By Andrea Heisinger
New York, Dec. 7 - BlackRock, Inc. priced an upsized $2.5 billion of unsecured notes (A1/A+/) in three tranches late on Monday, an informed source said.
The deal was originally announced as being in two tranches, according to a 424B5 filing with the Securities and Exchange Commission.
The $500 million tranche of 2.25% three-year notes priced at 99.758 to yield 2.334% with a spread of Treasuries plus 110 basis points. There is a make-whole call at Treasuries plus 15 bps.
The $1 billion of 3.5% five-year notes priced at 99.855 to yield 3.532%, or 135 bps over Treasuries. There is a make-whole call at 20 bps over Treasuries.
A $1 billion tranche of 5% 10-year notes priced at 99.728 to yield 5.035%, or 160 bps over Treasuries. They have a make-whole call at Treasuries plus 25 bps.
Bookrunners were Barclays Capital Inc., Citigroup Global Markets Inc., Credit Suisse Securities and Bank of America Merrill Lynch.
Proceeds will be used to repay borrowings under a commercial paper program.
The investment management firm is based in New York City.
| Issuer: | BlackRock, Inc.
|
| Issue: | Unsecured notes
|
| Amount: | $2.5 billion, increased from two tranches
|
| Bookrunners: | Barclays Capital Inc., Citigroup Global Markets Inc., Credit Suisse Securities, Bank of America Merrill Lynch
|
| Trade date: | Dec. 7
|
| Settlement date: | Dec. 10
|
| Ratings: | Moody's: A1
|
| Standard & Poor's: A+
|
|
|
| Three-year notes
|
| Amount: | $500 million
|
| Maturity: | Dec. 10, 2012
|
| Coupon: | 2.25%
|
| Price: | 99.758
|
| Yield: | 2.334%
|
| Spread: | Treasuries plus 110 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | Dec. 10, 2014
|
| Coupon: | 3.5%
|
| Price: | 99.855
|
| Yield: | 3.532%
|
| Spread: | Treasuries plus 135 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | Dec. 20, 2019
|
| Coupon: | 5%
|
| Price: | 99.728
|
| Yield: | 5.035%
|
| Spread: | Treasuries plus 160 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
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