By Aleesia Forni
Virginia Beach, Oct. 28 – GATX Corp. priced $250 million of 2.6% senior notes (Baa2/BBB/) due March 30, 2020 at Treasuries plus 120 basis points on Tuesday, according to an informed source and an FWP filed with the Securities and Exchange Commission.
Pricing was in line with guidance.
The notes sold at 99.5 to yield 2.7%.
BofA Merrill Lynch, Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC were the bookrunners.
Proceeds will be used to repay commercial paper, to repay the approximately $88 million under the company’s secured floating-rate term loan due Dec. 19, 2020 and for general corporate purposes, including working capital and capital expenditures.
The transportation leasing service company is based in Chicago.
| Issuer: | GATX Corp.
|
| Amount: | $250 million
|
| Description: | Senior notes
|
| Maturity: | March 30, 2020
|
| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC
|
| Senior co-managers: | BMO Capital Markets, U.S. Bancorp Investments Inc.
|
| Co-managers: | KeyBanc Capital Markets, Mizuho Securities, PNC Capital Markets LLC, Williams Capital Group LP, Wells Fargo Securities LLC
|
| Coupon: | 2.6%
|
| Price: | 99.5
|
| Yield: | 2.7%
|
| Spread: | Treasuries plus 120 bps
|
| Make-whole call: | Treasuries plus 20 bps prior to Feb. 29, 2020, then callable at par
|
| Trade date: | Oct. 28
|
| Settlement date: | Oct. 31
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor's: BBB
|
| Price talk: | Treasuries plus 120 bps area
|
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