By Cristal Cody
Tupelo, Miss., March 11– BB&T Corp. priced $2 billion of medium-term notes in two tranches on Monday, according to a market source and FWP filings with the Securities and Exchange Commission.
The company sold $1.35 billion of 3.05% medium-term senior notes due June 20, 2022 (A2/A-/A+) at 99.997 with a spread of 60 basis points over Treasuries. The notes priced on top of guidance but better than initial talk.
A $650 million tranche of 3.875% 10-year medium-term subordinated notes (A2/BBB+/A) priced at 99.901 and at a 125 bps over Treasuries spread. Price guidance was in the Treasuries plus 125 bps area, plus or minus 5 bps.
BB&T Capital Markets, BofA Merrill Lynch, Morgan Stanley & Co. LLC and SunTrust Robinson Humphrey, Inc. were the bookrunners.
Proceeds will be used for general corporate purposes.
BB&T and Atlanta-based SunTrust Banks Inc. announced on Feb. 7 the companies will merge in an all-stock deal valued at $66 billion with BB&T to be the surviving entity. The merger is expected to close in the fourth quarter.
BB&T is a bank and financial services company based in Winston-Salem, N.C.
| Issuer: | BB&T Corp.
|
| Amount: | $2 billion
|
| Description: | Medium-term senior notes
|
| Bookrunners: | BB&T Capital Markets, BofA Merrill Lynch, Morgan Stanley & Co. LLC and SunTrust Robinson Humphrey, Inc.
|
| Co-managers: | Academy Securities, Inc. and R. Seelaus & Co., LLC
|
| Trade date: | March 11
|
| Settlement date: | March 18
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $1.35 billion
|
| Description: | Series G medium-term senior notes
|
| Maturity: | June 20, 2022
|
| Coupon: | 3.05%
|
| Price: | 99.997
|
| Spread: | Treasuries plus 60 bps
|
| Call features: | On or after May 20, 2022 at par
|
| Ratings: | Moody’s: A2
|
| S&P: A-
|
| Fitch: A+
|
| Price guidance: | Treasuries plus 60 bps; initial talk at Treasuries plus 70 bps area
|
|
|
| 10-year notes
|
| Amount: | $650 million
|
| Description: | Series H medium-term subordinated notes
|
| Maturity: | March 19, 2029
|
| Coupon: | 3.875%
|
| Price: | 99.901
|
| Spread: | Treasuries plus 125 bps
|
| Call features: | On or after Feb. 16, 2029 at par
|
| Ratings: | Moody’s: A2
|
| S&P: BBB+
|
| Fitch: A
|
| Price guidance: | Treasuries plus 125 bps, plus or minus 5 bps; initial talk at Treasuries plus 130 bps area
|
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