By Aleesia Forni
New York, Dec. 9 – Visa Inc. priced $16 billion of senior notes (A1/A+) in six parts on Wednesday, according to an informed source.
There was a $1.75 billion tranche of 1.2% two-year notes sold at 99.947 to yield 1.227%, or Treasuries plus 30 basis points.
Guidance was in the Treasuries plus 33 bps area after having tightened from the Treasuries plus 50 bps area.
A $3 billion 2.2% tranche of five-year notes sold with a spread of 57 bps over Treasuries. Pricing was at 99.915 to yield 2.218%.
The notes came at the tight side of guidance set in the Treasuries plus 60 bps area. Initial talk was in the Treasuries plus 80 bps area.
The company also sold $2.25 billion of 2.8% seven-year notes at 99.861 to yield 2.822% with a spread of Treasuries plus 82 bps.
Pricing was at the tight end of the Treasuries plus 85 bps area guidance, tightened from talk in the Treasuries plus 105 bps area.
A $4 billion 3.15% tranche of 10-year notes sold at 99.634 to yield 3.193%, or Treasuries plus 97 bps.
Price guidance was set in the Treasuries plus 100 bps area. Initial talk was in the Treasuries plus 120 bps area.
And a $1.5 billion tranche of 4.15% 20-year bonds sold at Treasuries plus 117 bps. The notes sold at 99.865 to yield 4.16%.
The notes priced at the tight end of the Treasuries plus 120 bps area initial talk and inside talk set in the Treasuries plus 140 bps area.
Finally, $3.5 billion of 4.3% 30-year bonds sold at 99.833 to yield 4.31% with a spread of Treasuries plus 132 bps.
Guidance was in the Treasuries plus 135 bps area and tight of talk in the Treasuries plus 155 bps area.
BofA Merrill Lynch, Goldman Sachs & Co., J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC were the active bookrunners. Passive bookrunners were Barclays, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., MUFG, RBC Capital Markets LLC and Standard Chartered Bank.
Proceeds will be used to fund a portion of the purchase price for the acquisition of Visa Europe Ltd. and the remainder for general corporate purposes.
San Francisco’s Visa operates a retail electronic payments network.
| Issuer: | Visa Inc.
|
| Issue: | Senior notes
|
| Amount: | $16 billion
|
| Bookrunners: | BofA Merrill Lynch, Goldman Sachs & Co., J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC, Barclays, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., MUFG, RBC Capital Markets LLC, Standard Chartered Bank
|
| Trade date: | Dec. 9
|
| Settlement date: | Dec. 14
|
| Change-of-control put: | 101%
|
| Ratings: | Moody’s: A1
|
| Standard & Poor’s: A+
|
| Distribution: | SEC registered
|
|
|
| Two-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | Dec. 14, 2017
|
| Coupon: | 1.2%
|
| Price: | 99.947
|
| Yield: | 1.227%
|
| Spread: | Treasuries plus 30 bps
|
| Price guidance: | Treasuries plus 33 bps area, tightened from Treasuries plus 50 bps area
|
|
|
| Five-year notes
|
| Amount: | $3 billion
|
| Maturity: | Dec. 14, 2020
|
| Coupon: | 2.2%
|
| Price: | 99.915
|
| Yield: | 2.218%
|
| Spread: | Treasuries plus 57 bps
|
| Price guidance: | Treasuries plus 60 bps area, tightened from Treasuries plus 80 bps area
|
|
|
| Seven-year notes
|
| Amount: | $2.25 billion
|
| Maturity: | Dec. 14, 2022
|
| Coupon: | 2.8%
|
| Price: | 99.861
|
| Yield: | 2.822%
|
| Spread: | Treasuries plus 82 bps
|
| Price guidance: | Treasuries plus 85 bps area, tightened from Treasuries plus 105 bps area
|
|
|
| 10-year notes
|
| Amount: | $4 billion
|
| Maturity: | Dec. 14, 2025
|
| Coupon: | 3.15%
|
| Price: | 99.634
|
| Yield: | 3.193%
|
| Spread: | Treasuries plus 97 bps
|
| Price guidance: | Treasuries plus 100 bps area, tightened from Treasuries plus 120 bps area
|
|
|
| 20-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | Dec. 14, 2035
|
| Coupon: | 4.15%
|
| Price: | 99.865
|
| Yield: | 4.16%
|
| Spread: | Treasuries plus 117 bps
|
| Price guidance: | Treasuries plus 120 bps area, tightened from Treasuries plus 140 bps area
|
|
|
| 30-year notes
|
| Amount: | $3.5 billion
|
| Maturity: | Dec. 14, 2045
|
| Coupon: | 4.3%
|
| Price: | 99.833
|
| Yield: | 4.31%
|
| Spread: | Treasuries plus 132 bps
|
| Price guidance: | Treasuries plus 135 bps area, tightened from Treasuries plus 155 bps area
|
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