New Issue: American Express prices $1.5 billion of 2.5% notes due 2024 at 72 bps spread

By Cristal Cody

Tupelo, Miss., July 25 – American Express Co. sold $1.5 billion of 2.5% five-year senior notes (A3/BBB+/A) on Thursday at a spread of 72 basis points over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.

Initial price talk was in the high 80 bps spread area.

The notes priced at 99.678 to yield 2.569%.

Barclays, Deutsche Bank Securities Inc., Mizuho Securities USA Inc. and RBC Capital Markets LLC were the bookrunners.

Proceeds will be used for general corporate purposes.

American Express is a New York City-based credit card services provider.

Issuer:	American Express Co.
Amount:	$1.5 billion
Description:	Senior notes
Maturity:	July 30, 2024
Bookrunners:	Barclays, Deutsche Bank Securities Inc., Mizuho Securities USA Inc. and RBC Capital Markets LLC
Co-managers:	Lloyds Securities Inc., MUFG, NatWest Markets Securities Inc., TD Securities (USA) LLC and U.S. Bancorp Investments, Inc.
Junior co-managers:	RedTail Capital Markets, LLC and Samuel A. Ramirez & Co., Inc.
Coupon:	2.5%
Price:	99.678
Yield:	2.569%
Spread:	Treasuries plus 72 bps
Call feature:	On or after first business day after June 29, 2024 at price equal to principal amount of notes being redeemed, plus accrued and unpaid interest
Trade date:	July 25
Settlement date:	July 30
Ratings:	Moody’s: A3
	S&P: BBB+
	Fitch: A
Distribution:	SEC registered
Price guidance:	Treasuries plus 75 bps area, plus or minus 3 bps; initial talk at Treasuries plus high 80 bps area

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.