Published on 1/14/2019 in the Prospect News Investment Grade Daily.
New Issue: FedEx prices $500 million 3.4% three-year guaranteed notes at 93 bps over Treasuries
By Cristal Cody
Tupelo, Miss., Jan. 14 – FedEx Corp. sold $500 million of 3.4% three-year guaranteed senior notes (Baa2/BBB) on Monday at a spread of Treasuries plus 93 basis points, according to an FWP filing with the Securities and Exchange Commission.
The notes priced at 99.884 to yield 3.441%.
BNP Paribas Securities Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., ING Financial Markets LLC and Wells Fargo Securities LLC were the bookrunners.
The notes are guaranteed by Federal Express Corp., FedEx Ground Package System, Inc., FedEx Freight Corp., FedEx Freight, Inc., FedEx Corporate Services, Inc., FedEx Office and Print Services, Inc., Federal Express Europe, Inc., Federal Express Holdings SA and Federal Express International, Inc.
Proceeds will be used for general corporate purposes.
The company also sold €640 million of 0.7% notes due May 13, 2022 at mid-swaps plus 75 bps on Monday, according to a separate FWP filing.
FedEx is a Memphis, Tenn.-based package and freight transportation company.
| Issuer: | FedEx Corp.
|
| Guarantors: | Federal Express Corp., FedEx Ground Package System, Inc., FedEx Freight Corp., FedEx Freight, Inc., FedEx Corporate Services, Inc., FedEx Office and Print Services, Inc., Federal Express Europe, Inc., Federal Express Holdings SA and Federal Express International, Inc.
|
| Amount: | $500 million
|
| Description: | Senior notes
|
| Maturity: | Jan. 14, 2022
|
| Bookrunners: | BNP Paribas Securities Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., ING Financial Markets LLC and Wells Fargo Securities LLC
|
| Co-managers: | Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, Regions Securities LLC Scotia Capital (USA) Inc. and SunTrust Robinson Humphrey, Inc.
|
| Coupon: | 3.4%
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| Price: | 99.884
|
| Yield: | 3.441%
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| Spread: | Treasuries plus 93 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps
|
| Trade date: | Jan. 14
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| Settlement date: | Jan. 16
|
| Ratings: | Moody’s: Baa2
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| S&P: BBB
|
| Distribution: | SEC registered
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