Published on 8/11/2020 in the Prospect News Investment Grade Daily.
New Issue: Automatic Data Processing sells $1 billion 1.25% 10-year notes at 65 bps spread
By Cristal Cody
Tupelo, Miss., Aug. 11 – Automatic Data Processing, Inc. priced $1 billion of 1.25% 10-year senior notes (Aa3/AA) on Tuesday at 99.746 to yield 1.277%, or a spread of Treasuries plus 65 basis points, according to a market source.
Initial price talk was in the 75 bps over Treasuries area.
BofA Securities, Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BNP Paribas Securities Corp., Deutsche Bank Securities Inc. and Wells Fargo Securities, LLC were the bookrunners.
The company held a virtual roadshow and fixed income investor calls for the offering on Monday.
Proceeds will be used to refinance existing debt and for general corporate purposes.
ADP is a human resources management software and services company based in Roseland, N.J.
| Issuer: | Automatic Data Processing, Inc.
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| Amount: | $1 billion
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| Description: | Senior notes
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| Maturity: | Sept. 1, 2030
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| Bookrunners: | BofA Securities, Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BNP Paribas Securities Corp., Deutsche Bank Securities Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | Barclays, MUFG, PNC Capital Markets LLC, BMO Capital Markets Corp., RBC Capital Markets, LLC, U.S. Bancorp Investments, Inc., Mizuho Securities USA LLC, Siebert Williams Shank & Co., LLC, Scotia Capital (USA) Inc., SG Americas Securities, LLC, Truist Securities, Inc., Academy Securities, Inc., BNY Mellon Capital Markets, LLC, Fifth Third Securities, Inc., ING Financial Markets LLC, Intesa Sanpaolo SpA, Santander Investment Securities Inc. and TD Securities (USA) LLC
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| Coupon: | 1.25%
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| Price: | 99.746
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| Yield: | 1.277%
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| Spread: | Treasuries plus 65 bps
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| Call features: | Make-whole call at Treasuries plus 10 bps before June 1, 2030; thereafter at par
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| Change-of-control put: | 101%
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| Trade date: | Aug. 11
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| Settlement date: | Aug. 13
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| Ratings: | Moody’s: Aa3
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| S&P: AA
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| Distribution: | SEC registered
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| Price guidance: | Treasuries plus 75 bps area
|
| Marketing: | Virtual roadshow, fixed income investor calls
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