By Stephanie N. Rotondo
Phoenix, Feb. 26 - Pitney Bowes Inc. sold $375 million of 6.7% $25-par notes due March 7, 2043 (Baa2/BBB/) at par on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
BofA Merrill Lynch, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are the joint bookrunners.
Interest will be payable in March, June, September and December. The notes can be redeemed after March 7, 2018 at par plus accrued interest.
Additionally, there is a make-whole call prior to March 7, 2018 at 55 bps over Treasuries.
And, in the event of a change of control, the company will be required to offer holders cash for their notes, equal to 101% of par, plus accrued interest.
The issue will be listed on the New York Stock Exchange.
Proceeds will be used to purchase a portion of the company's 4.875% notes due 2014, 5% notes due 2015 and 4.75% notes due 2016 and to pay related costs and expenses. Any remaining funds will be used for general corporate purposes.
Pitney Bowes is a Stamford, Conn.-based provider of postage equipment and services.
| Issuer: | Pitney Bowes Inc.
|
| Securities: | Notes
|
| Amount: | $375 million
|
| Greenshoe: | $50 million
|
| Maturity: | March 7, 2043
|
| Bookrunners: | BofA Merrill Lynch, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC
|
| Co-managers: | RBC Capital Markets LLC, HSBC Securities (USA) Inc., RBS Securities Inc.
|
| Coupon: | 6.7%
|
| Price: | Par of $25
|
| Yield: | 6.7%
|
| Talk: | Around 6.75%
|
| Call options: | On or after March 7, 2043 at par plus accrued interest; in the event of a change of control at 101% of par plus accrued interest
|
| Make-whole call: | Prior to March 7, 2018 at 55 bps over Treasuries
|
| Pricing date: | Feb. 26
|
| Settlement date: | March 7
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Cusip: | 724479506
|
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