By Aleesia Forni
Virginia Beach, Aug. 11 – Burlington Northern Santa Fe LLC was in the market with a $1.5 billion issue of senior debentures (A3/BBB+/) in 10- and 30-year tranches, according to a market source and a FWP filed with the Securities and Exchange Commission.
A $700 million tranche of 3.4% 10-year debentures at 99.771 to yield 3.427%, or Treasuries plus 100 basis points.
A $800 million tranche of 4.55% debentures due 2044 sold with a spread of Treasuries plus 135 bps.
Pricing was at 99.446 to yield 4.584%.
The notes sold tight of guidance.
BofA Merrill Lynch, Citigroup Global Markets Inc. and Goldman Sachs & Co. were the joint bookrunners.
Proceeds will be used for general corporate purposes, which may include working capital, capital expenditures, repayment of outstanding debt and distributions.
The holding company for railroad transportation subsidiaries is based in Fort Worth, Texas.
| Issuer: | Burlington Northern Santa Fe LLC
|
| Issue: | Debentures
|
| Amount: | $1.5 billion
|
| Joint bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co.
|
| Co-managers: | BNY Mellon Capital Markets, LLC and U.S. Bancorp Investments, Inc.
|
| Trade date: | Aug. 11
|
| Settlement date: | Aug. 18
|
| Ratings: | Moody’s: A3
|
| Standard & Poor’s: BBB+
|
| Distribution: | SEC-registered
|
|
|
| 10-year bonds
|
| Amount: | $700 million
|
| Maturity: | Sept. 1, 2024
|
| Coupon: | 3.4%
|
| Price: | 99.771
|
| Yield: | 3.427%
|
| Spread: | Treasuries plus 100 bps
|
| Price guidance: | 120 bps area
|
|
|
| 30-year bonds
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| Amount: | $800 million
|
| Maturity: | Sept. 1, 2044
|
| Coupon: | 4.55%
|
| Price: | 99.446
|
| Yield: | 4.584%
|
| Spread: | Treasuries plus 135 bps
|
| Price guidance: | 155 bps area
|
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