By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., April 23 – American Express Co. priced a tranche of subordinated notes (A3/BBB/A-), along with a concurrent offering of $3 billion of fixed-to-floating rate and floating-rate notes, according to a market source and an FWP filed with the Securities and Exchange Commission.
The $500 million of 5.915% fixed-to-floating rate subordinated notes due 2035 priced at par, or at Treasuries plus 130 basis points. Price talk came in at Treasuries plus 165 bps area.
The initial coupon rate will reset on April 25, 2034 to compounded SOFR plus 163 bps.
The notes are callable at a make whole premium of Treasuries plus 20 bps beginning on April 27, 2029, five years and two business days after issue, and before Jan. 25, 2034.
There is an optional par call in whole on April 25, 2034, the 10th anniversary of the date of issuance, and in whole or in part during the three-month period prior to maturity. The notes will also be callable in full at par within 90 days following a regulatory capital event.
The company will use the net proceeds for general corporate purposes.
The credit card services company is based in New York.
| Issuer: | American Express Co.
|
| Amount: | $500 million
|
| Issue: | Fixed-to-floating rate subordinated notes
|
| Maturity: | April 25, 2035
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc. and Wells Fargo Securities LLC
|
| Co-managers: | R. Seelaus & Co., LLC, BNP Paribas Securities Corp., Lloyds Securities Inc., NatWest Markets Securities Inc., SMBC Nikko Securities America, Inc. and TD Securities (USA) LLC
|
| Junior co-managers: | Drexel Hamilton, LLC and Siebert Williams Shank & Co., LLC
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| Coupon: | 5.915% initially; resets on April 25, 2034 to SOFR plus 163 bps
|
| Price: | Par
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| Yield: | 5.915%
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| Spread: | Treasuries plus 130 bps
|
| Call features: | At Treasuries plus 20 bps beginning April 27, 2029 and before Jan. 25, 2034; in whole at par on April 25, 2034; in whole and in part at par during the three-month period prior to maturity
|
| Trade date: | April 22
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| Settlement date: | April 25
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| Ratings: | Moody’s: A3
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| S&P: BBB
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| Fitch: A-
|
| Price talk: | Treasuries plus 165 bps area
|
| Cusip: | 025816DR7
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