By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, April 26 – Cintas Corp. subsidiary Cintas Corp. No. 2 priced $1.2 billion of senior notes (A3/A-) in two parts on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The issuer sold $400 million of 3.45% notes due May 1, 2025 at a spread of 75 basis points over Treasuries, tighter than spread talk in the 95 bps area. The notes priced at 99.978 to yield 3.458%.
Cintas also sold $800 million of 4% 10-year notes at a spread of 125 bps over Treasuries, tighter than spread talk in the 145 bps area. The notes priced at 99.943 to yield 4.007%.
KeyBanc Capital Markets Inc., MUFG and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used to redeem all $300 million of the company’s 3.25% notes due June 1, 2022 on May 2, to repay borrowings under its revolver and for general corporate purposes.
The notes will be guaranteed by parent company Cintas Corp., a Cincinnati-based provider of uniforms and other workplace products, as well as Cintas Corp. No. 3 and Cintas Corporate Services, Inc.
| Issuer: | Cintas Corp. No. 2
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| Guarantors: | Cintas Corp., Cintas Corp. No. 3 and Cintas Corporate Services, Inc.
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| Amount: | $1.2 billion
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| Description: | Senior notes
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| Bookrunners: | KeyBanc Capital Markets Inc., MUFG and Wells Fargo Securities LLC
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| Co-managers: | U.S. Bancorp Investments, Inc., Fifth Third Securities, Inc. and PNC Capital Markets LLC
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| Trustee: | U.S. Bank Trust Co., NA
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| Counsel to issuer: | Jones Day
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| Counsel to underwriters: | Sidley Austin LLP
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| Trade date: | April 26
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| Settlement date: | May 3
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| Ratings: | Moody’s: A3
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| S&P: A-
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| Distribution: | SEC registered
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|
| Three-year notes
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| Amount: | $400 million
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| Maturity: | May 1, 2025
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| Coupon: | 3.45%
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| Price: | 99.978
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| Yield: | 3.458%
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| Spread: | Treasuries plus 75 bps
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| Call: | Make-whole at Treasuries plus 15 bps until April 1, 2025, then a par call
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| Price talk: | Treasuries plus 95 bps area
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| Cusip: | 17252MAP5
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| 10-year notes
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| Amount: | $800 million
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| Maturity: | May 1, 2032
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| Coupon: | 4%
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| Price: | 99.943
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| Yield: | 4.007%
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| Spread: | Treasuries plus 125 bps
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| Call: | Make-whole at Treasuries plus 20 bps until Feb. 1, 2032, then a par call
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| Price talk: | Treasuries plus 145 bps area
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| Cusip: | 17252MAQ3
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