Published on 8/7/2019 in the Prospect News Investment Grade Daily.
New Issue: Global Payments prices $3 billion of senior notes in three tranches
By Cristal Cody
Tupelo, Miss., Aug. 7 – Global Payments Inc. priced a $3 billion three-part offering of fixed-rate senior notes on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
A $1 billion tranche of 2.65% notes due Feb. 15, 2025 priced at 99.975 to yield 2.655%, or a spread of 115 basis points over Treasuries.
The company sold $1.25 billion of 3.2% 10-year notes at 99.686 to yield 3.237%. The notes priced with a Treasuries plus 155 bps spread.
Global Payments placed $750 million of 4.15% 30-year notes at 99.744 to yield 4.165% and a Treasuries plus 195 bps spread.
The active bookrunners were BofA Securities, Inc. and J.P. Morgan Securities LLC.
Passive bookrunners were Capital One Securities, Inc., MUFG, PNC Capital Markets LLC, SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC and Wells Fargo Securities, LLC.
Proceeds will be used for the company’s planned merger with Total System Services, Inc.
The company held fixed income investor calls on Monday and Tuesday.
Global Payments is an Atlanta-based provider of payment technology services.
| Issuer: | Global Payments Inc.
|
| Amount: | $3 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities, Inc. and J.P. Morgan Securities LLC
|
| Passive bookrunners: | Capital One Securities, Inc., MUFG, PNC Capital Markets LLC, SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC and Wells Fargo Securities, LLC
|
| Senior co-manager: | Fifth Third Securities, Inc.
|
| Co-managers: | BMO Capital Markets Corp., Regions Securities LLC, U.S. Bancorp Investments, Inc., Barclays, CIBC World Markets Corp., HSBC Securities (USA) Inc., Mizuho Securities USA LLC, Synovus Securities, Inc. and Citizens Capital Markets, Inc.
|
| Trade date: | Aug. 7
|
| Settlement date: | Aug. 14
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
| Marketing: | Fixed income investor calls
|
|
|
| Six-year notes
|
| Amount: | $1 billion
|
| Maturity: | Feb. 15, 2025
|
| Coupon: | 2.65%
|
| Price: | 99.975
|
| Yield: | 2.655%
|
| Spread: | Treasuries plus 115 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps before Jan. 15, 2025; thereafter at par; special mandatory call if merger not completed by Nov. 27, 2020 at 101
|
|
|
| 10-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Aug. 15, 2029
|
| Coupon: | 3.2%
|
| Price: | 99.686
|
| Yield: | 3.237%
|
| Spread: | Treasuries plus 155 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps before May 15, 2029; thereafter at par; special mandatory call if merger not completed by Nov. 27, 2020 at 101
|
|
|
| 30-year notes
|
| Amount: | $750 million
|
| Maturity: | Aug. 15, 2049
|
| Coupon: | 4.15%
|
| Price: | 99.744
|
| Yield: | 4.165%
|
| Spread: | Treasuries plus 195 bps
|
| Call features: | Make-whole call at Treasuries plus 30 bps before Feb. 15, 2049; thereafter at par; special mandatory call if merger not completed by Nov. 27, 2020 at 101
|
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