By Cristal Cody
Tupelo, Miss., Feb. 6 – Southwest Airlines Co. priced $500 million of 2.625% notes due Feb. 10, 2030 (A3/BBB+/A-) on Wednesday at a spread of 103 basis points over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.
Initial price talk was in the 125 bps spread area.
The notes were sold at 99.468 to yield 2.686%.
Barclays, Citigroup Global Markets Inc. and U.S. Bancorp were the bookrunners.
The notes have a change-of-control put at 101% and contain certain covenants that limit Southwest Airlines’ ability to engage in mergers and consolidations.
Proceeds from the deal will be used for general corporate purposes.
Dallas-based Southwest Airlines is a passenger airline company.
| Issuer: | Southwest Airlines Co.
|
| Amount: | $500 million
|
| Description: | Notes
|
| Maturity: | Feb. 10, 2030
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc. and U.S. Bancorp Investments, Inc
|
| Co-managers: | Comerica Securities, Inc. and Drexel Hamilton, LLC
|
| Coupon: | 2.625%
|
| Price: | 99.468
|
| Yield: | 2.686%
|
| Spread: | Treasuries plus 103 bps
|
| Call feature: | Make-whole call before Nov. 10, 2029 at Treasuries plus 20 bps; thereafter at par
|
| Change-of-control put: | 101%
|
| Trade date: | Feb. 5
|
| Settlement date: | Feb. 10
|
| Ratings: | Moody’s: A3
|
| S&P: BBB+
|
| Fitch: A-
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 125 bps area
|
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