By Marisa Wong
Madison, Wis., Nov. 4 – Navient Corp. disclosed details of its two-tranche sale of senior notes (Ba3/BB/BB) in an FWP filed Tuesday with the Securities and Exchange Commission.
Navient priced $500 million of 5% notes due 2020 at 99.365 to yield 5 1/8%, or Treasuries plus 349.1 basis points, and $500 million of 5 7/8% notes due 2024 at 99.075 to yield 6%, or Treasuries plus 365.2 bps.
Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and RBC Capital Markets, LLC acted as joint bookrunners.
Both tranches of notes will be callable via a make-whole call at 50 basis points over Treasuries. The notes are also putable at 101% if a change-of-control event occurs.
The quick-to-market deal priced on Monday afternoon just hours after the company had filed its prospectus for the registered offering with the SEC. Settlement is slated for Nov. 6.
Navient, a Newark, Del.-based company that provides financial products and services focused on the education lending sector, plans to use proceeds from the new notes for general corporate purposes.
| Issuer: | Navient Corp.
|
| Amount: | $1 billion
|
| Securities: | Senior notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and RBC Capital Markets LLC
|
| Co-managers: | Barclays, Goldman, Sachs & Co., Merrill Lynch, Pierce, Fenner & Smith Inc., RBS Securities Inc.
|
| Call option: | Make-whole call at Treasuries plus 50 bps
|
| Change-of-control put: | At 101%
|
| Trade date: | Nov. 3
|
| Settlement date: | Nov. 6
|
| Ratings: | Moody’s: Ba3
|
| Standard & Poor’s: BB
|
| Fitch: BB
|
| Distribution: | SEC registered
|
| Marketing: | Quick to market
|
|
|
| 2020 notes
|
| Amount: | $500 million
|
| Maturity: | Oct. 26, 2020
|
| Coupon: | 5%
|
| Price: | 99.365
|
| Yield: | 5 1/8%
|
| Spread: | Treasuries plus 349.1 bps
|
|
|
| 2024 notes
|
| Amount: | $500 million
|
| Maturity: | Oct. 25, 2024
|
| Coupon: | 5 7/8%
|
| Price: | 99.075
|
| Yield: | 6%
|
| Spread: | Treasuries plus 365.2 bps
|
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