American Express offers fixed-rate, floating-rate, subordinated notes

By Mary-Katherine Stinson

Lexington, Ky., July 25 – American Express Co. is planning a dollar-denominated offering comprised of a series of fixed-to-floating notes and floating-rate notes and a concurrent but separate offering of dollar-denominated fixed-to-floating rate subordinated notes, according to 424B2 filings with the Securities and Exchange Commission.

After the initial fixed-rate period, the fixed-to-floaters and the subordinated notes will bear interest at compounded SOFR plus a margin. The floating-rate notes will also bear interest at compounded SOFR plus the applicable margin.

There will be a par call option for the notes on a certain date, followed by a par call beginning some months before the maturity date.

The subordinated notes will be redeemable in full at par during the period ending on a certain anniversary of their issuance, followed by a par call, either in whole or in part, beginning some months prior to maturity.

The subordinated notes will also be callable at par if there is a regulatory capital event.

None of the notes will be listed on any exchange.

Barclays, BofA Securities, Inc., Deutsche Bank Securities Inc., Mizuho Securities USA LLC and Wells Fargo Securities, LLC are working as bookrunners.

Bank of New York Mellon is the trustee.

American Express is using in-house counsel. Cleary Gottlieb Steen & Hamilton LLP is advising the underwriters.

Proceeds of both offerings will be used for general corporate purposes.

The credit card services company is based in New York.

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