By Andrea Heisinger
New York, Aug. 17 - Western Union Co. sold an upsized $400 million of 3.65% seven-year senior notes on Wednesday at a spread of Treasuries plus 220 basis points, an informed source said.
The deal size was increased from $350 million. The notes were priced in line with whispered talk in the low 200 bps area and tighter than revised guidance in the 230 bps area, a source said.
The notes (A3/A-/A-) were priced at 99.908 to yield 3.665%.
The securities have a make-whole call at Treasuries plus 35 bps and feature a change-of-control put at 101%.
Bookrunners were Citigroup Global Markets Inc. and Wells Fargo Securities LLC.
Barclays Capital Inc., BNP Paribas Securities Corp., Fifth Third Securities, Mitsubishi UFJ Securities (USA) Inc., Scotia Capital (USA) Inc. and U.S. Bancorp Investments Inc. were the co-managers.
Proceeds will be used for general corporate purposes, including debt repayment.
Western Union's last debt sale was $300 million of two-year floating-rate notes priced on March 2.
The money management and payment service company is based in Englewood, Colo.
| Issuer: | Western Union Co.
|
| Issue: | Senior notes
|
| Amount: | $400 million, increased from $350 million
|
| Maturity: | Aug. 22, 2018
|
| Bookrunners: | Citigroup Global Markets Inc., Wells Fargo Securities LLC
|
| Co-managers: | Barclays Capital Inc., BNP Paribas Securities Corp., Fifth Third Securities, Mitsubishi UFJ Securities (USA) Inc., Scotia Capital (USA) Inc., U.S. Bancorp Investments Inc.
|
| Coupon: | 3.65%
|
| Price: | 99.908
|
| Yield: | 3.665%
|
| Spread: | Treasuries plus 220 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
| Change-of-control put: | 101%
|
| Trade date: | Aug. 17
|
| Settlement date: | Aug. 22
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A-
|
| Fitch: A-
|
| Price talk: | Mid-200 bps (whispered), 230 bps area (revised)
|
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