By Cristal Cody
Tupelo, Miss., May 15 – American Express Co. priced $3 billion of senior notes (A3/BBB+/A) in three tranches on Wednesday, according to FWP filings with the Securities and Exchange Commission.
The company sold $900 million of floating-rate notes due May 20, 2022 at par to yield Libor plus 62 basis points.
A $1.25 billion tranche of 2.75% three-year notes priced at 99.88 to yield 2.792%, or a Treasuries plus 67 bps spread.
American Express sold $850 million of 3.125% seven-year notes at 99.732 to yield 3.168%. The notes priced with a spread of 92 bps over Treasuries.
Barclays, BofA Securities, Inc., HSBC Securities (USA) Inc. and Wells Fargo Securities 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: | $3 billion
|
| Description: | Senior notes
|
| Bookrunners: | Barclays, BofA Securities, Inc., HSBC Securities (USA) Inc. and Wells Fargo Securities LLC
|
| Co-managers: | Lloyds Securities Inc., MUFG, SMBC Nikko Securities America, Inc., Standard Chartered Bank and TD Securities (USA) LLC
|
| Junior co-managers: | Westpac Capital Markets LLC and Williams Capital Group, LP
|
| Trade date: | May 15
|
| Settlement date: | May 20
|
| Ratings: | Moody’s: A3
|
| S&P: BBB+
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Three-year floaters
|
| Amount: | $900 million
|
| Securities: | Floating-rate notes
|
| Maturity: | May 20, 2022
|
| Coupon: | Libor plus 62 bps
|
| Price: | Par
|
| Yield: | Libor plus 62 bps
|
| Call feature: | At par plus interest 31 days prior to maturity
|
|
|
| Three-year notes
|
| Amount: | $1.25 billion
|
| Securities: | Fixed-rate notes
|
| Maturity: | May 20, 2022
|
| Coupon: | 2.75%
|
| Price: | 99.88
|
| Yield: | 2.792%
|
| Spread: | Treasuries plus 67 bps
|
| Call feature: | At par plus interest 31 days prior to maturity
|
|
|
| Seven-year notes
|
| Amount: | $850 million
|
| Securities: | Fixed-rate notes
|
| Maturity: | May 20, 2026
|
| Coupon: | 3.125%
|
| Price: | 99.732
|
| Yield: | 3.168%
|
| Spread: | Treasuries plus 92 bps
|
| Call feature: | At par plus interest 31 days prior to maturity
|
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