By William Gullotti and Cristal Cody
Buffalo, N.Y., April 27 – ERAC USA Finance LLC priced a $3 billion note offering in equal parts due 2028, 2033 and 2053 (Baa1) on Wednesday, according to information provided by a market source.
The company priced the first tranche, which matures in 2028 and carries a 4.6% coupon, at a spread of 120 basis points over Treasuries. Pricing was tighter than guidance in the Treasuries plus 145 bps area.
The 10-year tranche has a 4.9% coupon and priced at Treasuries plus 150 bps, also below initial talk in the Treasuries plus 175 bps area.
The company priced the 30-year tranche, which carries a 5.4% coupon, at a spread of 175 bps over Treasuries. Pricing likewise came in below initial talk in the Treasuries plus 205 bps area.
J.P. Morgan Securities LLC, Mizuho Securities USA Inc. and RBC Capital Markets LLC are the bookrunners.
The financing subsidiary of Enterprise Rent-A-Car Co. is based in St. Louis.
| Issuer: | ERAC USA Finance LLC
|
| Amount: | $3 billion
|
| Issue: | Notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Mizuho Securities USA Inc. and RBC Capital Markets LLC
|
| Trade date: | April 26
|
| Rating: | Moody’s: Baa1
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | May 1, 2028
|
| Coupon: | 4.6%
|
| Spread: | Treasuries plus 120 bps
|
| Initial talk: | Treasuries plus 145 bps area
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | May 1, 2033
|
| Coupon: | 4.9%
|
| Spread: | Treasuries plus 150 bps
|
| Initial talk: | Treasuries plus 175 bps area
|
|
|
| 30-year notes
|
| Amount: | $1 billion
|
| Maturity: | May 1, 2053
|
| Coupon: | 5.4%
|
| Spread: | Treasuries plus 175 bps
|
| Initial talk: | Treasuries plus 205 bps area
|
|
|
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