By Wendy Van Sickle
Columbus, Ohio, Aug. 18 – Baidu, Inc. sold a combined $1 billion of senior notes (A3//A) in two tranches on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
The company sold $300 million of 1 5/8% notes due Feb. 23, 2027 at 99.953 to yield 1.634%, or 83 basis points over U.S. Treasuries.
Baidu priced $700 million of 2 3/8% 10-year notes at 99.523 to yield 2.429%, or 130 bps over Treasuries.
Goldman Sachs (Asia) LLC, BofA Securities, Inc., J.P. Morgan Securities LLC and China International Capital Corp. Hong Kong Securities Ltd. are joint bookrunners for the deal, which is registered with the SEC.
Proceeds from the notes will go toward repaying existing debt and for general corporate purposes. Previously, Baidu had indicated a portion of the proceeds would be used for sustainability purposes.
Baidu is a Beijing-based web services company.
| Issuer: | Baidu, Inc.
|
| Issue: | Senior notes
|
| Amount: | $1 billion
|
| Bookrunners: | Goldman Sachs (Asia) LLC, BofA Securities, Inc., J.P. Morgan Securities LLC, China International Capital Corp. Hong Kong Securities Ltd.
|
| Co-manager: | Bocom International Securities Ltd.
|
| Trade date: | Aug. 18
|
| Settlement date: | Aug. 23
|
| Ratings: | Moody’s: A3
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| 2027 notes
|
| Amount: | $300 million
|
| Maturity: | Feb. 23, 2027
|
| Coupon: | 1 5/8%
|
| Price: | 99.953
|
| Yield: | 1.634%
|
| Spread: | Treasuries plus 83 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps until Jan. 23, 2027; par afterward
|
| Cusip: | 056752AV0
|
|
|
| 2031 notes
|
| Amount: | $700 million
|
| Maturity: | Aug. 23, 2031
|
| Coupon: | 2 3/8%
|
| Price: | 99.523
|
| Yield: | 2.429%
|
| Spread: | Treasuries plus 130 bps
|
| Call: | Make-whole call at Treasuries plus 20 bps until May 23, 2031; par afterward
|
| Cusip: | 056752AU2
|
|
|
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