By Marisa Wong and Cristal Cody
Los Angeles, March 27 – Glencore Funding LLC priced $4 billion of notes (Baa1/BBB+) in five tranches on Tuesday, according to a market source.
Glencore priced $350 million of floating-rate notes due April 4, 2027 at SOFR plus 106 basis points. Initial price talk was SOFR plus an equivalent spread.
The fixed-rate tranche of notes due April 4, 2027 totaled $800 million and priced with a 5.338% coupon and a spread of 95 bps over Treasuries. Initial price talk was in the Treasuries plus 115 bps area.
The third tranche was $1.1 billion of 5.371% notes due 2029, priced at Treasuries plus 115 bps. Initial price talk was in the Treasuries plus 135 bps area.
In the fourth tranche, Glencore sold $1.25 billion of 5.634% notes due 2034 at Treasuries plus 140 bps. Initial price talk was in the Treasuries plus 160 bps area.
The final tranche was for $500 million of 5.893% notes due 2054 priced at Treasuries plus 150 bps. Initial price talk was in the Treasuries plus 175 bps area.
BBVA Securities Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc., Morgan Stanley & Co. LLC and SMBC Nikko Securities America Inc. are the bookrunners.
Glencore Funding is a Stamford, Conn.-based U.S. funding arm of Glencore plc. Based in Baar, Switzerland, Glencore is a supplier of commodities and raw materials to industrial consumers.
| Issuer: | Glencore Funding LLC
|
| Amount: | $4 billion
|
| Issue: | Notes
|
| Bookrunners: | BBVA Securities Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc., Morgan Stanley & Co. LLC and SMBC Nikko Securities America Inc.
|
| Pricing date: | March 26
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
|
|
| 2027 floaters
|
| Amount: | $350 million
|
| Maturity: | April 4, 2027
|
| Coupon: | SOFR plus 106 bps
|
| Price talk: | SOFR plus an equivalent spread
|
|
|
| 2027 notes
|
| Amount: | $800 million
|
| Maturity: | April 4, 2027
|
| Coupon: | 5.338%
|
| Spread: | Treasuries plus 95 bps
|
| Price talk: | Treasuries plus 115 bps area
|
|
|
| 2029 notes
|
| Amount: | $1.1 billion
|
| Maturity: | April 4, 2029
|
| Coupon: | 5.371%
|
| Spread: | Treasuries plus 115 bps
|
| Price talk: | Treasuries plus 135 bps area
|
|
|
| 2034 notes
|
| Amount: | $1.25 billion
|
| Maturity: | April 4, 2034
|
| Coupon: | 5.634%
|
| Spread: | Treasuries plus 140 bps
|
| Price talk: | Treasuries plus 160 bps area
|
|
|
| 2054 notes
|
| Amount: | $500 million
|
| Maturity: | April 4, 2054
|
| Coupon: | 5.893%
|
| Spread: | Treasuries plus 150 bps
|
| Price talk: | Treasuries plus 175 bps area
|
|
|
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