By Aleesia Forni
Virginia Beach, Feb. 27 - GATX Corp. priced an upsized $850 million three-part issue of senior notes (Baa2/BBB/) during Thursday's session, according to a market source and an FWP filed with the Securities and Exchange Commission.
The sale included $300 million of 1.25% senior notes due 2017 sold with a spread of 60 basis points over Treasuries.
Pricing was at 99.941 to yield 1.27%.
A $250 million tranche of 2.5% five-year notes priced at 105 bps over Treasuries.
The notes sold at 99.866 to yield 2.527%.
Finally, $300 million of 5.2% bonds due 2044 sold at 99.862 to yield 5.209%, or Treasuries plus 160 bps.
All three tranches of the sale sold at the tight end of talk.
Proceeds will be used to repay $300 million of the company's 8.75% notes due May 15, 2015 and to repay two unsecured floating-rate term loan facilities maturing June 12, 2017 and Dev. 21, 2017.
Proceeds will also be used for general corporate purposes, including working capital and capital expenditures.
The bookrunners were BofA Merrill Lynch, Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC.
There is a change-of-control put at 101.
The transportation leasing service company is based in Chicago.
| Issuer: | GATX Corp
|
| Issue: | Senior notes
|
| Amount: | $850 million, upsized from $750 million
|
| Joint bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC
|
| Senior co-managers: | Mizuho Securities USA Inc., U.S. Bancorp Investments Inc.
|
| Co-managers: | BMO Capital Markets Corp., BNY Mellon Capital Markets Inc., KeyBanc Capital Markets LLC, Loop Capital Markets LLC, Mitsubishi UFJ Securities (USA) Inc., PNC Capital Markets LLC, Williams Capital Group LP, Wells Fargo Securities LLC
|
| Trade date: | Feb. 27
|
| Settlement date: | March 4
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
|
|
| Notes due 2017
|
| Amount: | $300 million
|
| Maturity: | March 4, 2017
|
| Coupon: | 1.25%
|
| Price: | 99.941
|
| Yield: | 1.27%
|
| Spread: | Treasuries plus 60 bps
|
| Price talk: | Treasuries plus 65 bps area
|
| Make-whole call: | Treasuries plus 10 bps
|
|
|
| Notes due 2019
|
| Amount: | $250 million
|
| Maturity: | July 30, 2019
|
| Coupon: | 2.5%
|
| Price: | 99.866
|
| Yield: | 2.527%
|
| Spread: | Treasuries plus 105 bps
|
| Price talk: | Treasuries plus 110 bps area
|
| Make-whole call: | Treasuries plus 20 bps
|
|
|
| Notes due 2044
|
| Amount: | $300 million
|
| Maturity: | March 15, 2044
|
| Coupon: | 5.2%
|
| Price: | 99.862
|
| Yield: | 5.209%
|
| Spread: | Treasuries plus 160 bps
|
| Price talk: | Treasuries plus 165 bps area
|
| Make-whole call: | Treasuries plus 25 bps prior to Sept. 15, 2043, then callable at par
|
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