By Aleesia Forni
Virginia Beach, Jan. 7 - Union Pacific Corp. sold a three-part issue of senior notes (Baa1/A/) in tranches due 2019, 2024 and 2044 on Tuesday, according to a market source.
The new issue included $300 million of 2.25% notes due Feb. 15, 2019 sold with a spread of Treasuries plus 60 basis points, or 99.869 to yield 2.277%.
The company also priced $400 million of 3.75% notes due 2024 at 90 bps over Treasuries.
Pricing was at 99.247 to yield 3.839%.
Finally, $300 million of 4.85% notes due June 15, 2044 priced at Treasuries plus 100 bps, or 99.373 to yield 4.89%.
All three tranches were sold at the tight end of talk.
Barclays, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC were the joint bookrunners.
Proceeds from the offering will be used for general corporate purposes.
The railroad transportation company based in Omaha, Neb., was last in the market with $500 million of 4.75% 30-year bonds priced with a spread of Treasuries plus 110 basis points on Oct. 22.
| Issuer: | Union Pacific Corp.
|
| Issue: | Senior notes
|
| Amount: | $1 billion
|
| Joint bookrunners: | Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC
|
| Co-managers: | BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Bank of Tokyo Mitsubishi, SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments Inc., BNY, Mizuho Securities USA Inc., Loop Capital Markets LLC, PNC Capital Markets LLC
|
| Trade date: | Jan. 7
|
| Settlement date: | Jan. 10
|
| Change-of-control: | 101%
|
| Ratings: | Moody's:Baa1
|
| Standard & Poor's: A
|
| Distribution: | SEC-registered
|
|
|
| Notes due 2019
|
| Amount: | $300 million
|
| Maturity: | Feb. 15, 2019
|
| Coupon: | 2.25%
|
| Price: | 99.869
|
| Yield: | 2.277%
|
| Spread: | Treasuries plus 60 bps
|
| Price talk: | Treasuries plus 65 bps area, tightened from Treasuries plus 75 bps to 80 bps area
|
| Make-whole call: | Treasuries plus 10 bps
|
|
|
| Notes due 2024
|
| Amount: | $400 million
|
| Maturity: | March 15, 2024
|
| Coupon: | 3.75%
|
| Price: | 99.247
|
| Yield: | 3.839%
|
| Spread: | Treasuries plus 90 bps
|
| Price talk: | Treasuries plus 95 bps area, tightened from Treasuries plus 105 bps area
|
| Make-whole call: | Treasuries plus 15 bps
|
|
|
| Notes due 2044
|
| Amount: | $300 million
|
| Maturity: | June 15, 2044
|
| Coupon: | 4.85%
|
| Price: | 99.373
|
| Yield: | 4.89%
|
| Spread: | Treasuries plus 100 bps
|
| Price talk: | Treasuries plus 105 bps area, tightened from Treasuries plus 110 to 115 bps area
|
| Make-whole call: | Treasuries plus 15 bps
|
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