By Wendy Van Sickle
Columbus, Ohio, April 26 – American Express Co. sold $2.5 billion of fixed-to-floating rate notes (A2/BBB+/A) in two parts on Wednesday, according to an FWP filed with the Securities and Exchange Commission.
The company priced $1.25 billion of 4.99% three-year fixed-to-floaters at par and a spread of Treasuries plus 98 basis points.
Interest is fixed for the first two years, then will float at compounded SOFR plus 99.9 bps.
These notes are callable in whole on May 1, 2025 or in whole or in part during the 31 days prior to their maturity. In both cases, the redemption price is par.
American Express also priced $1.25 billion of 5.043% 11-year fixed-to-floaters at par and a spread of Treasuries plus 160 bps.
Interest is fixed for the first 10 years, then will float at compounded SOFR plus 183.5 bps.
These notes are callable in whole on May 1, 2033 or in whole or in part during the three months prior to their maturity. In both cases, the redemption price is par.
Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC and RBC Capital Markets, LLC are the joint bookrunners.
Proceeds will be used for general corporate purposes.
The credit card services company is based in New York.
| Issuer: | American Express Co.
|
| Amount: | $2.5 billion
|
| Issue: | Fixed-to-floating rate notes
|
| Bookrunners: | Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC and RBC Capital Markets, LLC
|
| Co-managers: | Lloyds Securities Inc., MUFG Securities Americas Inc., R. Seelaus & Co., LLC, SMBC Nikko Securities America, Inc. and TD Securities (USA) LLC
|
| Junior co-managers: | CastleOak Securities, LP and Samuel A. Ramirez & Co., Inc.
|
| Trustee: | Bank of New York Mellon
|
| Counsel to issuer: | In-house
|
| Counsel to underwriters: | Cleary Gottlieb Steen & Hamilton LLP
|
| Trade date: | April 26
|
| Settlement date: | May 1
|
| Ratings: | Moody’s: A2
|
| S&P: BBB+
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| 2026 notes
|
| Amount: | $1.25 billion
|
| Maturity: | May 1, 2026
|
| Coupon: | 4.989% until May 1, 2025 then compounded SOFR plus 99.9 bps
|
| Price: | Par
|
| Spread: | Treasuries plus 98 bps
|
| Call option: | At par in whole on May 1, 2025 or in whole or in part during the 31 days prior to maturity
|
| Cusip: | 025816DE6
|
|
|
| 2034 notes
|
| Maturity: | May 1, 2034
|
| Amount: | $1.25 billion
|
| Coupon: | 5.043% until May 1, 2033, then compounded SOFR plus 183.5 bps
|
| Price: | Par
|
| Spread: | Treasuries plus 183.5 bps
|
| Call option: | At par in whole on May 1, 2033 or in whole or in part during the three months prior to maturity
|
| Cusip: | 025816DF3
|
|
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