By Paul A. Harris
Portland, Ore., Aug. 4 – Xerox Holdings Corp. priced an upsized $1.1 billion of senior notes (Ba1/BB) in two bullet tranches on Tuesday, according to market sources.
The deal, which was upsized from $800 million, featured an upsized $550 million tranche of five-year notes that priced at par to yield 5%. The tranche size was increased from $400 million. The yield printed at the tight end of the 5% to 5¼% yield talk. Initial talk was in the 5¼% area.
Xerox Holdings also priced an upsized $550 million tranche of eight-year notes at par to yield 5½%. The tranche size was increased from $400 million. The yield printed at the tight end of the 5½% to 5¾% yield talk. Initial talk was in the 5¾% area.
Citigroup Global Markets Inc. was the lead bookrunner. Joint bookrunners were Mizuho Securities USA Inc., BofA Securities Inc. and MUFG.
The Norwalk, Conn.-based supplier of print and digital document products and services plans to use the proceeds to refinance its 3½% senior notes due August 2020 and 2¾% senior notes due September 2020 and for general corporate purposes.
| Issuer: | Xerox Holdings Corp.
|
| Amount: | $1.1 billion, increased from $800 million
|
| Securities: | Senior notes
|
| Lead bookrunner: | Citigroup Global Markets Inc.
|
| Joint bookrunners: | Mizuho Securities USA Inc., BofA Securities Inc. and MUFG
|
| Co-managers: | PNC Capital Markets LLC, Credit Agricole CIB and Truist Securities Inc.
|
| Call protection: | Par calls one month prior to respective maturities, otherwise non-callable
|
| Trade date: | Aug. 4
|
| Settlement date: | Aug. 6
|
| Ratings: | Moody's: Ba1
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Notes due 2025
|
| Amount: | $550 million, increased from $400 million
|
| Maturity: | Aug. 15, 2025
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| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Spread: | 481 bps
|
| Price talk: | 5% to 5¼%
|
|
|
| Notes due 2028
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| Amount: | $550 million, increased from $400 million
|
| Maturity: | Aug. 15, 2028
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| Coupon: | 5½%
|
| Price: | Par
|
| Yield: | 5½%
|
| Spread: | 514 bps
|
| Price talk: | 5½% to 5¾%
|
|
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