By Paul A. Harris
Portland, Ore., March 12 – Pitney Bowes Inc. priced a downsized $750 million of guaranteed senior notes (B1/BB) in two tranches on Friday, according to market sources.
The deal included $400 million of six-year notes that priced at par to yield 6 7/8%, at the wide end of the 6 5/8% to 6 7/8% yield talk. Initial guidance was in the mid-to-high 6% area.
The deal also included $350 million of eight-year notes that priced at par to yield 7¼%, at the wide end of the 7% to 7¼% yield talk and on top of initial guidance, which had the eight-year notes coming 37.5 basis points behind the six-year notes.
The overall issuance decreased from $800 million with the shift of $50 million of proceeds to a bank loan.
Citigroup Global Markets Inc. was the lead bookrunner. Joint bookrunners were J.P. Morgan Securities LLC, MUFG, Truist Securities Inc., Goldman Sachs & Co. LLC and Citizens Capital Markets Inc.
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.
| Issuer: | Pitney Bowes Inc.
|
| Amount: | $750 million, decreased from $800 million
|
| Securities: | Senior notes
|
| Lead bookrunner: | Citigroup Global Markets Inc.
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| Joint bookrunners: | J.P. Morgan Securities LLC, MUFG, Truist Securities Inc., Goldman Sachs & Co. LLC and Citizens Capital Markets Inc.
|
| Co-managers: | RBC Capital Markets LLC and Siebert Williams Shank & Co. LLC
|
| Trade date: | March 12
|
| Settlement date: | March 19
|
| Ratings: | Moody's: B1
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Six-year notes
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| Amount: | $400 million
|
| Maturity: | March 15, 2027
|
| Coupon: | 6 7/8%
|
| Price: | Par
|
| Yield: | 6 7/8%
|
| Spread: | 604 bps
|
| First call: | March 15, 2024 at 103.438
|
| Price talk: | 6 5/8% to 6 7/8%
|
|
|
| Eight-year notes
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| Amount: | $350 million
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| Maturity: | March 15, 2029
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| Coupon: | 7¼%
|
| Price: | Par
|
| Yield: | 7¼%
|
| Spread: | 597 bps
|
| First call: | March 15, 2024 at 103.625
|
| Price talk: | 7% to 7¼%
|
|
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