Published on 9/24/2012 in the Prospect News Investment Grade Daily.
New Issue: UPS prices $1.75 billion notes in five-, 10-, 30-year tranches
By Andrea Heisinger
New York, Sept. 24 - United Parcel Service, Inc. was in the market with a $1.75 billion offering of senior notes (Aa3/A+/) in three tranches on Monday, a market source said.
The $375 million of 1.125% five-year notes sold at 99.835 to yield 1.159% with a spread of 50 basis points over Treasuries. There is a make-whole call at 10 bps over Treasuries.
A second part was $1 billion of 2.45% 10-year bonds priced at 99.867 to yield 2.465% with a spread of 75 bps over Treasuries. The notes carry a make-whole call at 15 bps over Treasuries.
There was also a $375 million tranche of 3.625% 30-year bonds priced at 98.754 to yield 3.694% with a spread of 80 bps over Treasuries. The bonds have a make-whole call option at Treasuries plus 15 bps.
Active bookrunners were Bank of America Merrill Lynch, Morgan Stanley & Co. LLC and UBS Securities LLC. Passive bookrunners were Goldman Sachs & Co., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC.
Proceeds will be used to repay $1.75 billion of 4.5% senior notes maturing on Jan. 15, 2013 and for general corporate purposes.
UPS was last in the bond market with a $2 billion issue of notes due 2021 and 2040 on Nov. 8, 2010.
The 3.125% 10-year notes from that trade were sold at 65 bps over Treasuries while the 4.875% 30-year bonds priced at 85 bps over Treasuries.
The package delivery and supply chain management company is based in Atlanta.
| Issuer: | United Parcel Service, Inc.
|
| Issue: | Senior notes
|
| Amount: | $1.75 billion
|
| Bookrunners: | Bank of America Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC (active), Goldman Sachs & Co., Citigroup Global Markets Inc., J.P. Morgan Securities LLC (passive)
|
| Senior co-managers: | BNP Paribas Securities Corp., Barclays
|
| Co-managers: | Mitsubishi UFJ Securities (USA), Inc., BNY Mellon Capital Markets LLC, Commerz Markets LLC, Fifth Third Securities, Inc., HSBC Securities (USA) Inc., Mizuho Securities USA Inc., RBS Securities Inc., Standard Chartered Bank, Wells Fargo Securities LLC, CastleOak Securities LP, Samuel A. Ramirez & Co., Inc., Williams Capital Group LP
|
| Trade date: | Sept. 24
|
| Settlement date: | Sept. 27
|
| Ratings: | Moody's: Aa3
|
| Standard & Poor's: A+
|
|
|
| Five-year notes
|
| Amount: | $375 million
|
| Maturity: | Oct. 1, 2017
|
| Coupon: | 1.125%
|
| Price: | 99.835
|
| Yield: | 1.159%
|
| Spread: | Treasuries plus 50 bps
|
| Call: | Make-whole at Treasuries plus 10 bps
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | Oct. 1, 2022
|
| Coupon: | 2.45%
|
| Price: | 99.867
|
| Yield: | 2.465%
|
| Spread: | Treasuries plus 75 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
|
|
| 30-year bonds
|
| Amount: | $375 million
|
| Maturity: | Oct. 1, 2042
|
| Coupon: | 3.625%
|
| Price: | 98.754
|
| Yield: | 3.694%
|
| Spread: | Treasuries plus 80 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
|
|
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