Published on 3/31/2020 in the Prospect News Investment Grade Daily.
New Issue: Visa prices $4 billion of notes due 2027, 2030 and 2040
By Cristal Cody
Tupelo, Miss., March 31 – Visa Inc. sold $4 billion of senior notes (Aa3/AA-) in three tranches on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
A $1.5 billion tranche of 1.9% seven-year notes priced at 99.718 to yield 1.943% and a spread of Treasuries plus 140 basis points.
Visa sold $1.5 billion of 2.05% 10-year notes with a Treasuries plus 140 bps spread. The notes priced at 99.855 to yield 2.066%.
A $1 billion tranche of 2.7% 30-year notes priced at 99.264 to yield 2.748%, or a spread of 140 bps over Treasuries.
The seven- and 10-year notes were initially talked at the Treasuries plus 190 bps area, and the 20-year notes were talked at the 185 bps spread area.
Guidance was tightened to the Treasuries plus 145 bps area, plus or minus 5 bps, for all three tranches.
BofA Securities Inc., J.P. Morgan Securities LLC, RBC Capital Markets LLC, Wells Fargo Securities LLC, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., MUFG, Standard Chartered Bank, SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC and U.S. Bancorp Investments, Inc. were the bookrunners.
Proceeds will be used for general corporate purposes.
San Francisco-based Visa operates a retail electronic payments network.
| Issuer: | Visa Inc.
|
| Amount: | $4 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities Inc., J.P. Morgan Securities LLC, RBC Capital Markets LLC, Wells Fargo Securities LLC, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., MUFG, Standard Chartered Bank, SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC and U.S. Bancorp Investments, Inc.
|
| Co-managers: | Loop Capital Markets LLC, Guzman & Co., Mischler Financial Group, Inc., Samuel A. Ramirez & Co., Inc. and Siebert Williams Shank & Co., LLC
|
| Trade date: | March 31
|
| Settlement date: | April 2
|
| Ratings: | Moody’s: Aa3
|
| S&P: AA-
|
| Distribution: | SEC registered
|
|
|
| Seven-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | April 15, 2027
|
| Coupon: | 1.9%
|
| Price: | 99.718
|
| Yield: | 1.943%
|
| Spread: | Treasuries plus 140 bps
|
| Call features: | Make-whole call at price equal to greater of par and Treasuries plus 25 bps before Feb. 15, 2027; thereafter at par
|
| Price guidance: | Treasuries plus 145 bps area, plus or minus 5 bps; initial talk at Treasuries plus 190 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | April 15, 2030
|
| Coupon: | 2.05%
|
| Price: | 99.855
|
| Yield: | 2.066%
|
| Spread: | Treasuries plus 140 bps
|
| Call features: | Make-whole call at price equal to greater of par and Treasuries plus 25 bps before Jan. 15, 2030; thereafter at par
|
| Price guidance: | Treasuries plus 145 bps area, plus or minus 5 bps; initial talk at Treasuries plus 190 bps area
|
|
|
| 20-year notes
|
| Amount: | $1 billion
|
| Maturity: | April 15, 2040
|
| Coupon: | 2.7%
|
| Price: | 99.264
|
| Yield: | 2.748%
|
| Spread: | Treasuries plus 140 bps
|
| Call features: | Make-whole call at price equal to greater of par and Treasuries plus 25 bps before Oct. 15, 2039; thereafter at par
|
| Price guidance: | Treasuries plus 145 bps area, plus or minus 5 bps; initial talk at Treasuries plus 185 bps area
|
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