By Andrea Heisinger
New York, May 13 - American Express Co. sold $3 billion notes (A3/BBB+/A+) in two tranches late Wednesday without the guarantee of the Federal Deposit Insurance Corp., an informed source said.
The $1.25 billion of 7.25% five-year notes priced at 99.842 to yield 7.288% with a spread of Treasuries plus 530 basis points.
The $1.75 billion of 8.125% 10-year notes priced at 99.675 to yield 8.173% with a spread of 505 bps over Treasuries.
The notes are non-callable.
Bookrunners were Banc of America Securities, Citigroup Global Markets, Goldman Sachs & Co., J.P. Morgan Securities and UBS Investment Bank.
Proceeds will be used for general corporate purposes, including partial funding of the intended repurchase of $3.4 billion of preferred stock sold to the U.S. Department of the Treasury on Jan. 9.
The global payment, travel and bank holding company is based in New York City.
| Issuer: | American Express Co.
|
| Issue: | Notes, not backed by FDIC
|
| Amount: | $3 billion
|
| Bookrunners: | Banc of America Securities, Citigroup Global Markets, Goldman Sachs & Co., J.P. Morgan Securities, UBS Investment Bank
|
| Trade date: | May 13
|
| Settlement date: | May 20
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: BBB+
|
| Fitch: A+
|
|
|
| Five-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | May 20, 2014
|
| Coupon: | 7.25%
|
| Price: | 99.842
|
| Yield: | 7.288%
|
| Spread: | Treasuries plus 530 bps
|
| Call: | Non-callable
|
|
|
| Ten-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | May 20, 2019
|
| Coupon: | 8.125%
|
| Price: | 99.675
|
| Yield: | 8.173%
|
| Spread: | Treasuries plus 505 bps
|
| Call: | Non-callable
|
© 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.
