Scotts Miracle-Gro driving by with $400 million 10.5-year notes; initial talk low-to-mid 4% area

By Paul A. Harris

Portland, Ore., Aug. 10 – Scotts Miracle-Gro Co. plans to price a $400 million offering of senior notes due 2032 (existing ratings Ba3/B+) in a Tuesday drive-by trailing a conference call with investors, according to market sources.

Initial guidance has the Rule 144A and Regulation S with registration rights deal coming to yield in the low-to-mid 4% area, a trader said.

Wells Fargo Securities LLC is the left bookrunner. J.P. Morgan Securities LLC and Mizuho Securities USA Inc. are the joint bookrunners.

BofA Securities Inc., Fifth Third Securities Inc., Rabo Securities USA Inc., SMBC Nikko Securities America Inc., TD Securities (USA) LLC, Citizens Capital Markets Inc., Scotia Capital (USA) Inc., U.S. Bancorp Investments Inc., Truist Securities Inc., PNC Capital Markets LLC and HSBC Securities (USA) Inc. are the co-managers.

The 10.5-year notes become callable after five years at par plus 50% of the coupon.

The Marysville, Ohio-based lawn and garden products manufacturer plans to use the proceeds to pay down its revolver, with any remaining proceeds to be used for general corporate purposes.

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