Published on 7/25/2022 in the Prospect News Investment Grade Daily.
New Issue: American Express sells $3.5 billion of notes in two tranches
By Wendy Van Sickle
Columbus, Ohio, July 25 – American Express Co. sold $3.5 billion of notes in two parts (A2/BBB+/A) on Monday, according to an FWP filed with the Securities and Exchange Commission.
The offering included
• $2.25 billion of 3.95% three-year notes, which priced at 99.9 to yield 3.986% and a spread over Treasuries of 100 basis points; and
• $1.25 billion of 4.42% 11-year fixed-to-floating rate notes, which priced at par to yield 4.42% for a spread over Treasuries of 160 bps. The coupon will be fixed until Aug. 3, 2032, and then will convert to a floating rate of SOFR plus 176 bps.
Credit Suisse Securities (USA) LLC, Barclays, HSBC Securities (USA) 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: | $3.5 billion
|
| Issue: | Notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Barclays, HSBC Securities (USA) Inc. and RBC Capital Markets, LLC
|
| Co-managers: | CastleOak Securities, LP, Lloyds Securities Inc., MUFG and TD Securities (USA) LLC
|
| Junior co-managers: | Drexel Hamilton, LLC and Mischler Financial Group, Inc.
|
| Trustee: | Bank of New York Mellon
|
| Counsel to issuer: | In-house
|
| Counsel to underwriters: | Cleary Gottlieb Steen & Hamilton LLP
|
| Trade date: | July 25
|
| Settlement date: | Aug. 3
|
| Ratings: | Moody’s: A2
|
| S&P: BBB+
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $2.25 billion
|
| Maturity: | Aug. 1, 2025
|
| Coupon: | 3.95%
|
| Price: | 99.9
|
| Yield: | 3.986%
|
| Spread: | Treasuries plus 100 bps
|
| Call: | At par 31 days before maturity date
|
| Cusip: | 025816CY3
|
|
|
| 2033 fixed-to-floaters
|
| Amount: | $1.25 billion
|
| Maturity: | Aug. 3, 2033
|
| Coupon: | 4.42% until Aug. 3, 2032, then SOFR plus 176 bps
|
| Price: | Par
|
| Yield: | 4.42%
|
| Spread: | Treasuries plus 160 bps
|
| Call: | At whole on Aug. 3, 2032 or in whole or in part during the three months prior to the maturity date
|
| Cusip: | 025816DA4
|
|
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