By Cristal Cody
Tupelo, Miss., March 19 – United Parcel Service, Inc. priced $3.5 billion of registered senior notes (A2/A) in four tranches on Thursday, according to a market source.
The company sold $1 billion of 3.9% five-year notes at a spread of 325 basis points over Treasuries.
The five-year notes were talked to price at the Treasuries plus 350 bps area.
UPS priced $750 million of 4.45% 10-year notes with a Treasuries plus 335 bps spread.
The 10-year issue was initially talked to price in the 360 bps spread area.
A $500 million tranche of 5.2% 20-year notes priced at a 335 bps over Treasuries spread compared to talk in the 360 bps spread area.
UPS sold $1.25 billion of 5.3% 30-year notes at a Treasuries plus 345 bps spread.
The bonds were talked to price in the Treasuries plus 370 bps area.
BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used to repay the company’s $424 million of 8.375% debentures due 2020 and €500 million of floating-rate senior notes due 2020, to repay commercial paper and for general corporate purposes.
The package delivery and supply chain management company is based in Atlanta.
| Issuer: | United Parcel Service, Inc.
|
| Amount: | $3.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC
|
| Trade date: | March 19
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | April 1, 2025
|
| Coupon: | 3.9%
|
| Spread: | Treasuries plus 325 bps
|
| Price guidance: | Treasuries plus 350 bps area
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | April 1, 2030
|
| Coupon: | 4.45%
|
| Spread: | Treasuries plus 335 bps
|
| Price guidance: | Treasuries plus 360 bps area
|
|
|
| 20-year notes
|
| Amount: | $500 million
|
| Maturity: | April 1, 2040
|
| Coupon: | 5.2%
|
| Spread: | Treasuries plus 335 bps
|
| Price guidance: | Treasuries plus 360 bps area
|
|
|
| 30-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | April 1, 2050
|
| Coupon: | 5.3%
|
| Spread: | Treasuries plus 345 bps
|
| Price guidance: | Treasuries plus 370 bps area
|
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