Published on 9/12/2017 in the Prospect News High Yield Daily and Prospect News Investment Grade Daily.
New Issue: Pitney Bowes prices $700 million of split-rated notes in two tranches
By Cristal Cody
Tupelo, Miss., Sept. 12 – Pitney Bowes Inc. priced $700 million of split-rated notes (Ba1/BBB-/BBB-) in two parts on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The company sold $300 million of 3.625% three-year notes at 99.764 to yield 3.709% and a spread of Treasuries plus 225 basis points.
Pitney Bowes sold $400 million of 4.7% notes due April 1, 2023 at 99.756 to yield 4.75%, or Treasuries plus 300 bps.
Goldman Sachs & Co., BofA Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, MUFG and HSBC Securities (USA) Inc. were the bookrunners.
Proceeds will be used for the company’s planned acquisition of NGS Holdings, Inc., to repay $350 million of 4.75% notes due May 2018 and for general corporate purposes.
The mail processing equipment company is based in Stamford, Conn.
| Issuer: | Pitney Bowes Inc.
|
| Amount: | $700 million
|
| Description: | Notes
|
| Bookrunners: | Goldman Sachs & Co., BofA Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, MUFG and HSBC Securities (USA) Inc.
|
| Co-managers: | BNY Mellon Capital Markets, LLC, RBC Capital Markets, LLC, U.S. Bancorp Investments, Inc. and Williams Capital Group, LP
|
| Trade date: | Sept. 12
|
| Settlement date: | Sept. 15
|
| Ratings: | Moody’s: Ba1
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $300 million
|
| Maturity: | Sept. 15, 2020
|
| Coupon: | 3.625%
|
| Price: | 99.764
|
| Yield: | 3.709%
|
| Spread: | Treasuries plus 225 bps
|
| Call features: | Make-whole call at Treasuries plus 35 bps; mandatory redemption at 101 if merger has not closed on or before termination date
|
| Change-of-control put: | 101%
|
|
|
| 5.5-year notes
|
| Amount: | $400 million
|
| Maturity: | April 1, 2023
|
| Coupon: | 4.7%
|
| Price: | 99.756
|
| Yield: | 4.75%
|
| Spread: | Treasuries plus 300 bps
|
| Call features: | Make-whole call at Treasuries plus 45 bps; on or after March 1, 2023 at par
|
| Change-of-control put: | 101%
|
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