By Andrea Heisinger
New York, Dec. 5 - Western Union Co. tapped the market on Wednesday with an upsized $750 million sale of notes (A3/A-/A-) in two tranches, an informed source said.
The size was increased from $500 million, the source said.
A $250 million tranche of 2.375% three-year notes priced at 99.816 to yield 2.439% with a spread of Treasuries plus 212.5 basis points. The notes sold at the tight end of guidance in the 215 bps area, plus or minus 2.5 bps.
There is a make-whole call at Treasuries plus 35 bps.
There was also a $500 million tranche of 2.875% five-year notes sold at 99.506 to yield 2.982% with a spread of 237.5 bps over Treasuries. The notes sold at the low end of talk in the 240 bps area, plus or minus 2.5 bps.
The tranche has a make-whole call at Treasuries plus 40 bps.
The notes feature a change-of-control put at 101%.
Bookrunners were J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC.
Proceeds will be used for general corporate purposes, including stock repurchases and debt repayment.
Western Union was last in the market with a $400 million sale of seven-year notes on Aug. 17, 2011.
The money movement and payment services company is based in Englewood, Colo.
| Issuer: | Western Union Co.
|
| Issue: | Notes
|
| Amount: | $750 million, upsized from $500 million
|
| Bookrunners: | J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC
|
| Co-managers: | BNP Paribas Securities Corp., CIBC World Markets Corp., Fifth Third Securities, Inc., HSBC Securities (USA) Inc., UBS Securities LLC, U.S. Bancorp Investments, Inc.
|
| Change-of-control put: | 101%
|
| Trade date: | Dec. 5
|
| Settlement date: | Dec. 10
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A-
|
| Fitch: A-
|
|
|
| Three-year notes
|
| Amount: | $250 million
|
| Maturity: | Dec. 10, 2015
|
| Coupon: | 2.375%
|
| Price: | 99.816
|
| Yield: | 2.439%
|
| Spread: | Treasuries plus 212.5 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
| Price talk: | 215 bps area, plus or minus 2.5 bps
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | Dec. 10, 2017
|
| Coupon: | 2.875%
|
| Price: | 99.506
|
| Yield: | 2.982%
|
| Spread: | Treasuries plus 237.5 bps
|
| Call: | Make-whole at Treasuries plus 40 bps
|
| Price talk: | 240 bps area, plus or minus 2.5 bps
|
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