By Andrea Heisinger
New York, Feb. 28 - Burlington Northern Santa Fe, LLC priced $1.25 billion of debentures (A3/BBB+/) in two tranches on Tuesday, an informed source said.
The $625 million of 3.05% 10-year paper priced at 99.75 to yield 3.079% with a spread of 115 basis points over Treasuries. The tranche sold at the tight end of guidance in the 120 bps area.
There is a make-whole call at Treasuries plus 20 bps before Dec. 15, 2021 and a par call after that date.
A $625 million tranche of 4.4% 30-year bonds sold at 99.585 to yield 4.425% with a spread of Treasuries plus 137.5 bps. The bonds sold in line with guidance in the 137.5 bps area.
There is a make-whole call at Treasuries plus 20 bps before Sept. 15, 2041 and a par call after the date.
J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC were the bookrunners.
Co-managers were BMO Capital Markets Corp. and U.S. Bank Investments Inc.
Proceeds will be used for general corporate purposes, including working capital, capital expenditures, debt repayment and distributions.
The company was last in the market with a $750 million deal in 10- and 30-year tranches on Aug. 17, 2011. The 3.45% 10-year notes from that offering priced at 130 bps over Treasuries, and the 4.95% 30-year bonds sold at 140 bps over Treasuries.
The holding company for a transportation and railroad company is based in Fort Worth, Texas.
| Issuer: | Burlington Northern Santa Fe, LLC
|
| Issue: | Debentures
|
| Amount: | $1.25 billion
|
| Bookrunners: | J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC
|
| Co-managers: | BMO Capital Markets Corp., U.S. Bank Investments Inc.
|
| Trade date: | Feb. 28
|
| Settlement date: | March 2
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: BBB+
|
|
|
| 10-year notes
|
| Amount: | $625 million
|
| Maturity: | March 15, 2022
|
| Coupon: | 3.05%
|
| Price: | 99.75
|
| Yield: | 3.079%
|
| Spread: | Treasuries plus 115 bps
|
| Call: | Make-whole at Treasuries plus 20 bps until Dec. 15, 2021, par after
|
| Price talk: | 120 bps area
|
|
|
| 30-year bonds
|
| Amount: | $625 million
|
| Maturity: | March 15, 2042
|
| Coupon: | 4.4%
|
| Price: | 99.585
|
| Yield: | 4.425%
|
| Spread: | Treasuries plus 137.5 bps
|
| Call: | Make-whole at Treasuries plus 20 bps until Sept. 15, 2041, par after
|
| Price talk: | 137.5 bps area
|
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