Published on 3/20/2020 in the Prospect News Investment Grade Daily.
New Issue: Charles Schwab prices $1.1 billion of senior notes in two tranches
By Cristal Cody
Tupelo, Miss., March 20 – Charles Schwab Corp. priced $1.1 billion of senior notes (A2/A/A) in two tranches on Friday, according to an FWP filing with the Securities and Exchange Commission.
The $600 million of 4.2% five-year notes priced at 99.946 to yield 4.212% and a Treasuries plus 370 basis points spread.
A $500 million tranche of 4.625% 10-year notes priced at 99.858 to yield 4.643%. The notes were sold with a spread 370 bps over Treasuries.
BofA Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC were the bookrunners.
Proceeds will be used for general corporate purposes.
Charles Schwab is a San Francisco-based company that provides wealth management, securities brokerage, banking, asset management, custody and financial advisory services.
| Issuer: | Charles Schwab Corp.
|
| Amount: | $1.1 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC
|
| Senior co-managers: | Morgan Stanley and Co. LLC and Wells Fargo Securities, LLC
|
| Co-managers: | HSBC Securities (USA) Inc., Lloyds Securities Inc., PNC Capital Markets LLC and U.S. Bancorp Investments, Inc.
|
| Trade date: | March 20
|
| Settlement date: | March 24
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $600 million
|
| Maturity: | March 24, 2025
|
| Coupon: | 4.2%
|
| Price: | 99.946
|
| Yield: | 4.212%
|
| Spread | Treasuries plus 370 bps
|
| Call features: | Make-whole call on or after Sept. 24, 2020 and before Feb. 24, 2025 at price equal to greater of par or Treasuries plus 50 bps; thereafter at par
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | March 22, 2030
|
| Coupon: | 4.625%
|
| Price: | 99.858
|
| Yield: | 4.643%
|
| Spread: | Treasuries plus 370 bps
|
| Call features: | Make-whole call on or after Sept. 24, 2020 and before Dec. 22, 2029 at price equal to greater of par or Treasuries plus 50 bps; thereafter at par
|
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