By Rebecca Melvin
New York, June 28 – Baidu, Inc. priced $1.5 billion of senior notes due in five and 10 years (expected ratings: A3//A) on Wednesday, according to a syndicate source.
The $900 million, five-year tranche priced with a coupon of 2 7/8% at a reoffer price of 99.40 to yield 2.99%, a spread of 118 basis points over U.S. Treasuries.
The $600 million, 10-year tranche priced with a coupon of 3 5/8% at a reoffer price of 99.576 to yield 3.676%, a spread to Treasuries of 145 bps.
Goldman Sachs (Asia) LLC, J. P. Morgan Securities LLC and HSBC are joint bookrunners for the deal.
Proceeds of the SEC-registered notes are earmarked to repay existing debt and for general corporate purposes.
The company plans to list the notes on the Singapore Exchange Securities Trading Ltd.
Baidu is a Beijing-based web services company.
| Issuer: | Baidu, Inc.
|
| Amount: | $1.5 billion
|
| Description: | Senior notes
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| Bookrunners: | Goldman Sachs (Asia) LLC, J.P. Morgan Securities LLC and HSBC
|
| Co-managers: | Morgan Stanley, DBS Bank Ltd. and CICC HK Securities
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| Trade date: | June 28
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| Settlement date: | July 6
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| Expected ratings: | Moody’s: A3
|
| Fitch: A
|
| Distribution: | Securities and Exchange Commission registered
|
|
|
| Five-year notes
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| Amount: | $900 million
|
| Maturity: | July 6, 2022
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| Coupon: | 2 7/8%
|
| Price: | 99.40
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| Yield: | 2.99%
|
| Spread: | Treasuries plus 118 bps
|
| Call: | Make-whole call at Treasuries plus 20 bps
|
|
|
| Ten-year notes
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| Amount: | $600 million
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| Maturity: | July 6, 2027
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| Coupon: | 3 5/8%
|
| Price: | 99.576
|
| Yield: | 3.676%
|
| Spread: | Treasuries plus 145 bps
|
| Call: | Make-whole call at Treasuries plus 25 bps
|
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