By Andrea Heisinger
New York, Aug. 17 - Burlington Northern Santa Fe, LLC sold $750 million of debentures (A3/BBB+/) in two tranches on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
A $450 million tranche of 3.45% 10-year notes was sold at 99.753 to yield 3.479% with a spread of Treasuries plus 130 basis points. The tranche was sold at the tight end of talk in the 135 bps area, a source said.
The notes have a make-whole call at Treasuries plus 20 bps until June 15, 2021 and can be redeemed afterward at par.
The second tranche was $300 million of 4.95% 30-year bonds priced at 99.871 to yield 4.958% with a spread of 140 bps over Treasuries. The bonds were priced at the low end of guidance in the 145 bps area.
The bonds have a make-whole call at Treasuries plus 25 before March 15, 2041 and are callable afterward at par.
Bookrunners were Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Goldman Sachs & Co.
Barclays Capital Inc., BNY Mellon Capital Markets LLC, PNC Capital Markets LLC and RBC Capital Markets LLC were the co-managers.
Proceeds are being used for general corporate purposes, including working capital, capital expenditures and debt repayment.
Burlington Northern last priced bonds in a $750 million sale in two parts on May 16. The 4.1% 10-year notes from that deal were priced at 100 bps over Treasuries while the 5.4% 30-year bonds were sold at 115 bps over Treasuries.
The holding company for railroad and transportation services is based in Fort Worth, Texas.
| Issuer: | Burlington Northern Santa Fe, LLC
|
| Issue: | Debentures
|
| Amount: | $750 million
|
| Bookrunners: | Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co.
|
| Trade date: | Aug. 17
|
| Settlement date: | Aug. 22
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: BBB+
|
|
|
| 10-year notes
|
| Amount: | $450 million
|
| Maturity: | Sept. 15, 2021
|
| Coupon: | 3.45%
|
| Price: | 99.753
|
| Yield: | 3.479%
|
| Spread: | Treasuries plus 130 bps
|
| Call: | Make-whole at Treasuries plus 20 bps before June 15, 2021, after at par
|
| Price talk: | 135 bps area
|
|
|
| 30-year bonds
|
| Amount: | $300 million
|
| Maturity: | Sept. 15, 2041
|
| Coupon: | 4.95%
|
| Price: | 99.871
|
| Yield: | 4.958%
|
| Spread: | Treasuries plus 140 bps
|
| Call: | Make-whole at Treasuries plus 25 bps before March 15, 2041, after at par
|
| Price talk: | 145 bps area
|
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