American Express gives final results of exchange offer for 3.3% notes

By Wendy Van Sickle

Columbus, Ohio, Dec. 1 – American Express Co. announced the final results of its Nov. 1 exchange offer for notes issued by wholly owned subsidiary American Express Credit Corp., according to a press release.

As of the expiry of the offer and related consent solicitation at 11:59 p.m. ET on Nov. 30, the company had received exchange instructions for $1,660,622,000 of the $2 billion outstanding 3.3% senior notes due May 3, 2027 (Cusip: 0258M0EL9), or 83.03% of the issue. The company was offering to exchange the notes for new notes with the same coupon and maturity to be issued by American Express.

The figure was up from at the early deadline, 5 p.m. ET on Nov. 15, at which time the company had received exchange instructions for $1,591,964,000, or 79.6%, of the notes.

On the early date, American Express also announced that the previous deadline for holders to tender their notes and be eligible to receive the new senior notes to be issued by American Express in the same principal amount plus a cash amount of $2.50 per $1,000 principal amount of notes was being pushed out to the expiry of the offer.

Noteholders who tendered their existing notes will receive an even amount of new notes for the old notes, plus a $2.50 cash consideration.

Initially noteholders who tendered their notes after the early deadline were to receive $970 of new notes for $1,000 of existing notes and the $2.50 cash exchange consideration.

The company received the consents needed to amend the existing notes to eliminate some of the covenants and events of default in the indenture, including the reporting covenant.

As previously reported, 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.

There is no covenant in the indenture to maintain a credit rating. Credit ratings may be withdrawn from the existing notes.

Settlement is expected on Dec. 2.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.