Pitney Bowes sets price talk in $800 million two-part notes offering; pricing Friday

By Paul A. Harris

Portland, Ore., March 11 – Pitney Bowes Inc. set price talk in its $800 million two-part offering of guaranteed senior notes (B1/BB) on Thursday, according to market sources.

The deal is coming in tranches of six-year notes talked to yield 6 5/8% to 6 7/8%, versus initial guidance in the mid-to-high 6% area, and eight-year notes talked to yield 7% to 7¼%. Initial guidance had the eight-year notes coming 37.5 basis points behind the six-year notes.

Tranche sizes remain to be determined.

Books close at 11 a.m. ET on Friday, and the deal is set to price thereafter.

Citigroup Global Markets Inc. is the lead bookrunner. J.P. Morgan Securities LLC, MUFG, Truist Securities Inc., Goldman Sachs & Co. LLC and Citizens Capital Markets Inc. are the joint bookrunners.

RBC Capital Markets LLC and Siebert Williams Shank & Co. LLC are the co-managers.

The Rule 144A and Regulation S for life notes are fully and unconditionally guaranteed by Pitney Bowes Inc. and other domestic subsidiaries.

The S&P Global Ratings BB rating of the proposed guaranteed notes comes one notch higher than that of the existing senior notes (BB-), which are not guaranteed.

The notes in both tranches become callable after three years at par plus 50% of the coupon.

The Stamford, Conn.-based technology company plans to use the proceeds to partially pay down its existing term loan B and to fund a tender offer for its 3 7/8% notes due 2022, its 4.7% notes due 2023 and its 4 5/8% notes due 2024.

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