By Aleesia Forni
Virginia Beach, March 4 – Burlington Northern Santa Fe LLC priced $1.5 billion of debentures (A3/BBB+) in two tranches on Wednesday, according to a market source and an FWP filed with the Securities and Exchange Commission.
There was $500 million of 3% debentures due 2025 priced at 99.534 to yield 3.054%, or Treasuries plus 93 basis points.
Guidance was set in the 95 bps area after having firmed from initial talk set in the 115 bps area.
A second tranche was $1 billion of 4.15% debentures due 2045 sold at 99.673 to yield 4.169%.
The notes sold with a spread of 145 bps over Treasuries.
Pricing was at the tight end of guidance set in the 150 bps area. Initial talk was set in the 165 bps area over Treasuries
Goldman Sachs & Co., J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the joint bookrunners.
Proceeds will be used for general corporate purposes, which may include working capital, capital expenditures, repayment of outstanding debt and distributions.
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: | Goldman Sachs & Co., J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Co-managers: | PNC Capital Markets LLC, U.S. Bancorp Investments Inc.
|
| Trade date: | March 4
|
| Settlement date: | March 9
|
| Ratings: | Moody’s: A3
|
| Standard & Poor’s: BBB+
|
| Distribution: | SEC registered
|
|
|
| 10-year debentures
|
| Amount: | $500 million
|
| Maturity: | April 1, 2025
|
| Coupon: | 3%
|
| Price: | 99.534
|
| Yield: | 3.054%
|
| Spread: | 93 bps over Treasuries
|
| Price guidance: | 95 bps area, tightened from 115 bps area
|
| Make-whole call: | 15 bps prior to Jan. 1, 2025
|
|
|
| 30-year debentures
|
| Amount: | $1 billion
|
| Maturity: | April 1, 2045
|
| Coupon: | 4.15%
|
| Price: | 99.673
|
| Yield: | 4.169%
|
| Spread: | 145 bps over Treasuries
|
| Price guidance: | 150 bps area, tightened from 165 bps area
|
| Make-whole call: | 25 bps prior to Oct. 1, 2044
|
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