New Issue: Pitney Bowes prices $400 million 3.875% five-year notes at 215 bps over Treasuries

By Cristal Cody

Tupelo, Miss., May 3 – Pitney Bowes Inc. priced a $400 million offering of 3.875% five-year notes (Baa3/BBB-) on Tuesday at 99.543 to yield 3.976%, according to an FWP filing with the Securities and Exchange Commission.

The notes (Baa3/BBB-) priced with a spread of Treasuries plus 215 basis points.

The interest rate on the securities is subject to change upon a downgrade of the company’s ratings by either Moody’s Investors Service or S&P Global Ratings.

Goldman Sachs & Co., HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC were the bookrunners.

Proceeds will be used with cash on hand to repay the company’s $150 million term loan due June 2017 and to repay the company’s $385 million of 5.75% notes due September 2017.

The mail processing equipment company is based in Stamford, Conn.

Issuer:	Pitney Bowes Inc.
Amount:	$400 million
Description:	Notes
Maturity:	May 15, 2022
Bookrunners:	Goldman Sachs & Co., HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC
Co-managers:	Citigroup Global Markets Inc., BNY Mellon Capital Markets, LLC, MUFG, RBC Capital Markets, LLC, Santander Investment Securities Inc., U.S. Bancorp Investments, Inc. and Williams Capital Group, LP
Coupon:	3.875%
Price:	99.543
Yield:	3.976%
Spread:	Treasuries plus 215 bps
Call feature:	Make-whole call at par plus Treasuries plus 35 bps; on or after April 15, 2022 at par
Change-of-control put:	101%
Trade date:	May 3
Settlement date:	May 5
Ratings:	Moody’s: Baa3
	S&P: BBB-
Distribution:	SEC registered

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