Pitney Bowes tenders for $310 million of 4.875%, 5% and 4.75% notes

By Susanna Moon

Chicago, Feb. 26 - Pitney Bowes Inc. said it began cash tender offers for some of its $450 million of 4.875% medium-term notes due 2014, $400 million of 5% notes due 2015 and $500 million of 4.75% medium-term notes due 2016.

The company plans to purchase up to $160 million of the 4.875% notes, up to $100 million of the of 5% notes and up to $50 million of the 4.75% notes, according to a press release.

Pricing for the offers will be set using the yield to maturity of a reference security plus a fixed spread, as follows:

• For the 4.875% notes, the 0.25% Treasury note due Jan. 31, 2015 plus a spread of 50 basis points;

• For the 5% notes, the 0.25% Treasury note due Jan. 31, 2015 plus 150 bps; and

• For the 4.75% notes, the 0.375% Treasury note due Feb. 15, 2016 plus 200 bps.

The total purchase price includes a payment of $30 for each $1,000 principal amount of notes tendered by 5 p.m. ET on March 11, the early tender date.

The tender offers will end at 11:59 p.m. ET on March 25.

Tendered notes may be withdrawn by the early tender deadline.

Holders will receive accrued interest up to but excluding the settlement date.

Goldman Sachs & Co. (800 828-3182 or collect 212 357-6436) and J.P. Morgan Securities LLC (866 834-4666 or collect 212 834-2494) are the joint dealer managers. Global Bondholder Services Corp. (866-470-4200 or banks and brokers, 212 430-3774) is the tender and information agent.

Pitney Bowes is a Stamford, Conn.-based provider of postage equipment and services.

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