By William Gullotti and Cristal Cody
Buffalo, N.Y., March 3 – Charles Schwab Corp. gave additional details of its $3 billion of notes (A2/A/A) that priced in three tranches on Tuesday, including the issue price and yield, according to an FWP filing with the Securities and Exchange Commission.
Schwab priced $500 million of floating-rate notes due March 3, 2027 at par. The coupon is based on SOFR plus 105 basis points.
The other two tranches are fixed-rate notes.
The second tranche is a fixed-rate tranche of $1.5 billion of 2.45% notes, priced at 99.892, with the same maturity date as the floating-rate notes, March 3, 2027. The tranche priced with a spread of Treasuries plus 90 bps to yield 2.473%. Price talk was in the Treasuries plus 115 bps area.
The third is a $1 billion tranche of 2.9% notes due March 3, 2032 that priced at 99.776. The 120 bps spread, reflecting a 2.926% yield, came 25 bps low to talk in the Treasuries plus 145 bps area.
The floating-rate notes feature a par call option one month before the maturity date.
The 2027 fixed-rate notes will have a make-whole call option available until one month before the maturity date, set at the greater of par and the sum of the remaining payments of principal and interest discounted at Treasuries plus 15 bps, followed by a par call.
The 2032 fixed-rate notes will also have a make-whole call, set at the greater of par and the sum of the remaining payments of principal and interest discounted at Treasuries plus 20 bps, until three months prior to maturity followed by a par call.
BofA Securities, Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are the joint bookrunning managers for the offering.
Proceeds will be used for general corporate purposes.
Charles Schwab is a San Francisco-based financial services company.
| Issuer: | Charles Schwab Corp.
|
| Amount: | $3 billion
|
| Issue: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC
|
| Senior co-manager: | Goldman Sachs & Co. LLC
|
| Co-managers: | Barclays, HSBC Securities (USA) Inc., PNC Capital Markets LLC, U.S. Bancorp Investments, Inc.
|
| Trustee: | Bank of New York Mellon Trust Co., NA
|
| Counsel to issuer: | Arnold & Porter Kaye Scholer LLP
|
| Counsel to underwriters: | Simpson Thacher & Bartlett LLP
|
| Trade date: | March 1
|
| Settlement date: | March 3
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Floaters
|
| Amount: | $500 million
|
| Issue: | Floating-rate senior notes
|
| Maturity: | March 3, 2027
|
| Coupon: | SOFR plus 105 bps
|
| Price: | Par
|
| Yield: | SOFR plus 105 bps
|
| Call features: | Par call one month before maturity
|
| Cusip: | 808513BZ7
|
|
|
| 2027 notes
|
| Amount: | $1.5 billion
|
| Issue: | Senior notes
|
| Maturity: | March 3, 2027
|
| Coupon: | 2.45%
|
| Price: | 99.892
|
| Yield: | 2.473%
|
| Spread: | Treasuries plus 90 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps until one month before maturity date; then par call
|
| Price talk: | Treasuries plus 115 bps area
|
| Cusip: | 808513BY0
|
|
|
| 2032 notes
|
| Amount: | $1 billion
|
| Issue: | Senior notes
|
| Maturity: | March 3, 2032
|
| Coupon: | 2.9%
|
| Price: | 99.776
|
| Yield: | 2.926%
|
| Spread: | Treasuries plus 120 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps until three months before maturity date; then par call
|
| Price talk: | Treasuries plus 145 bps area
|
| Cusip: | 808513CA1
|
|
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