By Cristal Cody
Tupelo, Miss., Feb. 19 – American Express Co. priced $2 billion of senior notes (A3/BBB+/A) in two tranches on Tuesday, according to a market source and FWP filings with the Securities and Exchange Commission.
The company sold $750 million of 3% two-year notes at 99.9 to yield 3.052%, or a spread of Treasuries plus 55 basis points.
A $1.25 billion tranche of 3.4% five-year notes priced at a Treasuries plus 95 bps spread, or 99.886 to yield 3.425%.
Both tranches priced on top of guidance and better than initial talk.
Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC and Mizuho Securities USA Inc. 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: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC and Mizuho Securities USA Inc.
|
| Co-managers: | Lloyds Securities Inc., MUFG, NatWest Markets Securities Inc., TD Securities (USA) LLC and U.S. Bancorp Investments, Inc.
|
| Junior co-managers: | CastleOak Securities, LP and Drexel Hamilton, LLC
|
| Trade date: | Feb. 19
|
| Settlement date: | Feb. 22
|
| Ratings: | Moody’s: A3
|
| S&P: BBB+
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Two-year notes
|
| Amount: | $750 million
|
| Securities: | Fixed-rate notes
|
| Maturity: | Feb. 22, 2021
|
| Coupon: | 3%
|
| Price: | 99.9
|
| Yield: | 3.052%
|
| Spread: | Treasuries plus 55 bps
|
| Call feature: | At par plus interest 31 days prior to maturity
|
| Price guidance: | Treasuries plus 55 bps; initial talk at Treasuries plus 60 bps area
|
|
|
| Five-year notes
|
| Amount: | $1.25 billion
|
| Securities: | Fixed-rate notes
|
| Maturity: | Feb. 22, 2024
|
| Coupon: | 3.4%
|
| Price: | 99.886
|
| Yield: | 3.425%
|
| Spread: | Treasuries plus 95 bps
|
| Price guidance: | Treasuries plus 95 bps; initial talk at Treasuries plus 110 bps area
|
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