By Andrea Heisinger
New York, Dec. 8 - The banking arm of American Express Co. priced $5.25 billion of notes backed by the Federal Deposit Insurance Corp. Temporary Liquidity Guarantee Program in three tranches Monday, market sources said.
The notes (Aaa/AAA/AAA) are guaranteed until their maturity.
The $500 million of two-year floating-rate notes priced at par to yield one-month Libor plus 85 basis points.
The $1.25 billion of three-year floaters priced at par to yield one-month Libor plus 98 bps.
The $3.5 billion of 3.15% three-year notes priced at 99.921 to yield 3.178%, or Treasuries plus 195 bps.
Bookrunners were Citigroup Global Markets Inc., Banc of America Securities LLC and J.P. Morgan Securities Inc.
The credit card and financial services company is based in New York City.
| Issuer: | American Express Co., banking branch
|
| Guarantor: | Federal Deposit Insurance Corp.
|
| Issue: | FDIC-backed notes
|
| Total amount: | $5.25 billion
|
| Bookrunners: | Citigroup Global Markets Inc., Banc of America Securities LLC, J.P. Morgan Securities Inc.
|
| Trade date: | Dec. 8
|
| Settlement date: | Dec. 11
|
| Ratings: | Moody's: Aaa
|
| Standard & Poor's: AAA
|
| Fitch: AAA
|
|
|
| Two-year notes
|
| Amount: | $500 million
|
| Issue: | Floating-rate notes
|
| Maturity: | December 2010
|
| Coupon: | One-month Libor plus 85 bps
|
| Price: | Par
|
| Yield: | One-month Libor plus 85 bps
|
| Call: | Non-callable
|
|
|
| Three-year floaters
|
| Amount: | $1.25 billion
|
| Issue: | Floating-rate notes
|
| Maturity: | December 2011
|
| Coupon: | One-month Libor plus 98 bps
|
| Price: | Par
|
| Yield: | One-month Libor plus 98 bps
|
| Call: | Non-callable
|
|
|
| Three-year fixed-rate notes
|
| Amount: | $3.5 billion
|
| Issue: | Fixed-rate notes
|
| Maturity: | December 2011
|
| Coupon: | 3.15%
|
| Price: | 99.921
|
| Yield: | 3.178%
|
| Spread: | Treasuries plus 195 bps
|
| Call: | Non-callable
|
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