By Andrea Heisinger
New York, Sept. 21 - Burlington Northern Santa Fe Corp. sold an upsized $750 million in 4.7% 10-year senior unsecured notes Monday to yield Treasuries plus 125 basis points, an informed source said.
The size was originally $500 million, he said. The deal was talked in the 130 bps area, with a margin of plus or minus 5 bps, the source said, adding that there was "north of $2 [billion] on the books."
The notes (Baa1/BBB/) priced at 99.825 to yield 4.722%. They have a make-whole call at Treasuries plus 25 bps.
Bookrunners were Barclays Capital Inc., Goldman Sachs & Co. and Wells Fargo Securities.
Co-managers were BNP Paribas Securities Corp., BNY Mellon Capital Markets LLC, Mitsubishi UFJ Securities, RBC Capital Markets Corp. and U.S. Bancorp Investments.
Proceeds will be used for general corporate purposes, including working capital, capital expenditures, to repay debt and commercial paper and to repay at maturity an issue of 7.125% notes due Dec. 15, 2010.
The railroad transportation company is based in Fort Worth.
| Issuer: | Burlington Northern Santa Fe Corp.
|
| Issue: | Senior unsecured notes
|
| Amount: | $750 million, increased from $500 million
|
| Maturity: | Oct. 1, 2019
|
| Bookrunners: | Barclays Capital Inc., Goldman Sachs & Co., Wells Fargo Securities
|
| Co-managers: | BNP Paribas Securities Corp., BNY Mellon Capital Markets LLC, Mitsubishi UFJ Securities, RBC Capital Markets Corp., U.S. Bancorp Investments
|
| Coupon: | 4.7%
|
| Price: | 99.825
|
| Yield: | 4.722%
|
| Spread: | Treasuries plus 125 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Trade date: | Sept. 21
|
| Settlement date: | Sept. 24
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB
|
| Price talk: | 130 bps area, plus or minus 5 bps
|
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