By Cristal Cody
Chicago, March 22 – Nestle Capital Corp. sold $2.5 billion of notes in four parts (Aa3/AA-), according to a market source.
The deal included $600 million of 4.65% notes with a five-year tenor. The Treasuries plus 55 basis points spread came 20 bps lower than talk in the 75 bps area.
The smallest tranche, $450 million of seven-year notes, priced with a 4.75% coupon at Treasuries plus 65 bps. Talk was in the 85 bps area.
The largest tranche, $800 million of 10-year notes, priced with a 4.875% coupon at Treasuries plus 75 bps. Price talk was again 20 bps higher, in the 95 bps area.
The deal also included a $650 million 30-year note. The 5.1% coupon meant that pricing came 85 bps to Treasuries, 20 bps low to talk in the 105 bps area.
BofA Securities, Inc., Barclays, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC were the bookrunners.
The notes are guaranteed by parent Nestle SA.
Nestle is a Vevey, Switzerland-based food and beverage company.
| Issuer: | Nestle Capital Corp.
|
| Guarantor: | Nestle SA
|
| Amount: | $2.5 billion
|
| Issue: | Notes
|
| Bookrunners: | BofA Securities, Inc., Barclays, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC
|
| Counsel to underwriters: | Davis Polk
|
| Trade date: | March 5
|
| Ratings: | Moody’s: Aa3
|
| S&P: AA-
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Five-year notes
|
| Amount: | $600 million
|
| Maturity: | March 12, 2029
|
| Coupon: | 4.65%
|
| Spread: | Treasuries plus 55 bps
|
| Price talk: | Treasuries plus 75 bps area
|
|
|
| Seven-year notes
|
| Amount: | $450 million
|
| Maturity: | March 12, 2031
|
| Coupon: | 4.75%
|
| Spread: | Treasuries plus 65 bps
|
| Price talk: | Treasuries plus 85 bps area
|
|
|
| 10-year notes
|
| Amount: | $800 million
|
| Maturity: | March 12, 2034
|
| Coupon: | 4.875%
|
| Spread: | Treasuries plus 75 bps
|
| Price talk: | Treasuries plus 95 bps area
|
| 30-year notes
|
| Amount: | $650 million
|
| Maturity: | March 12, 2054
|
| Coupon: | 5.1%
|
| Spread: | Treasuries plus 85 bps
|
| Price talk: | Treasuries plus 105 bps area
|
|
|
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