Published on 8/13/2019 in the Prospect News Investment Grade Daily.
New Issue: United Parcel Service prices $1.5 billion of notes in three parts
By Cristal Cody
Tupelo, Miss., Aug. 13 – United Parcel Service, Inc. priced $1.5 billion of senior notes (A2/A) in three tranches on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
The company sold $400 million of 2.2% five-year notes at 99.914 to yield 2.218%, or a spread of 65 basis points over Treasuries.
UPS priced $400 million of 2.5% 10-year notes at 99.691 to yield 2.535%. The bonds priced with a Treasuries plus 85 bps spread.
A $700 million tranche of 3.4% 30-year notes priced at 99.235 to yield 3.441%. The bonds priced with a Treasuries plus 130 bps spread.
Barclays, Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, BofA Securities, Inc., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were the bookrunners.
Proceeds will be used to make early contributions to the company’s primary domestic pension plans, to repay commercial paper and for general corporate purposes.
The package delivery and supply chain management company is based in Atlanta.
| Issuer: | United Parcel Service, Inc.
|
| Amount: | $1.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | Barclays, Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, BofA Securities, Inc., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC
|
| Co-managers: | BNP Paribas Securities Corp., BNY Mellon Capital Markets, LLC, CastleOak Securities, LP, Fifth Third Securities, Inc., HSBC Securities (USA) Inc., Lloyds Securities Inc., Mizuho Securities USA LLC, MUFG, SG Americas Securities, LLC, Standard Chartered Bank, Williams Capital Group, LP, UBS Securities LLC and U.S. Bancorp Investments, Inc.
|
| Trade date: | Aug. 13
|
| Settlement date: | Aug. 16
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $400 million
|
| Maturity: | Sept. 1, 2024
|
| Coupon: | 2.2%
|
| Price: | 99.914
|
| Yield: | 2.218%
|
| Spread: | Treasuries plus 65 bps
|
| Call features: | Make-whole-call before Aug. 1, 2024 at greater of par and Treasuries plus 10 bps; thereafter at par
|
|
|
| 10-year notes
|
| Amount: | $400 million
|
| Maturity: | Sept. 1, 2029
|
| Coupon: | 2.5%
|
| Price: | 99.691
|
| Yield: | 2.535%
|
| Spread: | Treasuries plus 85 bps
|
| Call features: | Make-whole-call before June 1, 2029 at greater of par and Treasuries plus 15 bps; thereafter at par
|
|
|
| 30-year notes
|
| Amount: | $700 million
|
| Maturity: | Sept. 1, 2049
|
| Coupon: | 3.4%
|
| Price: | 99.235
|
| Yield: | 3.441%
|
| Spread: | Treasuries plus 130 bps
|
| Call features: | Make-whole-call before March 1, 2049 at greater of par and Treasuries plus 20 bps; thereafter at par
|
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