By Aleesia Forni
Virginia Beach, June 2 - Express Scripts Holding Co. sold $2.5 billion of senior notes (Baa3/BBB+/) in three tranches on Monday, a market source said.
The company priced $500 million of 1.25% three-year notes at 99.963 to yield 1.263%, or Treasuries plus 45 basis points.
A second tranche was $1 billion of 2.25% five-year notes priced at 99.759 to yield 2.301%, or Treasuries plus 70 bps.
Finally, $1 billion of 3.5% 10-year notes sold at 99.272 to yield 3.587%.
The notes priced at Treasuries plus 105 bps.
All three tranches sold at the tight end of talk.
Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and RBS Securities Inc. were the joint bookrunners.
Proceeds will be used to repay the company's 2.75% senior notes due 2014, to redeem its 3.5% senior notes due 2016 and for general corporate purposes.
Express Scripts is a St. Louis-based pharmacy benefit management provider.
| Issuer: | Express Scripts Holding Co.
|
| Issue: | Senior notes
|
| Amount: | $2.5 billion
|
| Joint bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., RBS Securities Inc.
|
| Trade date: | June 2
|
| Settlement date: | June 5
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB+
|
| Distribution: | SEC-registered
|
|
|
| Three-year notes
|
| Amount: | $500 million
|
| Maturity: | June 2, 2017
|
| Coupon: | 1.25%
|
| Price: | 99.963
|
| Yield: | 1.263%
|
| Spread: | Treasuries plus 45 bps
|
| Price talk: | Treasuries plus 50 bps area, tightened from Treasuries plus 60 bps area
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | June 15, 2019
|
| Coupon: | 2.25%
|
| Price: | 99.759
|
| Yield: | 3.587%
|
| Spread: | Treasuries plus 70 bps
|
| Price talk: | Treasuries plus 75 bps, tightened from Treasuries plus 85 bps area
|
|
|
| Ten-year notes
|
| Amount: | $1 billion
|
| Maturity: | June 15, 2024
|
| Coupon: | 3.5%
|
| Price: | 99.272
|
| Yield: | 3.587%
|
| Spread: | Treasuries plus 105 bps
|
| Price talk: | Treasuries plus 110 bps, tightened from Treasuries plus 120 bps
|
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