Published on 5/18/2020 in the Prospect News Investment Grade Daily.
New Issue: Intercontinental Exchange prices $2.5 billion of senior notes due 2030, 2050
By Cristal Cody
Tupelo, Miss., May 18 – Intercontinental Exchange Inc. sold $2.5 billion of senior notes (A2/A) in two tranches on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company priced $1.25 billion of 2.1% 10-year notes at 99.29 to yield 2.179%, or a spread of Treasuries plus 145 basis points.
Initial price talk was in the Treasuries plus 165 bps area with guidance tightened to the 150 bps area, plus or minus 5 bps.
A $1.25 billion tranche of 3% 30-year notes priced at 98.496 to yield 3.077%. The notes came on the tight side of guidance at a spread of 165 bps over Treasuries.
The notes were initially talked at the 190 bps spread area with guidance firmed to the 170 bps area, plus or minus 5 bps.
BofA Securities, Inc., J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, MUFG, Loop Capital Markets LLC and Credit Suisse Securities (USA) LLC were the bookrunners.
Proceeds will be used to fund the redemption of the company’s $1.25 billion 2.75% senior notes due 2020 and to pay down a portion of its outstanding commercial paper.
Atlanta-based Intercontinental Exchange is a network of regulated exchanges and clearing houses for commodity, fixed-income and equity markets.
| Issuer: | Intercontinental Exchange Inc.
|
| Amount: | $2.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, MUFG, Loop Capital Markets LLC and Credit Suisse Securities (USA) LLC
|
| Senior co-managers: | BBVA Securities Inc., BMO Capital Markets Corp., Fifth Third Securities, Inc., ICBC Standard Bank plc, Mizuho Securities USA LLC and PNC Capital Markets LLC
|
| Co-managers: | Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, SG Americas Securities, LLC and Goldman Sachs & Co. LLC
|
| Trade date: | May 18
|
| Settlement date: | May 26
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | June 15, 2030
|
| Coupon: | 2.1%
|
| Price: | 99.29
|
| Yield: | 2.179%
|
| Spread: | Treasuries plus 145 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps before March 15, 2030; thereafter at par
|
| Price guidance: | Treasuries plus 150 bps area, plus or minus 5 bps; initial price talk in the Treasuries plus 165 bps area
|
|
|
| 30-year notes
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| Amount: | $1.25 billion
|
| Maturity: | June 15, 2050
|
| Coupon: | 3%
|
| Price: | 98.496
|
| Yield: | 3.077%
|
| Spread: | Treasuries plus 165 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps before Dec. 15, 2049; thereafter at par
|
| Price guidance: | Treasuries plus 170 bps area, plus or minus 5 bps; initial price talk in the Treasuries plus 190 bps area
|
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