By Aleesia Forni
Virginia Beach, Aug. 13 – Burlington Northern Santa Fe LLC was in the market on Thursday with an upsized $1 billion offering of debentures (A3/BBB+) sold in two tranches, according to a market source and an FWP filed with the Securities and Exchange Commission.
There was $350 million of 3.65% 10-year notes priced at 99.782 to yield 3.676%, or Treasuries plus 148 basis points.
The notes sold at the tight end of guidance set in the Treasuries plus 150 bps area, tightened from the Treasuries plus 160 bps area.
Also, $650 million of 4.7% 30-year bonds priced at 99.425 to yield 4.736%.
The notes sold at Treasuries plus 185 bps, at the tight end of the Treasuries plus 190 bps area guidance following initial talk set in the Treasuries plus 195 bps area.
BofA Merrill Lynch, Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC are 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 billion
|
| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC
|
| Co-managers: | BNY Mellon Capital Markets, LLC, U.S. Bancorp Investments, Inc., Williams Capital Group, LP
|
| Trade date: | Aug. 13
|
| Settlement date: | Aug. 20
|
| Ratings: | Moody’s: A3
|
| Standard & Poor’s: BBB+
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $350 million
|
| Maturity: | Sept. 1, 2025
|
| Coupon: | 3.65%
|
| Price: | 99.782
|
| Yield: | 3.676%
|
| Spread: | Treasuries plus 148 bps
|
| Price guidance: | Treasuries plus 150 bps area, tightened from Treasuries plus 160 bps area
|
| Make-whole call: | Treasuries plus 25 bps prior to June 1, 2025, then callable at par
|
|
|
| 30-year bonds
|
| Amount: | $650 million
|
| Maturity: | Sept. 1, 2045
|
| Coupon: | 4.7%
|
| Price: | 99.425
|
| Yield: | 4.736%
|
| Spread: | Treasuries plus 185 bps
|
| Price guidance: | Treasuries plus 190 bps area, tightened from Treasuries plus 195 bps area
|
| Make-whole call: | Treasuries plus 30 bps prior to March 1, 2045, then callable at par
|
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