Chicago, Oct. 24 – American Express Co. priced a three-part offering for $2.5 billion (A2/BBB+/A) on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The senior notes broke into two tranches due Oct. 30, 2026 and one part due Oct. 30, 2031.
One of the three-year notes is a $300 million floater with interest based on SOFR plus 135 basis points. The notes priced at par.
The second part of the 2026 offering is $1.2 billion of fixed-to-floaters with a starting 6.338% coupon that converts to SOFR plus 133 bps one year before the maturity date.
Both notes due 2026 can be redeemed at par, in whole or in part, on the day one year before the maturity date or in the 31 days before the maturity date.
The third tranche with a 2031 maturity priced as $1 billion of fixed-to-floating rate notes. The notes priced at par.
The initial 6.489% coupon resets to SOFR plus 194 bps starting Oct. 20, 2030.
In terms of an optional redemption, AmEx can call the notes at par on Oct. 30, 2030 in whole or in part or in the 60-day period before the maturity date.
RBC Capital Markets, LLC, Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC were the bookrunners.
Proceeds will be used for general corporate purposes.
The credit card services company is based in New York.
| Issuer: | American Express Co.
|
| Amount: | $2.5 billion
|
| Issue: | Notes
|
| Bookrunners: | RBC Capital Markets, LLC, Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC
|
| Co-managers: | Lloyds Securities Inc., Samuel A. Ramirez & Co., Inc., SMBC Nikko Securities America, Inc. 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: | Oct. 24
|
| Settlement date: | Oct. 30
|
| Ratings: | Moody’s: A2
|
| S&P: BBB+
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Floaters
|
| Amount: | $300 million
|
| Issue: | Floating-rate notes
|
| Maturity: | Oct. 30, 2026
|
| Coupon: | SOFR plus 135 bps
|
| Price: | Par
|
| Call features: | At par on Oct. 30, 2025; at par during 31-day period before maturity
|
| Cusip: | 025816DM8
|
|
|
| 2026 notes
|
| Amount: | $1.2 billion
|
| Issue: | Fixed-to-floating rate notes
|
| Maturity: | Oct. 30, 2026
|
| Coupon: | 6.338% starting rate; resets to SOFR plus 133 bps starting Oct. 30, 2025
|
| Price: | Par
|
| Yield: | 6.338%
|
| Spread: | Treasuries plus 125 bps
|
| Call features: | At par on Oct. 30, 2025; at par during 31-day period before maturity
|
| Cusip: | 025816DL0
|
|
|
| 2031 notes
|
| Amount: | $1 billion
|
| Issue: | Fixed-to-floating-rate notes
|
| Maturity: | Oct. 30, 2031
|
| Coupon: | 6.489% starting rate; resets to SOFR plus 194 bps starting Oct. 30, 2030
|
| Price: | Par
|
| Spread: | Treasuries plus 165 bps
|
| Call features: | At par on Oct. 30, 2030; at in 60-day period before maturity date
|
| Cusip: | 025816DN6
|
|
|
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