By Andrea Heisinger
Omaha, Oct. 10 - ERAC USA priced a $2.75 billion issue of notes (Baa2/BBB) in three tranches Wednesday, an informed source said.
The $500 million tranche of 5.8% five-year notes priced at 99.923 to yield 5.818%, or Treasuries plus 145 basis points.
The $1 billion tranche of 6.375% 10-year notes priced at 99.825 to yield 6.399%, or Treasuries plus 175 bps.
The $1.25 billion tranche of 7% 30-year notes priced at 99.137 to yield 7.07%, or Treasuries plus 220 bps.
They are being sold via Rule 144A.
Bookrunners were Goldman, Sachs & Co. and J.P. Morgan Securities Inc.
ERAC is a car rental company based in St. Louis.
| Issuer: | ERAC USA
|
| Issue: | Notes
|
| Total amount: | $2.75 billion
|
| Bookrunners: | Goldman, Sachs & Co., J.P. Morgan Securities Inc.
|
| Trade date: | Oct. 10
|
| Settlement date: | Oct. 17
|
| Distribution: | Rule 144A
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
|
|
| Five-year tranche
|
| Amount: | $500 million
|
| Coupon: | 5.8%
|
| Price: | 99.923
|
| Yield: | 5.818%
|
| Spread: | Treasuries plus 145 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
|
|
| 10-year tranche
|
| Amount: | $1 billion
|
| Coupon: | 6.375%
|
| Price: | 99.825
|
| Yield: | 6.399%
|
| Spread: | Treasuries plus 175 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
|
|
| 30-year tranche
|
| Amount: | $1.25 billion
|
| Coupon: | 7%
|
| Price: | 99.137
|
| Yield: | 7.07%
|
| Spread: | Treasuries plus 220 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
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