Published on 2/22/2016 in the Prospect News Investment Grade Daily.
New Issue: Express Scripts sells $2 billion of five-, 10-year senior notes
By Aleesia Forni
New York, Feb. 22 – Express Scripts Holding Co. sold $2 billion of senior notes (Baa2/BBB+/BBB) in two tranches on Monday, according to an FWP filed with the Securities and Exchange Commission.
The company sold $500 million of 3.3% five-year notes sold at Treasuries plus 210 basis points. Pricing was at 99.79 to yield 3.346%.
Guidance was in the 215 bps area over Treasuries after being tightened from the 240 bps area.
Also, $1.5 billion of 4.5% 10-year bonds priced at 99.467 to yield 4.567%, or 280 bps over Treasuries.
The notes were talked in the area of 295 bps over Treasuries, which was tightened from the 295 bps area.
Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and BofA Merrill Lynch are the joint bookrunners.
Proceeds will be used to fund a tender offer, to fund the repurchase of common stock 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 billion
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, BofA Merrill Lynch
|
| Co-managers: | Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc., MUFG, Mizuho Securities USA Inc., RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC
|
| Trade date: | Feb. 22
|
| Settlement date: | Feb. 25
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: BBB+
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | Feb. 25, 2021
|
| Coupon: | 3.3%
|
| Price: | 99.79
|
| Yield: | 3.346%
|
| Spread: | Treasuries plus 210 bps
|
| Price guidance: | Treasuries plus 215 bps area, tightened from Treasuries plus 240 bps area
|
| Make-whole call: | Treasuries plus 35 bps prior to Jan. 25, 2021, then callable at par
|
|
|
| 10-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | Feb. 25, 2026
|
| Coupon: | 4.5%
|
| Price: | 99.467
|
| Yield: | 4.567%
|
| Spread: | Treasuries plus 280 bps
|
| Price guidance: | Treasuries plus 285 bps area, tightened from Treasuries plus 295 bps area
|
| Make-whole call: | Treasuries plus 45 bps prior to Nov. 25, 2025, then callable at par
|
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