By Wendy Van Sickle
Columbus, Ohio, May 18 – American Express Co. sold $750 million of 4.989% fixed-to-floating rate subordinated notes due 2033 (A3/BBB/A-) at par and a spread of Treasuries plus 210 basis points on Wednesday, according to an FWP filed with the Securities and Exchange Commission.
Interest is fixed for the first 10 years, then will float at compounded SOFR plus 225.5 bps.
The notes are callable three months prior to their 10th anniversary and then three months prior to their maturity.
Deutsche Bank Securities Inc. and RBC Capital Markets, LLC are the joint bookrunners.
Proceeds will be used for general corporate purposes.
The credit card services company is based in New York.
| Issuer: | American Express Co.
|
| Amount: | $750 million
|
| Issue: | Fixed-to-floating rate subordinated notes
|
| Maturity: | May 26, 2033
|
| Bookrunners: | Deutsche Bank Securities Inc. and RBC Capital Markets, LLC
|
| Co-managers: | Lloyds Securities Inc., TD Securities (USA) LLC and U.S. Bancorp Investments, Inc.
|
| Junior co-managers: | CastleOak Securities, LP and Siebert Williams Shank & Co., LLC
|
| Trustee: | Bank of New York Mellon
|
| Counsel to issuer: | In-house
|
| Counsel to underwriters: | Cleary Gottlieb Steen & Hamilton LLP
|
| Coupon: | 4.989% until May 26, 2032, then compounded SOFR plus 225.5 bps
|
| Price: | Par
|
| Yield: | 4.989%
|
| Spread: | Treasuries plus 210 bps
|
| Call option: | At par three months prior to 10th anniversary and then three months prior to maturity
|
| Trade date: | May 18
|
| Settlement date: | May 26
|
| Ratings: | Moody’s: A3
|
| S&P: BBB
|
| Fitch: A-
|
| Distribution: | SEC registered
|
| Cusip: | 025816CX5
|
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