By Andrea Heisinger
New York, July 10 - Penske Truck Leasing Co. LP and PTL Finance Corp. priced $1.1 billion of senior notes (Baa3/BBB-/) in two tranches on Tuesday, a market source close to the deal said.
The $300 million of 2.5% two-year notes were priced at 99.961 to yield 2.52% with a spread of Treasuries plus 225 basis points. The tranche was priced tighter than talk in the mid-200 bps area.
There is a make-whole call at 35 bps over Treasuries.
An $800 million tranche of 4.875% 10-year notes sold at 99.376 to yield 4.955% with a spread of 345 bps over Treasuries. The paper priced tighter than guidance in the mid-300 bps area.
The notes carry a make-whole call at 50 bps over Treasuries.
The deal was done under Rule 144A and Regulation S.
Bookrunners were Bank of America Merrill Lynch, J.P. Morgan Securities LLC, RBS Securities Inc. and Wells Fargo Securities LLC.
Proceeds will be used to repay debt under a bank revolving credit facility and a portion of debt owed to General Electric Capital Corp. under the GE Capital credit facility.
The global transportation services provider is based in Reading, Pa.
| Issuer: | Penske Truck Leasing Co. LP, PTL Finance Corp.
|
| Issue: | Senior notes
|
| Amount: | $1.1 billion
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities LLC, RBS Securities Inc., Wells Fargo Securities LLC
|
| Distribution: | Rule 144A, Regulation S
|
| Trade date: | July 10
|
| Settlement date: | July 13
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
|
|
| Two-year notes
|
| Amount: | $300 million
|
| Maturity: | July 11, 2014
|
| Coupon: | 2.5%
|
| Price: | 99.961
|
| Yield: | 2.52%
|
| Spread: | Treasuries plus 225 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
| Price talk: | Mid-200 bps area
|
|
|
| 10-year notes
|
| Amount: | $800 million
|
| Maturity: | July 11, 2022
|
| Coupon: | 4.875%
|
| Price: | 99.376
|
| Yield: | 4.955%
|
| Spread: | Treasuries plus 345 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Price talk: | Mid-300 bps area
|
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