Union Pacific sets price talk, plans to price $600 million 10- and 30-year notes Tuesday

By Andrea Heisinger

New York, March 12 - Union Pacific Corp. is preparing to sell notes (Baa1/A-/) in two maturities, sized at about $600 million, for Tuesday, according to an informed source and a filing with the Securities and Exchange Commission.

The offering includes tranches of 10-year notes and 30-year bonds. Whispered guidance on the 10-year notes is in the 90 basis points area, and the 30-year bonds are talked in the 115 bps area, the source said.

There is a change-of-control put at 101%.

Proceeds will be used for general corporate purposes, including common stock repurchases.

Union Pacific was last in the U.S. bond market with a $600 million sale of notes due 2023 and 2042 on June 6, 2012. The 2.95% long 10-year notes sold at 130 bps over Treasuries while the 4.3% 30-year bonds were priced at 158 bps over Treasuries.

The railroad transportation company is based in Omaha.

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