Published on 4/28/2017 in the Prospect News Investment Grade Daily.
New Issue: American Express prices $4 billion of fixed- and floating-rate notes
By Devika Patel
Knoxville, Tenn., April 28 – American Express Credit Corp. priced a $4 billion sale of notes (A2/A-/A) in three tranches on Thursday, according to an FWP filed with the Securities and Exchange Commission.
American Express priced $2 billion of 3.3% 10-year fixed-rate notes at Treasuries plus 115 basis points. These notes priced at 98.774 to yield 3.446%.
The company priced $1.5 billion of 1.875% two-year fixed-rate notes at a spread of Treasuries plus 65 bps. These notes priced at 99.959 to yield 1.896%.
American Express priced $500 million of two-year floating-rate notes at Libor plus 33 basis points. These notes were sold at par.
Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., RBC Capital Markets Corp., Wells Fargo Securities LLC and UBS Securities LLC were the bookrunners.
American Express Credit is a New York City-based credit card services provider.
| Issuer: | American Express Credit Corp.
|
| Amount: | $4 billion
|
| Description: | Notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., RBC Capital Markets Corp., Wells Fargo Securities LLC, UBS Securities LLC
|
| Co-managers: | Lloyds Securities Inc., MUFG, RBS Securities Inc., SMBC Nikko Securities America, Inc., Standard Chartered Bank
|
| Junior co-managers: | CastleOak Securities LP, Drexel Hamilton, LLC, Mischler Financial Group, Inc., Samuel A. Ramirez & Co. Inc.
|
| Trade date: | April 27
|
| Settlement date: | May 3
|
| Ratings: | Moody’s: A2
|
| S&P: A-
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $2 billion
|
| Maturity: | May 3, 2027
|
| Coupon: | 3.3%
|
| Price: | 98.774
|
| Yield: | 3.446%
|
| Spread: | Treasuries plus 115 bps
|
| Call: | Par call on or after 31 days before maturity with 30 to 60 days’ notice
|
|
|
| Two-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | May 3, 2019
|
| Coupon: | 1.875%
|
| Price: | 99.959
|
| Yield: | 1.896%
|
| Spread: | Treasuries plus 65 bps
|
| Call: | Par call on or after 31 days before maturity with 30 to 60 days’ notice
|
|
|
| Two-year floaters
|
| Amount: | $500 million
|
| Maturity: | May 3, 2019
|
| Coupon: | Libor plus 33 bps
|
| Price: | Par
|
| Yield: | Libor plus 33 bps
|
| Call: | Par call on or after 31 days before maturity with 30 to 60 days’ notice
|
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