By Paul A. Harris
St. Louis, Aug. 15 - Xerox Corp. priced $650 million of senior unsecured notes (Ba2/BB+/BBB-) in an upsized, quick-to-market two-part transaction on Tuesday, according to an informed source.
The Stamford, Conn., document management company priced an upsized $500 million issue of 6¾% 10.5-year notes at a 190 basis point spread to Treasuries, at the tight end of the Treasuries plus 190 to 195 basis point price talk.
The fixed-rate tranche, which was upsized from $400 million, came at a 99.392 dollar price to yield 6.833%.
Xerox also added a $150 million tranche of floating-rate notes due in Dec. 18, 2009, which priced at par to yield three-month Libor plus 75 basis points, on top of price talk.
The overall transaction, which was priced high-grade style, was upsized from $400 million.
Goldman, Sachs & Co. and Bear, Stearns & Co. were bookrunners for the issue of notes, which are registered with the Securities and Exchange Commission. The senior co-managers were Banc of America Securities LLC, Citigroup, Deutsche Bank Securities and JP Morgan. The co-managers were Barclays Capital, BNP Paribas, Merrill Lynch & Co. and Lehman Brothers.
Proceeds will be used to support customer financing activities and for general corporate purposes.
| Issuer: | Xerox Corp.
|
| Amount: | $650 million (increased from $400 million)
|
| Security description: | Senior unsecured notes
|
| Bookrunners: | Goldman, Sachs & Co., Bear, Stearns & Co.
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB+
|
| Fitch: BBB-
|
| Trade date: | Aug. 15
|
| Settlement date: | Aug. 18
|
| Distribution: | SEC Registered
|
|
|
| Floating-rate notes
|
| Amount: | $150 million
|
| Maturity: | Dec. 18, 2009
|
| Coupon: | Three-month Libor plus 75 bps
|
| Price: | Par
|
| Yield: | Three-month Libor plus 75 bps
|
| Call protection: | Non-callable
|
| Price talk: | Libor plus 75 bps
|
|
|
| Fixed-rate notes
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| Amount: | $500 million (increased from $400 million)
|
| Maturity: | Feb. 1, 2017
|
| Coupon: | 6¾%
|
| Price: | 99.392
|
| Yield: | 6.833%
|
| Spread: | 190 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps
|
| Price talk: | Treasuries plus 190 to 195 bps
|
|
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