Published on 6/5/2023 in the Prospect News Investment Grade Daily.
New Issue: Burlington Northern prices $1.6 billion 5.2% debentures due 2054
Chicago, June 5 – Burlington Northern Santa Fe, LLC priced $1.6 billion of 5.2% debentures due 2054 (A3/AA-) on Monday, according to an FWP filing with the Securities and Exchange Commission and a 424B5 filing earlier in the day.
The notes priced at 99.946 to yield 5.204%, or at Treasuries plus 130 basis points.
The notes are callable with a Treasuries plus 20 bps make-whole premium until Oct 15, 2053 when they become callable at par.
Barclays, Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC are leading the deal. BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are also listed as bookrunners.
Proceeds will be used for general corporate purposes, including working capital, capital expenditures, debt repayment and distributions.
The holding company for railroad transportation subsidiaries is based in Fort Worth.
| Issuer: | Burlington Northern Santa Fe, LLC
|
| Amount: | $1.6 billion
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| Issue: | Senior debentures
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| Maturity: | April 15, 2054
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| Bookrunners: | Barclays, Morgan Stanley & Co. LLC, Wells Fargo Securities, LLC, BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC
|
| Co-managers: | PNC Capital Markets LLC, Siebert Williams Shank & Co., LLC and U.S. Bancorp Investments, Inc.
|
| Trustee: | Bank of New York Mellon Trust Co., NA
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| Counsel to issuer: | Cravath, Swaine & Moore LLP
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| Counsel to underwriters: | Baker Botts LLP
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| Coupon: | 5.2%
|
| Price: | 99.946
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| Yield: | 5.204%
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| Spread: | Treasuries plus 130 bps
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| Call features: | Make-whole call at Treasuries plus 20 bps until Oct. 15, 2053; thereafter at par
|
| Change of control: | At 101
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| Trade date: | June 5
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| Settlement date: | June 9
|
| Ratings: | Moody’s: A3
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| S&P: AA-
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| Distribution: | SEC registered
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| Cusip: | 12189LBK6
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