By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., April 23 – American Express Co. priced $3 billion of fixed-to-floating rate and floating-rate notes (A2/BBB+/A) in three tranches at par, along with a concurrent offering of $500 million of fixed-to-floating rate subordinated notes, according to a market source and an FWP filed with the Securities and Exchange Commission.
A $1.3 billion tranche of 5.645% fixed-to-floating rate notes due 2027 priced at a spread of Treasuries plus 68 basis points after price talk in the Treasuries plus 90 bps area. The coupon rate will reset to compounded SOFR plus 75 bps one year before maturity.
The $300 million of floating-rate notes due 2027 priced with an initial coupon of compounded SOFR plus 75 bps. Price talk was SOFR plus equivalent. The interest rate will reset quarterly.
Additionally, the $1.4 billion tranche of 5.532% fixed-to-floating rate notes due 2030 priced with a spread of 88 bps over Treasuries after price talk in the Treasuries plus 115 bps area. The coupon rate will reset to compounded SOFR plus 109 bps one year before maturity.
The fixed-to-floating rate tranches feature make-whole calls beginning six months after issue at Treasuries plus 12.5 bps for the 2027 notes and Treasuries plus 15 bps for the 2030 notes. The tranches will be callable in whole at par on the date that is one year before their respective maturity dates, and in whole or in part during the 31-day period prior to maturity, also at par.
The 2027 floaters feature an optional par call in whole on April 23, 2026 or in whole or in part during the 31-day period prior to maturity.
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.
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| Amount: | $3 billion
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| Issue: | Notes
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| 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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| Trade date: | April 22
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| Settlement date: | April 25
|
| Ratings: | Moody’s: A2
|
| S&P: BBB+
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| Fitch: A
|
|
|
| 2027 notes
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| Amount: | $1.3 billion
|
| Issue: | Fixed-to-floating rate notes
|
| Maturity: | April 23, 2027
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| Coupon: | 5.645% initially; resets to compounded SOFR plus 75 bps on April 23, 2026
|
| Price: | Par
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| Yield: | 5.645%
|
| Spread: | Treasuries plus 68 bps
|
| Call features: | Make-whole call at Treasuries plus 12.5 bps beginning Oct. 25, 2024; in whole on April 23, 2026 or in whole or in part during the 31-day period prior to maturity at par
|
| Price talk: | Treasuries plus 90 bps area
|
| Cusip: | 025816DT3
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|
|
| 2027 floaters
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| Amount: | $300 million
|
| Issue: | Floating-rate notes
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| Maturity: | April 23, 2027
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| Coupon: | Compounded SOFR plus 75 bps; reset quarterly
|
| Price: | Par
|
| Yield: | Compounded SOFR plus 75 bps
|
| Call features: | At par on April 23, 2026; at par during the 31-day period prior to maturity
|
| Price talk: | SOFR plus equivalent
|
| Cusip: | 025816DS5
|
|
|
| 2030 notes
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| Amount: | $1.4 billion
|
| Issue: | Fixed-to-floating rate notes
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| Maturity: | April 25, 2030
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| Coupon: | 5.532% initially; resets on April 25, 2029 to SOFR plus 109 bps
|
| Price: | Par
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| Yield: | 5.532%
|
| Spread: | Treasuries plus 88 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps beginning Oct. 25, 2024; in whole on April 25, 2029 or in whole or in part during the 31-day period prior to maturity at par
|
| Price talk: | Treasuries plus 115 bps area
|
| Cusip: | 025816DU0
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