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American Express offers to swap issuer on 3.3% notes due 2027
Chicago, Nov. 1 – American Express Co. started an exchange offer and consent solicitation for notes issued by wholly owned subsidiary American Express Credit Corp., according to a press release.
The company is offering to exchange any and all of the $2 billion outstanding 3.3% senior notes due May 3, 2027 originally issued by American Express Credit Corp. (Cusip: 0258M0EL9) for new notes with the same maturity and coupon issued by American Express.
Noteholders who tender their existing notes by the early deadline, 5 p.m. ET on Nov. 15, will receive an even amount of new notes for the old notes, plus a $2.50 cash consideration.
For noteholders who tender their notes after the early deadline, they will only receive $970 of new notes for $1,000 of existing notes and the $2.50 cash exchange consideration.
Concurrently with the exchange offer, the issuer is soliciting consents to amend the existing notes.
The amendments would eliminate some of the covenants and events of default in the indenture, including the reporting covenant.
American Express is planning to simplify its funding and reporting structure, and American Express Credit Corp. intends to deregister with the Securities and Exchange Commission and to cease reporting as soon as it may do so. This is currently expected to occur in early 2022.
There is no covenant in the indenture to maintain a credit rating. Credit ratings may be withdrawn from the existing notes.
Tendering noteholders will be deemed to have given consent.
The deadline is 11:59 p.m. ET on Nov. 30.
New notes will be issued on or around the second business day after the expiration date.
D.F. King & Co., Inc is the information and exchange agent for the offer (888 356-7814, 212 269-5550, http://www.dfking.com/axp).
The credit card services company is based in New York.
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