By Devika Patel
Knoxville, Tenn., Nov. 2 – American Express Co. offered further details about a $3 billion sale of senior notes (A3/BBB+/A) that priced in three tranches on Thursday, according to an FWP filed with the Securities and Exchange Commission.
The company placed $1 billion of three-year floating-rate notes at Libor plus 60 basis points. These notes priced at par.
American Express sold $1.25 billion of 3.7% three-year fixed-rate notes at a Treasuries plus 80 bps spread. These notes priced at 99.978 to yield 3.708%.
A $750 million tranche of 4.2% seven-year fixed-rate notes priced with a 118 bps spread over Treasuries. These notes priced at 99.778 to yield 4.237%.
Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., RBC Capital Markets LLC, Wells Fargo Securities LLC and Barclays 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: | $3 billion
|
| Description: | Senior notes
|
| Call: | Callable at par after 31 days prior to maturity
|
| Bookrunners: | Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., RBC Capital Markets LLC, Wells Fargo Securities LLC and Barclays
|
| Co-managers: | Lloyds Securities Inc., MUFG, NatWest Markets Securities Inc., Standard Chartered Bank and TD Securities (USA) LLC
|
| Junior co-managers: | Samuel A. Ramirez & Co. Inc. and RedTail Capital Markets, LLC
|
| Trade date: | Nov. 1
|
| Settlement date: | Nov. 6
|
| Ratings: | Moody’s: A3
|
| S&P: BBB+
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Three-year floaters
|
| Amount: | $1 billion
|
| Securities: | Floating-rate notes
|
| Maturity: | Nov. 5, 2021
|
| Coupon: | Libor plus 60 bps
|
| Price: | Par
|
|
|
| Three-year notes
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| Amount: | $1.25 billion
|
| Securities: | Fixed-rate notes
|
| Maturity: | Nov. 5, 2021
|
| Coupon: | 3.7%
|
| Price: | 99.978
|
| Yield: | 3.708%
|
| Spread: | Treasuries plus 80 bps
|
|
|
| Seven-year notes
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| Amount: | $750 million
|
| Securities: | Fixed-rate notes
|
| Maturity: | Nov. 6, 2025
|
| Coupon: | 4.2%
|
| Price: | 99.778
|
| Yield: | 4.237%
|
| Spread: | Treasuries plus 118 bps
|
|
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|
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