wells Fargo Securities LLC
|
| Co-managers: | ANZ Securities, Inc., Barclays, BNP Paribas Securities Corp., Drexel Hamilton, LLC, GC Securities, J.P. Morgan Securities LLC, PNC Capital Markets LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC, Williams Capital Group, LP and U.S. Bancorp Investments, Inc.
|
| Coupon: | 4.375%
|
| Price: | 104.286
|
| Yield: | 3.841%
|
| Spread: | Treasuries plus 125 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps until Dec. 15, 2028; at par thereafter; special mandatory call if acquisition is not completed on or before Dec. 31, 2019 at 101
|
| Trade date: | March 20
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| Settlement date: | March 27
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| Ratings: | Moody’s: Baa1
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| S&P: A-
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| Distribution: | SEC registered
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| Price guidance: | Treasuries plus 165 bps; initial talk at Treasuries plus 180 bps-185 bps area
|
| Total outstanding: | $1.5 billion, including $1.25 billion of notes priced Jan. 8 at a Treasuries plus 165 bps spread
|
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