By Cristal Cody
Tupelo, Miss., May 17 – Charles Schwab Corp. priced $1.95 billion of senior notes (A2/A/A) in three tranches on Thursday, according to an FWP filing with the Securities and Exchange Commission.
The company priced $600 million of three-year floating-rate notes at par to yield Libor plus 32 basis points.
The $600 million of 3.25% three-year fixed-rate notes priced at 99.997 to yield 3.251%. The notes were sold with a Treasuries plus 50 bps spread.
In the final tranche, Charles Schwab sold $750 million of 3.85% seven-year notes at 99.933 to yield 3.861%, or a Treasuries plus 80 bps spread.
Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., J.P. Morgan Securities LLC and BofA Merrill Lynch were the bookrunners.
Proceeds will be used for general corporate purposes, including redeeming or repaying the company’s $275 million of 2.2% senior notes due July 25, 2018.
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: | $1.95 billion
|
| Description: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., J.P. Morgan Securities LLC and BofA Merrill Lynch
|
| Senior co-managers: | Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC
|
| Co-managers: | BNY Mellon Capital Markets, LLC, HSBC Securities (USA) Inc., Lloyds Securities Inc., PNC Capital Markets LLC and U.S. Bancorp Investments, Inc.
|
| Trade date: | May 17
|
| Settlement date: | May 22
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Three-year floaters
|
| Amount: | $600 million
|
| Maturity: | May 21, 2021
|
| Coupon: | Libor plus 32 bps
|
| Price: | Par
|
| Yield: | Libor plus 32 bps
|
| Call feature: | On or after April 21, 2021 at par
|
|
|
| Three-year notes
|
| Amount: | $600 million
|
| Maturity: | May 21, 2021
|
| Coupon: | 3.25%
|
| Price: | 99.997
|
| Yield: | 3.251%
|
| Spread: | Treasuries plus 50 bps
|
| Call features: | Make-whole call at greater of par or Treasuries plus 10 bps before April 21, 2021; thereafter at par
|
|
|
| Seven-year notes
|
| Amount: | $750 million
|
| Maturity: | May 21, 2025
|
| Coupon: | 3.85%
|
| Price: | 99.933
|
| Yield: | 3.861%
|
| Spread: | Treasuries plus 80 bps
|
| Call features: | Make-whole call at greater of par or Treasuries plus 15 bps before March 21, 2025; thereafter at par
|
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