Published on 6/29/2016 in the Prospect News Investment Grade Daily.
New Issue: Express Scripts Holding sells $4 billion of notes due 2023, 2027, 2046
By Cristal Cody
Eureka Springs, Ark., June 29 – Express Scripts Holding Co. priced $4 billion of senior notes (Baa2/BBB+/BBB) in three tranches on Wednesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company sold $1 billion of 3% seven-year notes at 99.911 to yield 3.014%, or Treasuries plus 170 basis points.
The $1.5 billion tranche of 3.4% notes due March 1, 2027 priced at 99.959 to yield 3.405%. The notes came with a spread of 190 bps over Treasuries.
Express Scripts also sold $1.5 billion of 4.8% 30-year notes at 99.825 to yield 4.811%, or 250 bps over Treasuries.
Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, Mizuho Securities USA Inc., MUFG and SunTrust Robinson Humphrey, Inc. were the bookrunners.
Proceeds will be used to repay about $1.5 billion of the company’s 2017 term loan, to fund tender offers and for general corporate purposes.
Express Scripts is a St. Louis-based pharmacy benefit management provider.
| Issuer: | Express Scripts Holding Co.
|
| Amount: | $4 billion
|
| Securities: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, Mizuho Securities USA Inc., MUFG, SunTrust Robinson Humphrey, Inc.
|
| Co-managers: | Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc., Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC, Fifth Third Securities, Inc., PNC Capital Markets LLC, Santander Investment Securities Inc., Williams Capital Group, LP
|
| Pricing date: | June 29
|
| Settlement date: | July 5
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB+
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| Seven-year notes
|
| Amount: | $1 billion
|
| Maturity: | July 15, 2023
|
| Coupon: | 3%
|
| Price: | 99.911
|
| Yield: | 3.014%
|
| Spread: | Treasuries plus 170 bps
|
| Call feature: | Any time prior to 60 days before maturity at greater of par and make-whole amount of Treasuries plus 25 bps
|
| Price guidance: | Treasuries plus 175 bps, plus or minus 5 bps
|
|
|
| Notes due 2027
|
| Amount: | $1.5 billion
|
| Maturity: | March 1, 2027
|
| Coupon: | 3.4%
|
| Price: | 99.959
|
| Yield: | 3.405%
|
| Spread: | Treasuries plus 190 bps
|
| Call feature: | Any time prior to 90 days before maturity at greater of par and make-whole amount of Treasuries plus 30 bps
|
| Price guidance: | Treasuries plus 195 bps, plus or minus 5 bps
|
|
|
| 30-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | July 15, 2046
|
| Coupon: | 4.8%
|
| Price: | 99.825
|
| Yield: | 4.811%
|
| Spread: | Treasuries plus 250 bps
|
| Call feature: | Any time prior to 180 days before maturity at greater of par and make-whole amount of Treasuries plus 40 bps
|
| Price guidance: | Treasuries plus 255 bps, plus or minus 5 bps
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
