By Andrea Heisinger
New York, May 15 - American Express Co. was in Wednesday's market with a $1.85 billion sale of five-year notes (A3/BBB+/A+) in two tranches, an informed source said.
An $850 million tranche of five-year floating-rate notes priced at par to yield Libor plus 59 basis points.
The second part was $1 billion of 1.55% five-year notes sold at 99.832 to yield 1.585% with a spread of Treasuries plus 75 bps.
Whispered guidance on the fixed-rate tranches was in the Treasuries plus 80 bps area, with the floaters talked at the equivalent over Libor, the source said.
Both tranches are non-callable.
Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and UBS Securities LLC were the bookrunners.
Proceeds will be used for general corporate purposes, including repayment of debt maturing in 2013.
The charge and credit card and travel services company is based in New York City.
| Issuer: | American Express Co.
|
| Issue: | Notes
|
| Amount: | $1.85 billion
|
| Bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, UBS Securities LLC
|
| Co-managers: | HSBC Securities (USA) Inc., Lloyds Securities Inc., Mitsubishi UFJ Securities (USA) Inc., Mizuho Securities USA Inc.
|
| Junior co-managers: | Samuel A. Ramirez & Co., Inc., Williams Capital Group LP
|
| Trade date: | May 15
|
| Settlement date: | May 22
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: BBB+
|
| Fitch: A+
|
|
|
| Five-year floaters
|
| Amount: | $850 million
|
| Maturity: | May 22, 2018
|
| Coupon: | Libor plus 59 bps
|
| Price: | Par
|
| Yield: | Libor plus 59 bps
|
| Call: | Non-callable
|
| Price talk: | Libor equivalent to Treasuries plus 80 bps area
|
|
|
| Five-year fixed-rate notes
|
| Amount: | $1 billion
|
| Maturity: | May 22, 2018
|
| Coupon: | 1.55%
|
| Price: | 99.832
|
| Yield: | 1.585%
|
| Spread: | Treasuries plus 75 bps
|
| Call: | Non-callable
|
| Price talk: | 80 bps area
|
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