Published on 11/19/2019 in the Prospect News Investment Grade Daily.
New Issue: Western Union details $500 million of 2.85% senior notes due 2025
By Devika Patel
Knoxville, Tenn., Nov. 19 – Western Union Corp. (Baa2/BBB) offered further details about a $500 million sale of 2.85% senior notes due Jan. 10, 2025 that priced on Monday at a spread of 125 basis points over Treasuries, according to an FWP filed with the Securities and Exchange Commission.
These notes priced at 99.845 to yield 2.882%.
Initial talk was in the Treasuries plus 150 bps area.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the bookrunners.
Western Union marketed the deal with fixed income investor calls and meetings that ended Friday.
Proceeds will be used to fund a tender offer for the company’s $324.9 million of 5.253% notes due 2020 and for general corporate purposes.
Western Union is an Englewood, Colo.-based money transfer network.
| Issuer: | Western Union Corp.
|
| Amount: | $500 million
|
| Description: | Senior notes
|
| Maturity: | Jan. 10, 2025
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC
|
| Co-managers: | U.S. Bancorp Investments, Inc., BMO Capital Markets Corp., Fifth Third Securities, Inc., Mizuho Securities USA LLC, BBVA Securities Inc., Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., RBC Capital Markets LLC, Scotia Capital (USA) Inc., Siebert Williams Shank & Co. LLC and SunTrust Robinson Humphrey Inc.
|
| Coupon: | 2.85%
|
| Price: | 99.845
|
| Yield: | 2.882%
|
| Spread: | Treasuries plus 125 bps
|
| Call: | Make-whole call at Treasuries plus 20 bps until Dec. 10, 2024, then a par call
|
| Trade date: | Nov. 18
|
| Settlement date: | Nov. 25
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 130 bps area, plus or minus 5 bps; initial talk at Treasuries plus 150 bps area
|
| Marketing: | Fixed income investor calls and meetings
|
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