Published on 2/2/2021 in the Prospect News Investment Grade Daily.
New Issue: GATX prices $700 million senior notes in two tranches due 2031, 2051
By Marisa Wong
Los Angeles, Feb. 2 – GATX Corp. priced $700 million of senior notes (expected: Baa2/BBB) in two parts on Monday, according to an FWP filed with the Securities and Exchange Commission.
GATX priced $400 million of 1.9% notes due June 1, 2031 at 99.248 to yield 1.981%, or a spread of Treasuries plus 90 basis points, and $300 million of 3.1% notes due June 1, 2051 at 99.944 to yield 3.103%, or a spread of Treasuries plus 125 bps.
BofA Securities Inc., Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC are the joint bookrunners.
Proceeds will be used to redeem in full the company’s $300 million of senior notes due June 2021 and for general corporate purposes.
The transportation leasing service company is based in Chicago.
| Issuer: | GATX Corp.
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| Amount: | $700 million
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| Description: | Senior notes
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| Bookrunners: | BofA Securities Inc., Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC
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| Pricing date: | Feb. 1
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| Settlement date: | Feb. 3
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| Expected ratings: | Moody’s: Baa2
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| S&P: BBB
|
|
|
| 2031 notes
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| Amount: | $400 million
|
| Maturity: | June 1, 2031
|
| Senior co-managers: | Fifth Third Securities, Inc., KeyBanc Capital Markets Inc., PNC Capital Markets LLC and U.S. Bancorp Investments, LLC
|
| Co-managers: | BMO Capital Markets Corp., Loop Capital Markets LLC, Siebert Williams Shank & Co. LLC, MUFG and Mizuho Securities USA LLC
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| Coupon: | 1.9%
|
| Price: | 99.248
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| Yield: | 1.981%
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| Spread: | 90 bps over Treasuries
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| Call feature: | At any time prior to March 1, 2031, make-whole call at Treasuries plus 15 bps; par call after that
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|
|
| 2051 notes
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| Amount: | $300 million
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| Maturity: | June 1, 2051
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| Senior co-managers: | BMO Capital Markets Corp., KeyBanc Capital Markets Inc., PNC Capital Markets LLC and U.S. Bancorp Investments, LLC
|
| Co-managers: | Fifth Third Securities, Inc., Loop Capital Markets LLC, Siebert Williams Shank & Co. LLC, MUFG and Mizuho Securities USA LLC
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| Coupon: | 3.1%
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| Price: | 99.944
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| Yield: | 3.103%
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| Spread: | 125 bps over Treasuries
|
| Call feature: | At any time prior to Dec. 1, 2050, make-whole call at Treasuries plus 20 bps; par call after that
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