By Paul A. Harris
Portland, Ore., May 18 – Square, Inc. priced $2 billion of senior bullet notes (Ba2/BB/BB) in two tranches on Tuesday, according to market sources.
The deal included $1 billion of five-year notes that prices at par to yield 2¾%, at the tight end of the 2¾% to 3% yield talk. Initial guidance was in the low-to-mid 3% area.
Square also sold $1 billion of 10-year notes that priced at par to yield 3½%, at the tight end of the 3½% to 3¾% yield talk. Initial guidance was in the high 3% to 4% area.
Goldman Sachs & Co. LLC was the left bookrunner. Joint bookrunners were Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and Wells Fargo Securities LLC.
The San Francisco-based financial services provider plans to use the proceeds for general corporate purposes, which may include potential acquisitions and strategic transactions, capital expenditures, investments and working capital.
| Issuer: | Square, Inc.
|
| Amount: | $2 billion
|
| Securities: | Senior notes
|
| Left bookrunner: | Goldman Sachs & Co. LLC
|
| Joint bookrunners: | Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and Wells Fargo Securities LLC
|
| Co-managers: | U.S. Bancorp Investments Inc., SMBC Nikko Securities America Inc., Siebert Williams Shank & Co., LLC and HSBC Securities (USA) Inc.
|
| Trade date: | May 18
|
| Settlement date: | May 20
|
| Ratings: | Moody's: Ba2
|
| S&P: BB
|
| Fitch: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | June 1, 2026
|
| Coupon: | 2¾%
|
| Price: | Par
|
| Yield: | 2¾%
|
| Spread: | 191 bps
|
| Call protection: | Make-whole call until May 1, 2026
|
| Change of control: | At 101
|
| Price talk: | 2¾% to 3%
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | June 1, 2031
|
| Coupon: | 3½%
|
| Price: | Par
|
| Yield: | 3½%
|
| Spread: | 185 bps
|
| Call protection: | Make-whole call until March 1, 2031
|
| Change of control: | At 101
|
| Price talk: | 3½% to 3¾%
|
|
|
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