By Cristal Cody
Eureka Springs, Ark., Oct. 19 – The United Parcel Service, Inc. priced $1 billion of fixed-rate notes (A1/A+) in two tranches on Wednesday, according to a market source.
The company sold $500 million of 2.4% 10-year notes with a spread of Treasuries plus 65 basis points.
UPS priced $500 million of 3.4% 30-year notes at 93 bps over Treasuries.
Both tranches priced on the tight side of guidance.
BofA Merrill Lynch, Goldman Sachs & Co., Morgan Stanley & Co. LLC, UBS Investment Bank, Citigroup Global Markets Inc. and Wells Fargo Securities LLC were the bookrunners.
The company also priced €500 million of 1% senior notes due Nov. 15, 2028 on Wednesday.
Proceeds from both sales will be used to repay commercial paper and for general corporate purposes, according to a 424B5 filed with the Securities and Exchange Commission.
The package delivery and supply chain management company is based in Atlanta.
| Issuer: | United Parcel Service, Inc.
|
| Amount: | $1 billion
|
| Description: | Notes
|
| Bookrunners: | BofA Merrill Lynch, Goldman Sachs & Co., Morgan Stanley & Co. LLC, UBS Investment Bank, Citigroup Global Markets Inc., Wells Fargo Securities LLC
|
| Trade date: | Oct. 19
|
| Ratings: | Moody’s: A1
|
| S&P: A+
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Nov. 15, 2026
|
| Coupon: | 2.4%
|
| Spread: | Treasuries plus 65 bps
|
| Price guidance: | Treasuries plus 70 bps area, plus or minus 5 bps
|
|
|
| 30-year notes
|
| Amount: | $500 million
|
| Maturity: | Nov. 15, 2046
|
| Coupon: | 3.4%
|
| Spread: | Treasuries plus 93 bps
|
| Price guidance: | Treasuries plus 95 bps area, plus or minus 2 bps
|
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