Published on 2/12/2024 in the Prospect News Investment Grade Daily.
New Issue: American Express prices $2 billion of four-year fixed-to-floaters, floaters
By Wendy Van Sickle
Columbus, Ohio, Feb. 12 – American Express Co. priced $2 billion of floating-rate notes and fixed-to-floating rate notes (A2/BBB+/A) on Monday, according to an FWP filing with the Securities and Exchange Commission.
The senior notes broke into two tranches, both due Feb. 16, 2028.
One of the notes is a $300 million floater with interest based on SOFR plus 100 basis points. The notes priced at par.
The second part of the offering is $1.7 billion of fixed-to-floaters with a starting 5.098% coupon that converts to SOFR plus 100 bps one year before the maturity date. These notes priced at an 85 bps spread to Treasuries.
RBC Capital Markets, LLC, BofA Securities, Inc. and Mizuho Securities USA LLC were the bookrunners.
The credit card services company is based in New York.
| Issuer: | American Express Co.
|
| Amount: | $2 billion
|
| Maturity: | Feb. 16, 2028
|
| Bookrunners: | RBC Capital Markets, LLC, BofA Securities, Inc. and Mizuho Securities USA LLC
|
| Co-managers: | BNP Paribas Securities Corp., Lloyds Securities Inc., Mischler Financial Group, Inc. and SG Americas Securities, LLC
|
| Junior co-managers: | Drexel Hamilton, LLC and Siebert Williams Shank & Co., LLC
|
| Trade date: | Feb. 12
|
| Settlement date: | Feb. 16
|
| Ratings: | Moody’s: A2
|
| S&P: BBB+
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Floaters
|
| Amount: | $300 million
|
| Issue: | Floating-rate notes
|
| Coupon: | SOFR plus 100 bps
|
| Price: | Par
|
| Yield: | SOFR plus 100 bps
|
| Call features: | At par on Feb. 16, 2027; at par during 31-day period before maturity
|
| Cusip: | 025816DQ9
|
|
|
| Fixed-to-floaters
|
| Amount: | $1.7 billion
|
| Issue: | Fixed-to-floating rate notes
|
| Coupon: | 5.098% starting rate; resets to SOFR plus 100 bps starting Feb. 16, 2027
|
| Price: | Par
|
| Yield: | 5.098%
|
| Spread: | Treasuries plus 85 bps
|
| Call features: | At par on Feb. 16, 2027; at par during 31-day period before maturity
|
| Cusip: | 025816DP1
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
