Published on 9/7/2017 in the Prospect News Investment Grade Daily.
New Issue: Visa gives details on $2.5 billion five-, 10- and 30-year senior notes
By Devika Patel
Knoxville, Tenn., Sept. 7 – Visa Inc. offered further details about a $2.5 billion sale of senior notes (A1/A+) that priced in three tranches on the tight side of price talk on Wednesday, according to an FWP filed with the Securities and Exchange Commission.
The company priced $1 billion of 2.15% notes due Sept. 15, 2022 at a spread of Treasuries plus 53 basis points. These notes priced at 99.698 to yield 2.214%.
Visa sold $750 million of 2.75% 10-year notes with a Treasuries plus 73 bps spread. These notes priced at 99.255 to yield 2.836%.
The company priced $750 million of 3.65% 30-year notes at a spread of 95 bps over Treasuries. These notes priced at 99.583 to yield 3.673%.
Barclays, BofA Merrill Lynch, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and U.S. Bancorp Investments Inc. were the bookrunners.
Proceeds will be used for general corporate purposes, including the repayment or redemption of $1.75 billion of 1.2% notes due Dec. 14, 2017.
San Francisco-based Visa operates a retail electronic payments network.
| Issuer: | Visa Inc.
|
| Amount: | $2.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | Barclays, BofA Merrill Lynch, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., MUFG, RBC Capital Markets Corp., Standard Chartered Bank, TD Securities (USA) LLC and Wells Fargo Securities LLC
|
| Co-managers: | Loop Capital Markets LLC, Guzman & Co., Mischler Financial Group, Inc., Samuel A. Ramirez & Co. Inc., Siebert Cisneros Shank & Co., LLC and Williams Capital Group LP
|
| Trade date: | Sept. 6
|
| Settlement date: | Sept. 11
|
| Ratings: | Moody’s: A1
|
| S&P: A+
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | Sept. 15, 2022
|
| Coupon: | 2.15%
|
| Price: | 99.698
|
| Yield: | 2.214%
|
| Spread: | Treasuries plus 53 bps
|
| Call feature: | Make whole call at Treasuries plus 10 bps until Aug. 15, 2022, then a par call
|
| Price guidance: | Treasuries plus 55 bps area
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | Sept. 15, 2027
|
| Coupon: | 2.75%
|
| Price: | 99.255
|
| Yield: | 2.836%
|
| Spread: | Treasuries plus 73 bps
|
| Call feature: | Make whole call at Treasuries plus 12.5 bps until June 15, 2027, then a par call
|
| Price guidance: | Treasuries plus 75 bps area
|
|
|
| 30-year notes
|
| Amount: | $750 million
|
| Maturity: | Sept. 15, 2047
|
| Coupon: | 3.65%
|
| Price: | 99.583
|
| Yield: | 3.673%
|
| Spread: | Treasuries plus 95 bps
|
| Call feature: | Make whole call at Treasuries plus 15 bps until March 15, 2047, then a par call
|
| Price guidance: | Treasuries plus 97 bps area
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
