Published on 7/31/2018 in the Prospect News Investment Grade Daily.
New Issue: American Express prices $2.35 billion of five-year senior notes in two tranches
By Cristal Cody
Tupelo, Miss., July 31 – American Express Co. priced $2.35 billion of senior notes (A3/BBB+/A) in two tranches on Tuesday, according to FWP filings with the Securities and Exchange Commission.
The company priced $500 million of five-year floating-rate notes at par to yield Libor plus 75 basis points.
American Express sold $1.85 billion of 3.7% five-year fixed-rate notes at a spread of 87.5 bps over Treasuries. The notes priced at 99.896 to yield 3.723%.
Goldman Sachs & Co. LLC, BofA Merrill Lynch, Mizuho Securities USA Inc. and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used for general corporate purposes.
The credit card services company is based in New York.
| Issuer: | American Express Co.
|
| Amount: | $2.35 billion
|
| Description: | Senior notes
|
| Bookrunners: | Goldman Sachs & Co. LLC, BofA Merrill Lynch, Mizuho Securities USA Inc. and Wells Fargo Securities LLC
|
| Co-managers: | Lloyds Securities Inc., MUFG, SMBC Nikko Securities America, Inc., TD Securities (USA) LLC and U.S. Bancorp Investments, Inc.
|
| Junior co-managers: | Drexel Hamilton, LLC and Westpac Capital Markets LLC
|
| Trade date: | July 31
|
| Settlement date: | Aug. 3
|
| Ratings: | Moody’s: A3
|
| S&P: BBB+
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Five-year floaters
|
| Amount: | $500 million
|
| Securities: | Floating-rate notes
|
| Maturity: | Aug. 3, 2023
|
| Coupon: | Libor plus 75 bps
|
| Price: | Par
|
| Yield: | Libor plus 75 bps
|
| Call feature: | On or after the date that is 31 days before maturity at price equal to principal, plus accrued and unpaid interest
|
|
|
| Five-year notes
|
| Amount: | $1.85 billion
|
| Securities: | Fixed-rate notes
|
| Maturity: | Aug. 3, 2023
|
| Coupon: | 3.7%
|
| Price: | 99.896
|
| Yield: | 3.723%
|
| Spread: | Treasuries plus 87.5 bps
|
| Call feature: | On or after the date that is 31 days before maturity at price equal to principal, plus accrued and unpaid interest
|
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