Published on 3/29/2017 in the Prospect News Investment Grade Daily.
New Issue: Union Pacific prices $1 billion of senior notes in two tranches
By Cristal Cody
Tupelo, Miss., March 29 – Union Pacific Corp. priced $1 billion of senior notes (A3/A) in two tranches on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
Union Pacific priced $500 million of 3% 10-year notes at 98.608 to yield 3.163%. The notes priced at a spread of 77 basis points over Treasuries.
Union Pacific sold $500 million of 4% 30-year notes with a spread of Treasuries plus 107 bps. The notes priced at 98.655 to yield 4.078%.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch and Morgan Stanley & Co. LLC were the bookrunners.
The Omaha-based railroad transportation company will use the proceeds for general corporate purposes, including stock repurchases.
| Issuer: | Union Pacific Corp.
|
| Amount: | $1 billion
|
| Description: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch and Morgan Stanley & Co. LLC
|
| Senior co-managers: | Barclays and Credit Suisse Securities (USA) LLC
|
| Co-managers: | MUFG, SunTrust Robinson Humphrey, Inc., U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC, BNY Mellon Capital Markets, LLC, Mizuho Securities USA Inc., Loop Capital Markets LLC and PNC Capital Markets LLC
|
| Trade date: | March 29
|
| Settlement date: | April 5
|
| Ratings: | Moody’s: A3
|
| S&P: A
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | April 15, 2027
|
| Coupon: | 3%
|
| Price: | 98.608
|
| Yield: | 3.163%
|
| Spread: | Treasuries plus 77 bps
|
| Call features: | Make-whole call at greater of par or Treasuries plus 15 bps; par call thereafter
|
| Change-of-control put: | 101%
|
|
|
| 30-year notes
|
| Amount: | $500 million
|
| Maturity: | April 15, 2047
|
| Coupon: | 4%
|
| Price: | 98.655
|
| Yield: | 4.078%
|
| Spread: | Treasuries plus 107 bps
|
| Call features: | Make-whole call before Oct. 15, 2046 at greater of par or Treasuries plus 20 bps; thereafter at par
|
| Change-of-control put: | 101%
|
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