By Paul Deckelman
New York, Nov. 3 – Navient Corp. priced $1 billion of six-year and 10-year notes (Ba3/BB) in a two-tranche offering on Monday, high-yield syndicate sources said.
The issue consisted of $500 million of 5 1/8% senior unsecured notes due 2020, which priced at 99.365, and $500 million of 5 7/8% notes due 2024, which priced at 99.075.
The offering was brought to market via joint bookrunning managers Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and RBC Capital Markets Corp.
Both tranches of notes will be non-callable for the life of the issue other than via a make-whole call at 50 basis points over Treasuries.
Holders will be able to put the bonds back to the company at 101% plus accrued interest should a change-of-control event take place.
The quick-to-market deal priced on Monday afternoon just hours after the company had filed its prospectus for the registered offering with the Securities and Exchange Commission.
Navient, a Newark, Del.-based company that provides financial products and services focused on the education lending sector, plans to use the deal proceeds for general corporate purposes.
| Issuer: | Navient Corp.
|
| Amount: | $1 billion
|
| Securities: | Senior notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Deutsche bank Securities Inc., J.P. Morgan Securities LLC and RBC Capital Markets Corp.
|
| Call protection: | Non-callable except for a make-whole call at T+50 bps
|
| Change of Control : | 101%
|
| Trade date: | Nov. 3
|
| Settlement date: | Nov. 6
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB
|
| Distribution: | SEC registered
|
| Marketing: | Quick-to-market.
|
|
|
| Tranche 1
|
| Amount: | $500 million
|
| Maturity: | Oct. 26, 2020
|
| Coupon: | 5 1/8%
|
| Price: | 99.365
|
|
|
| Tranche 2
|
| Amount: | $500 million
|
| Maturity: | Oct. 25, 2024
|
| Coupon: | 5 7/8%
|
| Price: | 99.075
|
|
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