By Andrea Heisinger
New York, March 5 - Burlington Northern Santa Fe, LLC was in Tuesday's market with a $1.5 billion sale of debentures (A3/BBB+/) in two parts, a market source said.
The sale included $700 million of 10-year notes priced at par to yield 3%, or Treasuries plus 110 basis points. The notes were sold tighter than talk in the 115 bps area.
An $800 million tranche of 4.45% 30-year bonds sold at 99.983 to yield 4.451% with a spread of Treasuries plus 133 bps. Pricing was in line with talk in the 135 bps area.
There is a change-of-control put at 101%.
Bookrunners were J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC.
Proceeds will be used for general corporate purposes, including working capital, capital expenditures, debt repayment and distribution.
The company was last in the U.S. bond market with a $1.25 billion sale in two parts on Aug. 16, 2012. That offering included a 3.05% 10-year note sold at 125 bps over Treasuries and a 4.375% 30-year bond priced at 150 bps over Treasuries.
The holding company for railroad transportation subsidiaries is based in Fort Worth, Texas.
| Issuer: | Burlington Northern Santa Fe, LLC
|
| Issue: | Debentures
|
| Amount: | $1.5 billion
|
| Bookrunners: | J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC
|
| Change-of-control put: | 101%
|
| Trade date: | March 5
|
| Settlement date: | March 12
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: BBB+
|
|
|
| 10-year notes
|
| Amount: | $700 million
|
| Maturity: | March 15, 2023
|
| Coupon: | 3%
|
| Price: | Par
|
| Yield: | 3%
|
| Spread: | Treasuries plus 110 bps
|
| Price talk: | 115 bps area
|
|
|
| 30-year bonds
|
| Amount: | $800 million
|
| Maturity: | March 15, 2043
|
| Coupon: | 4.45%
|
| Price: | 99.983
|
| Yield: | 4.451%
|
| Spread: | Treasuries plus 133 bps
|
| Price talk: | 135 bps area
|
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