By Cristal Cody
Chicago, Oct. 8 – Kyndryl Holdings, Inc. sold a $2.4 billion offering of senior notes (Baa2/BBB-) in four parts on Thursday, according to a market participant.
The notes priced as:
• $700 million of 2.05% five-year notes with a spread of 105 basis points over Treasuries, lower than talk in the 137.5 bps area;
• $500 million of 2.7% seven-year notes for a spread of Treasuries plus 135 bps, lower than talk in the 162.5 bps area;
• $650 million of 3.15% 10-year notes with a 160 bps spread over Treasuries, low to talk in the 187.5 bps area; and
• $550 million of 4.1% 20-year notes with a spread of 205 bps over Treasuries, 20 bps low to talk in the 225 bps area.
J.P. Morgan Securities LLC, MUFG, Santander Investment Securities Inc. and TD Securities (USA) LLC were bookrunners.
The notes are part of the planned spinoff from IBM.
The separation of the company is planned by the end of 2021. The new company will be based in New York and will focus on the technology services industry.
| Issuer: | Kyndryl Holdings, Inc.
|
| Issue: | Senior notes
|
| Amount: | $2.4 billion
|
| Bookrunners: | J.P. Morgan Securities LLC, MUFG, Santander Investment Securities Inc. and TD Securities (USA) LLC
|
| Trade date: | Oct. 7
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB-
|
|
|
| 2026 notes
|
| Amount: | $700 million
|
| Maturity: | Oct. 15, 2026
|
| Coupon: | 2.05%
|
| Spread: | Treasuries plus 105 bps
|
| Price talk: | Treasuries plus 137.5 bps area
|
|
|
| 2028 notes
|
| Amount: | $500 million
|
| Maturity: | Oct. 25, 2028
|
| Coupon: | 2.7%
|
| Spread: | Treasuries plus 135 bps
|
| Price talk: | Treasuries plus 162.5 bps area
|
|
|
| 2031 notes
|
| Amount: | $650 million
|
| Maturity: | Oct. 15, 2031
|
| Coupon: | 3.15%
|
| Spread: | Treasuries plus 160 bps
|
| Price talk: | Treasuries plus 187.5 bps area
|
|
|
| 2041 notes
|
| Amount: | $550 million
|
| Maturity: | Oct. 15, 2041
|
| Coupon: | 4.1%
|
| Spread: | Treasuries plus 205 bps
|
| Price talk: | Treasuries plus 225 bps area
|
|
|
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