By Cristal Cody
Chicago, July 26 – American Express Co. priced $3 billion of notes (A2/BBB+/A) over three tranches on Tuesday, according to an FWP filing with the Securities and Exchange Commission and details from a market source.
Two of the three notes are due July 28, 2027.
The company priced $300 million of floating-rate notes due on that 2027 date. The notes will have a quarterly coupon based on SOFR plus 97 basis points. The notes priced at par.
Also due in 2027, $1.2 billion of fixed-to-floating rate notes priced with a starting 5.389% coupon. The coupon will change to a SOFR plus 97 bps basis for the final year. The notes priced at par, or at 88 bps over Treasuries, versus spread talk in the 115 bps area.
Either of the two notes due in 2027 can be redeemed early on July 28, 2026, one year before they mature, or during the final 31 days before the maturity date, at par in either case.
The other half of the deal, in terms of allocations, went to $1.5 billion of fixed-to-floating rate notes due in 2029.
The 2029 notes start with a 5.282% fixed rate that converts to SOFR plus 128 bps for the final year. The notes priced at par, or at Treasuries plus 113 bps.
Price talk for the 2029 notes was in the Treasuries plus 140 bps area, the source said.
The last tranche may be redeemed early, like the other two tranches, at par one year before the maturity date or 31 days before the maturity date.
Barclays, BofA Securities, Inc., Deutsche Bank Securities Inc., Mizuho Securities USA LLC and Wells Fargo Securities, LLC were the bookrunners.
The three senior tranches were part of a four-tranche offering that also included one tranche of subordinated notes that also priced. The total order book for all four tranches was $9.55 billion, the market source said.
Proceeds will be used for general corporate purposes.
The credit card services company is based in New York.
| Issuer: | American Express Co.
|
| Amount: | $3 billion
|
| Issue: | Notes
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| Bookrunners: | Barclays, BofA Securities, Inc., Deutsche Bank Securities Inc., Mizuho Securities USA LLC and Wells Fargo Securities, LLC
|
| Co-managers: | CastleOak Securities, LP, Lloyds Securities Inc., NatWest Markets Securities Inc., Standard Chartered Bank, TD Securities (USA) LLC and U.S. Bancorp Investments, Inc.
|
| Junior co-managers: | Drexel Hamilton, LLC 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
|
| Trade date: | July 25
|
| Settlement date: | July 28
|
| Ratings: | Moody’s: A2
|
| S&P: BBB+
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Floaters
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| Amount: | $300 million
|
| Issue: | Floating-rate notes
|
| Maturity: | July 28, 2027
|
| Coupon: | SOFR plus 97 bps
|
| Price: | Par
|
| Yield: | SOFR plus 97 bps
|
| Call features: | Par on July 28, 2026; par for 31 days before maturity
|
| Price talk: | SOFR plus spread equivalent to fixed-rate tranche
|
| Cusip: | 025816DJ5
|
|
|
| 2027 fixed-to-floaters
|
| Amount: | $1.2 billion
|
| Issue: | Fixed-to-floating rate notes
|
| Maturity: | July 28, 2027
|
| Coupon: | 5.389% starting rate; changes to SOFR plus 97 bps for final year
|
| Price: | Par
|
| Yield: | 5.389%
|
| Spread: | Treasuries plus 88 bps
|
| Call features: | Par on July 28, 2026; par for 31 days before maturity
|
| Price talk: | Treasuries plus 115 bps area
|
| Cusip: | 025816DG1
|
|
|
| 2029 fixed-to-floaters
|
| Amount: | $1.5 billion
|
| Issue: | Fixed-to-floating rate notes
|
| Maturity: | July 27, 2029
|
| Coupon: | 5.282% starting rate; changes to SOFR plus 128 bps for final year
|
| Price: | Par
|
| Yield: | 5.282%
|
| Spread: | Treasuries plus 113 bps
|
| Call features: | Par on July 28, 2028; par for 31 days before maturity
|
| Price talk: | Treasuries plus 140 bps area
|
| Cusip: | 025816DH9
|
|
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