By Christine Van Dusen
Atlanta, June 23 – China’s Baidu Inc. priced a $1.25 billion two-tranche issue of notes due in five and 10 years (expected ratings: A3//A), according to an FWP filing with the Securities and Exchange Commission.
The $750 million of 3% notes due June 30, 2020 priced at 99.866 to yield 3.029%, or Treasuries plus 135 basis points. That was at the tight end of talk that had been set in the 140 bps area.
The $500 million of 4 1/8% notes due June 30, 2025 priced at 99.830 to yield 4.146%, or 175 bps over Treasuries, also at the tight end of talk, set in the 180 bps area for this tranche.
Goldman Sachs and JPMorgan Securities were the bookrunners for the Securities and Exchange Commission-registered deal.
The proceeds will be used for general corporate purposes.
Baidu is a Chinese-language internet search provider based in Beijing.
| Issuer: | Baidu Inc.
|
| Amount: | $1.25 billion
|
| Description: | Senior notes
|
| Bookrunners: | Goldman Sachs (Asia) LLC, J.P. Morgan Securities LLC
|
| Co-managers: | Deutsche Bank AG, Singapore Branch, Citigroup Global Markets Inc., Bank of China Ltd., Australia and New Zealand Banking Group Ltd.
|
| Call options: | Make-whole call; call at 101% if there is a triggering event
|
| Trade date: | June 23
|
| Settlement date: | June 30
|
| Expected ratings: | Moody’s: A3
|
| Fitch: A
|
| Distribution: | Securities and Exchange Commission registered
|
|
|
| Five-year notes
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| Amount: | $750 million
|
| Maturity: | June 30, 2020
|
| Coupon: | 3%
|
| Price: | 99.866
|
| Yield: | 3.029%
|
| Spread: | Treasuries plus 135 bps
|
| Price talk: | Treasuries plus 140 bps area
|
| Call: | Make-whole call at Treasuries plus 25 bps
|
|
|
| Ten-year notes
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| Amount: | $500 million
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| Maturity: | June 30, 2025
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| Coupon: | 4 1/8%
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| Price: | 99.830
|
| Yield: | 4.146%
|
| Spread: | Treasuries plus 175 bps
|
| Price talk: | Treasuries plus 180 bps area
|
| Call: | Make-whole call at Treasuries plus 30 bps
|
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