Published on 10/24/2017 in the Prospect News Investment Grade Daily.
New Issue: American Express sells $3.65 billion of fixed- and floating-rate notes
By Devika Patel
Knoxville, Tenn., Oct. 24 – American Express Credit Corp. priced $3.65 billion of notes (A3/BBB+/A) in three tranches on Monday, according to three FWPs filed with the Securities and Exchange Commission.
American Express priced $500 million of three-year floating-rate notes at Libor plus 33 basis points. These notes were sold at par.
The company priced $1.5 billion of 2.2% three-year fixed-rate notes at a spread of Treasuries plus 55 bps. These notes priced at 99.87 to yield 2.245%.
American Express priced $1.65 billion of 3% seven-year fixed-rate notes at a Treasuries plus 80 bps spread. These notes priced at 99.937 to yield 3.01%.
Barclays, Deutsche Bank Securities Inc., Mizuho Securities USA Inc., RBC Capital Markets Corp. and Wells Fargo Securities LLC were the bookrunners.
American Express Credit is a New York City-based credit card services provider.
| Issuer: | American Express Credit Corp.
|
| Amount: | $3.65 billion
|
| Description: | Notes
|
| Bookrunners: | Barclays, Deutsche Bank Securities Inc., Mizuho Securities USA Inc., RBC Capital Markets Corp. and Wells Fargo Securities LLC
|
| Co-managers: | Lloyds Securities Inc., MUFG, RBS Securities Inc., TD Securities (USA) LLC and U.S. Bancorp Investments Inc.
|
| Junior co-managers: | CastleOak Securities LP, Drexel Hamilton, LLC, RedTail Capital Markets, LLC and R. Seelaus & Co., Inc.
|
| Trade date: | Oct. 23
|
| Settlement date: | Oct. 30
|
| Ratings: | Moody’s: A3
|
| S&P: BBB+
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Three-year floaters
|
| Amount: | $500 million
|
| Maturity: | Oct. 30, 2020
|
| Coupon: | Libor plus 33 bps
|
| Price: | Par
|
| Yield: | Libor plus 33 bps
|
| Call: | Par call on or after 31 days before maturity
|
|
|
| Three-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | Oct. 30, 2020
|
| Coupon: | 2.2%
|
| Price: | 99.87
|
| Yield: | 2.245%
|
| Spread: | Treasuries plus 55 bps
|
| Call: | Par call on or after 31 days before maturity
|
|
|
| Seven-year notes
|
| Amount: | $1.65 billion
|
| Maturity: | Oct. 30, 2024
|
| Coupon: | 3%
|
| Price: | 99.937
|
| Yield: | 3.01%
|
| Spread: | Treasuries plus 80 bps
|
| Call: | Par call on or after 31 days before maturity
|
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