By Devika Patel
Knoxville, Tenn., Feb. 23 – American Express Co. offered further details about a $2 billion sale of senior notes (A3/BBB+/A) that priced in two tranches on Thursday, according to an FWP filed with the Securities and Exchange Commission.
The company priced $400 million of five-year floating-rate notes at Libor plus 65 basis points. The floaters were issued at par.
American Express sold $1.6 billion of 3.4% five-year fixed-rate notes with a spread of 77 bps over Treasuries. These notes priced at 99.909 to yield 3.42%.
The deal had a total book size of $3.3 billion.
Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. LLC were the bookrunners.
Proceeds will be used for general corporate purposes.
The credit card services company is based in New York.
| Issuer: | American Express Co.
|
| Amount: | $2 billion
|
| Description: | Fixed- and floating-rate senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. LLC
|
| Co-managers: | Lloyds Securities Inc., MUFG, SMBC Nikko Securities America, Inc., Standard Chartered Bank and TD Securities (USA) LLC
|
| Junior co-managers: | Mischler Financial Group, Inc. and Williams Capital Group LP
|
| Trade date: | Feb. 22
|
| Settlement date: | Feb. 27
|
| Ratings: | Moody’s: A3
|
| S&P: BBB+
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Five-year floaters
|
| Amount: | $400 million
|
| Securities: | Floating-rate senior notes
|
| Maturity: | Feb. 27, 2023
|
| Coupon: | Libor plus 65 bps
|
| Price: | Par
|
| Yield: | Libor plus 65 bps
|
| Call: | Callable at par plus interest 31 days prior to maturity
|
|
|
| Five-year notes
|
| Amount: | $1.6 billion
|
| Securities: | Fixed-rate senior notes
|
| Maturity: | Feb. 27, 2023
|
| Coupon: | 3.4%
|
| Price: | 99.909
|
| Yield: | 3.42%
|
| Spread: | Treasuries plus 77 bps
|
| Call: | Callable at par plus interest 31 days prior to maturity
|
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