Published on 3/13/2008 in the Prospect News Investment Grade Daily.
New Issue: American Express prices $3 billion of notes in 10-, 30-year tranches
By Andrea Heisinger
Omaha, March 13 - American Express Co. priced $3 billion of senior notes Wednesday in two tranches, an informed source said.
The company priced $2 billion of 7% 10-year notes at 99.617 to yield 7.054%, or Treasuries plus 362.5 basis points.
The company also priced $1 billion of 8.15% 30-year notes at 99.633 to yield 8.183%, or Treasuries plus 380 bps.
All of the notes are non-callable.
Bookrunners were Citigroup Global Markets Inc., J.P. Morgan Securities Inc. and Merrill Lynch, Pierce, Fenner & Smith Inc, with joint lead manager Greenwich Capital Markets, Inc.
Co-managers were Barclays Capital, Inc., Banc of America Securities LLC, BNP Paribas, Credit Suisse Securities LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., Mitsubishi UFJ Securities International plc, Mizuho Securities USA Inc., National Australia Bank Ltd., BNY Capital Markets Inc., CastleOak Securities, LP and the Williams Capital Group, LP.
The global payments and travel company is based in New York City.
| Issuer: | American Express Co.
|
| Issue: | Senior notes
|
| Amount: | $3 billion
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Inc.
|
| Joint lead manager: | Greenwich Capital Markets, Inc.
|
| Co-managers: | Barclays Capital, Inc., Banc of America Securities LLC, BNP Paribas, Credit Suisse Securities LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., Mitsubishi UFJ Securities International plc, Mizuho Securities USA Inc., National Australia Bank Ltd., BNY Capital Markets Inc., CastleOak Securities, LP and the Williams Capital Group, LP
|
| Trade date: | March 12
|
| Settlement date: | March 19
|
| Ratings: | Moody's: A1
|
| Standard & Poor's: A+
|
| Fitch: A+
|
|
|
| 10-year tranche
|
| Amount: | $2 billion
|
| Maturity: | March 19, 2018
|
| Coupon: | 7%
|
| Price: | 99.617
|
| Yield: | 7.054%
|
| Spread: | Treasuries plus 362.5 bps
|
| Call: | Non-callable
|
|
|
| 30-year tranche
|
| Amount: | $1 billion
|
| Maturity: | March 19, 2038
|
| Coupon: | 8.15%
|
| Price: | 99.633
|
| Yield: | 8.183%
|
| Spread: | Treasuries plus 380 bps
|
| Call: | Non-callable
|
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