New Issue: GATX sells $400 million 6.9% senior notes due 2034 at 205 bps spread

By Wendy Van Sickle

Columbus, Ohio, Oct. 31 – GATX Corp. priced $400 million of 6.9% senior notes due May 1, 2034 (expected: Baa2/BBB/BBB+) on Tuesday, according to an FWP filing with the Securities and Exchange Commission.

The notes priced at 99.831 to yield 6.923%, or with a spread of 205 basis points over Treasuries.

BofA Securities, Inc., Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC are the bookrunners.

Proceeds will be used to repay at maturity $300 million of outstanding 4.35% senior notes due February 2024. The remaining proceeds will be used for general corporate purposes.

The railcar leasing company is based in Chicago.

Issuer:	GATX Corp.
Amount:	$400 million
Issue:	Senior notes
Maturity:	May 1, 2034
Bookrunners:	BofA Securities, Inc., Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC
Senior co-managers:	KeyBanc Capital Markets Inc., PNC Capital Markets LLC and U.S. Bancorp Investments, Inc.
Co-managers:	BMO Capital Markets Corp., Huntington Securities, Inc., Loop Capital Markets LLC, Siebert Williams Shank & Co., LLC and MUFG Securities Americas Inc.
Trustee:	U.S. Bank Trust Co., NA
Counsel to issuer:	Mayer Brown LLP
Counsel to underwriters:	Winston & Strawn LLP
Coupon:	6.9%
Price:	99.831
Yield:	6.923%
Spread:	Treasuries plus 205 bps
Call options:	Make-whole call at Treasuries plus 35 bps until Feb. 1, 2034, then par call
Pricing date:	Oct. 31
Settlement date:	Nov. 2
Expected ratings:	Moody’s: Baa2
	S&P: BBB
	Fitch: BBB+
Cusip:	361448BN2

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