Published on 5/11/2021 in the Prospect News Investment Grade Daily.
New Issue: Automatic Data Processing prices $1 billion 1.7% seven-year notes at 48 bps spread
By Devika Patel and Cristal Cody
Knoxville, Tenn., May 11 – Automatic Data Processing, Inc. priced $1 billion of 1.7% seven-year notes (Aa3/AA-/AA-) at Treasuries plus 48 basis points on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes priced at 99.698 to yield 1.746%.
The notes were talked in the area of 70 bps over Treasuries.
BofA Securities Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are the active bookrunners. Passive bookrunners are BNP Paribas Securities Corp., Morgan Stanley & Co. LLC and Wells Fargo Securities LLC.
Proceeds will be used to repurchase shares under the company’s existing share repurchase program over the next six to 12 months, subject to market conditions, with any remainder for general corporate purposes, according to 424B2 filing with the SEC.
ADP is a human resources management software and services company based in Roseland, N.J.
| Issuer: | Automatic Data Processing, Inc.
|
| Amount: | $1 billion
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| Description: | Notes
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| Maturity: | May 15, 2028
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| Bookrunners: | BofA Securities Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC (active); BNP Paribas Securities Corp., Morgan Stanley & Co. LLC and Wells Fargo Securities LLC (passive)
|
| Co-managers: | Barclays, MUFG, RBC Capital Markets, LLC, PNC Capital Markets LLC, BMO Capital Markets Corp., U.S. Bancorp Investments, Inc., Mizuho Securities USA LLC, Siebert Williams Shank & Co., LLC, Fifth Third Securities, Inc., Santander Investment Securities Inc., Scotia Capital (USA) Inc., SG Americas Securities, LLC, Truist Securities, Inc., Academy Securities, Inc., BNY Mellon Capital Markets, LLC, HSBC Securities (USA) Inc., Huntington Securities, Inc., ING Financial Markets LLC, Intesa Sanpaolo SpA and TD Securities (USA) LLC
|
| Coupon: | 1.7%
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| Price: | 99.698
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| Yield: | 1.746%
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| Spread: | Treasuries plus 48 bps
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| Call: | Make-whole at Treasuries plus 10 bps prior to March 15, 2028, then anytime afterward at par
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| Change-of-control: | At 101
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| Trade date: | May 11
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| Settlement date: | May 14
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| Ratings: | Moody’s: Aa3
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| S&P: AA-
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| Fitch: AA-
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| Distribution: | SEC registered
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| Guidance: | Treasuries plus 70 bps area
|
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