Published on 3/15/2019 in the Prospect News Investment Grade Daily.
New Issue: Synchrony Financial details $1.25 billion sale of five-, 10-year notes
By Cristal Cody
Tupelo, Miss., March 15 – Synchrony Financial provided additional details of its $1.25 billion two-tranche offering of fixed-rate senior notes (BBB/BBB-) that priced on Thursday in an FWP filing with the Securities and Exchange Commission.
The company sold $600 million of 4.375% five-year notes at 99.756 to yield 4.43%, or a spread of 200 basis points over Treasuries. The notes priced on top of guidance and tighter than initial talk in the 225 bps spread area.
A $650 million tranche of 5.15% 10-year notes priced in line with guidance with a Treasuries plus 255 bps spread. Initial talk was in the Treasuries plus 270 bps area. The notes priced at 99.784 to yield 5.178%.
J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and Wells Fargo Securities, LLC were the bookrunners.
Proceeds will be used for general corporate purposes.
Synchrony is a consumer financial services company based in Stamford, Conn.
| Issuer: | Synchrony Financial
|
| Amount: | $1.25 billion
|
| Description: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | Academy Securities, Inc., Blaylock Van, LLC, CastleOak Securities, LP, Mischler Financial Group, Inc., R. Seelaus & Co., LLC, Samuel A. Ramirez & Co., Inc. and Williams Capital Group, LP
|
| Trade date: | March 14
|
| Settlement date: | March 19
|
| Ratings: | S&P: BBB
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $600 million
|
| Maturity: | March 19, 2024
|
| Coupon: | 4.375%
|
| Price: | 99.756
|
| Yield: | 4.43%
|
| Spread: | Treasuries plus 200 bps
|
| Call features: | Make-whole call on or after Sept. 19, 2019 and before Feb. 19, 2024 at price equal to greater of par and Treasuries plus 30 bps; thereafter at par
|
| Price guidance: | Treasuries plus 200 bps; initial talk at Treasuries plus 225 bps area
|
|
|
| 10-year notes
|
| Amount: | $650 million
|
| Maturity: | March 19, 2029
|
| Coupon: | 5.15%
|
| Price: | 99.784
|
| Yield: | 5.178%
|
| Spread: | Treasuries plus 255 bps
|
| Call features: | Make-whole call on or after Sept. 19, 2019 and before Dec. 19, 2028 at price equal to greater of par and Treasuries plus 40 bps; thereafter at par
|
| Price guidance: | Treasuries plus 255 bps; initial talk at Treasuries plus 270 bps area
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
