Published on 2/24/2021 in the Prospect News Investment Grade Daily.
New Issue: Western Union prices $900 million of fixed-rate notes in two parts
By Devika Patel
Knoxville, Tenn., Feb. 24 – Western Union Co. priced $900 million of notes (Baa2/BBB) in two parts on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
Western Union sold $600 million of 1.35% five-year notes at a Treasuries plus 80 basis points spread. These notes priced at 99.884 to yield 1.374%.
A $300 million tranche of 2.75% 10-year notes was sold at a Treasuries plus 140 bps spread. These notes priced at 99.913 to yield 2.76%.
BofA Securities Inc., Barclays, Citigroup Global Markets Inc. and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used to redeem the company’s 3.6% notes due 2022, to partially repay debt under its $950 million unsecured delayed-draw term loan facility and for general corporate purposes.
Western Union is an Englewood, Colo.-based money transfer network.
| Issuer: | Western Union Co.
|
| Amount: | $900 million
|
| Securities: | Notes
|
| Bookrunners: | BofA Securities Inc., Barclays, Citigroup Global Markets Inc. and Wells Fargo Securities LLC
|
| Co-managers: | BBVA Securities Inc., BMO Capital Markets Corp., BNY Mellon Capital Markets LLC, CIBC World Markets Corp., Credit Suisse Securities (USA) LLC, Fifth Third Securities Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc., RBC Capital Markets LLC, Scotia Capital (USA) Inc., SG Americas Securities LLC, Siebert Williams Shank & Co. LLC, Truist Securities Inc. and U.S. Bancorp Investments Inc.
|
| Trade date: | Feb. 23
|
| Settlement date: | March 9
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $600 million
|
| Maturity: | March 15, 2026
|
| Coupon: | 1.35%
|
| Price: | 99.884
|
| Yield: | 1.374%
|
| Spread: | Treasuries plus 80 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps until Feb. 15, 2026, then a par call
|
|
|
| 10-year notes
|
| Amount: | $300 million
|
| Maturity: | March 15, 2031
|
| Coupon: | 2.75%
|
| Price: | 99.913
|
| Yield: | 2.76%
|
| Spread: | Treasuries plus 140 bps
|
| Call: | Make-whole call at Treasuries plus 25 bps until Dec. 15, 2030, then a par call
|
|
|
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