By Andrea Heisinger
New York, Jan. 14 - Penske Truck Leasing Co. LP and PTL Finance Corp. sold $1 billion of senior notes (Baa3/BBB-/BBB+) in Monday's market under Rule 144A and Regulation S without registration rights, an informed source said.
A $500 million tranche of 2.875% notes due 2018 priced at 99.783 to yield 2.918% with a spread of Treasuries plus 215 basis points. Pricing was at the tight end of talk in the 220 bps area, plus or minus 5 bps.
The tranche has a make-whole call at Treasuries plus 35 bps.
A $500 million tranche of 4.25% 10-year notes was sold at 99.14 to yield 4.357% and a spread of Treasuries plus 250 bps. The tranche also sold at the low end of guidance in the 255 bps area, plus or minus 5 bps.
There is a make-whole call at Treasuries plus 40 bps.
There is a change-of-control put at 101%.
Bookrunners were Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities LLC.
Proceeds will be used to repay outstanding borrowings under a bank revolving credit facility and to repay U.S. dollar-denominated debt under a General Electric Capital Corp. 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 billion
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Distribution: | Rule 144A, Regulation S without registration rights
|
| Trade date: | Jan. 14
|
| Settlement date: | Jan. 17
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Fitch: BBB+
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | July 17, 2018
|
| Coupon: | 2.875%
|
| Price: | 99.783
|
| Yield: | 2.918%
|
| Spread: | Treasuries plus 215 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
| Price talk: | 220 bps area, plus or minus 5 bps
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Jan. 17, 2023
|
| Coupon: | 4.25%
|
| Price: | 99.14
|
| Spread: | Treasuries plus 250 bps
|
| Call: | Make-whole at Treasuries plus 40 bps
|
| Price talk: | 255 bps area, plus or minus 5 bps
|
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