By Andrea Heisinger
New York, Nov. 25 - Burlington Northern Santa Fe Corp. priced an upsized $500 million 7% five-year senior unsecured notes Tuesday to yield Treasuries plus 500 basis points, market sources said.
The size of the issue was increased from $300 million.
The notes (Baa1/BBB/BBB) priced at 99.983 to yield 7.007%. They have a make-whole call of Treasuries plus 50 bps.
The issue features a change-of-control put of 101%.
Bookrunners were Citigroup Global Markets, Goldman Sachs & Co. and J.P. Morgan Securities Inc.
Co-managers were BNP Paribas Securities Corp., BNY Mellon Capital Markets, LLC, U.S. Bancorp Investments, Inc. and Utendahl Capital Group, LLC.
Proceeds will be used for general corporate purposes, including working capital, capital expenditures, the repurchase of common stock and the repayment of commercial paper.
The transportation company is based in Fort Worth, Texas.
| Issuer: | Burlington Northern Santa Fe Corp.
|
| Issue: | Senior unsecured notes
|
| Amount: | $500 million, upsized from $300 million
|
| Maturity: | Feb. 1, 2014
|
| Bookrunners: | Citigroup Global Markets, Goldman Sachs & Co., J.P. Morgan Securities Inc.
|
| Co-managers: | BNP Paribas Securities Corp., BNY Mellon Capital Markets, LLC, U.S. Bancorp Investments, Inc., Utendahl Capital Group, LLC
|
| Coupon: | 7%
|
| Price: | 99.983
|
| Yield: | 7.007%
|
| Spread: | Treasuries plus 500 bps
|
| Change-of-control put: | 101%
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Trade date: | Nov. 25
|
| Settlement date: | Dec. 3
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
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