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Kroger launches $1.2B notes offering

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Kroger launches $1.2B notes offering

The Kroger Co. on Jan. 7 announced the issuance of US$1.2 billion of senior unsecured notes in two tranches.

The first tranche comprises $600 million of senior notes with a 10-year duration and a coupon of 4.5% per annum, maturing in January 2029.

The second tranche, which will mature in January 2049, is for $600 million with a coupon of 5.4% per annum.

In both tranches, interest is payable semiannually.

S&P Global Ratings assigned a BBB issue-level rating, while Moody's Investors Service provided a Baa1 rating to the food retailer's new senior unsecured notes.

Wells Fargo Securities LLC, Citigroup Global Markets Inc., U.S. Bancorp Investments Inc., BB&T Capital Markets, BNY Mellon Capital Markets LLC and MUFG Securities Americas Inc. will serve as joint book-running managers for the notes maturing in January 2029. Fifth Third Securities Inc., Goldman Sachs & Co. LLC, Merrill Lynch Pierce Fenner & Smith Inc., Mizuho Securities USA LLC, PNC Capital Markets LLC, RBC Capital Markets LLC, Santander Investment Securities Inc. and Drexel Hamilton LLC will be co-managers.

For senior notes maturing in January 2049, Wells Fargo Securities LLC, Goldman Sachs & Co. LLC, Merrill Lynch Pierce Fenner & Smith Inc., Fifth Third Securities Inc., RBC Capital Markets LLC and Santander Investment Securities Inc. will serve as joint book-running managers, while BB&T Capital Markets, BNY Mellon Capital Markets LLC, Citigroup Global Markets Inc., Mizuho Securities USA LLC, MUFG Securities Americas Inc., PNC Capital Markets LLC, U.S. Bancorp Investments Inc. and The Williams Capital Group LP will be co-managers.